In Gia Lai province, irregularities have been detected in 24 land auction sessions held in nine districts, towns, and cities, involving 373 land lots. Notably, hundreds of land lots were auctioned for hundreds of millions of VND, but the transfer prices ranged only from 10 million to less than 50 million VND. In one extreme case, a land lot auctioned for 4.2 billion VND was transferred for just 50 million VND.
The inspection agency determined that the tax authority solely relied on the transfer value stated in the contract or the land price frame set by the provincial People’s Committee for tax calculation, instead of considering the auction results. This has led to instances of declared transfer values being lower than the auction prices, indicating potential dishonesty.
A land auction in Pleiku City, Gia Lai Province, in 2022 (Photo: Nguyen Thao)
Additionally, in Chu Se District, the People’s Committee allowed several individuals to owe tens of billions of VND in land use fees after winning the auction for land lots in the project of the Planning Center of the District and the Eco-Urban Area to the East of Chu Se Town.
In 2019, at this project, Ms. Ho Thi Hien from Pleiku won the auction for 107 land lots, 61 of which had late payments of up to 140 days; Mr. Nguyen Xuan Anh from Pleiku won 44 land lots and delayed payment by over 300 days; and Mr. Le Viet Duc won 54 land lots and was late by more than 100 days.
The Planning Center of Chu Se District and the Eco-Urban Area to the East of Chu Se Town (Photo: Le Kien)
However, the People’s Committee of Chu Se District relaxed their management, failing to annul the auction results and collect the deposits (over 15 billion VND) as per regulations. Instead, they permitted extensions for the payment of the auctioned land lots.
Many of these land lots have since been transferred to other households and individuals. The inspection agency has requested the local authorities and tax agency to review the 373 cases of declared transfer values lower than the auction prices to prevent tax losses.
Should there be any indications of criminal offenses, the case files will be transferred to the police for investigation. Simultaneously, the deposit collection for the land lots with violations of the regulations has been mandated.
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