“Foiling the Liquidation of Assets Linked to the Largest Real Estate Project in Can Tho”

According to the Can Tho City Tax Department, based on the Notification of Tax Arrears No. 11350/TB-CTCTH-KDT dated July 8, 2024, as of June 30, 2024, Ngân Thuận Construction Co., Ltd. (Ngân Thuận Company) owed a total of 629,109,812,106 VND in taxes.

As a result, the Can Tho City Tax Department is enforcing a suspension of invoice use for Ngân Thuận Construction Co., Ltd. from March 4, 2024, to March 3, 2025. At the same time, the Can Tho City Tax Department has issued Document No. 644 on requesting Ngân Thuận Company to provide information on the list of assets for enforcement by the measure of distrainment of assets.

Currently, Ngân Thuận Company has 349 land plots with an area of 56,123 square meters in inventory at the Ngân Thuận Residential Area project. However, the company has not yet obtained land-use rights certificates for these plots. Ngân Thuận Company is in the process of changing the 1/500 planning, after which it will proceed with measurements and procedures to obtain a general land-use certificate for each block. Once the general certificate is obtained, the company will carry out procedures to separate the blocks into individual land plots for business purposes, with the expected completion date in December 2026. The company plans to open sales in the first quarter of 2027.

The Can Tho City Tax Department has continuously sent Documents No. 2350 and 2793 to the Can Tho City Department of Natural Resources and Environment, requesting support in providing information related to the land of Ngân Thuận Construction Co., Ltd. However, the Can Tho City Tax Department has not received a response from the Department of Natural Resources and Environment.

To have sufficient grounds to enforce the measure of distrainment of assets, auction of distrained assets against the taxpayer subject to enforcement, and prevent the dissipation of assets, the Can Tho City Tax Department requests the Department of Natural Resources and Environment and the Can Tho City Land Registration Office to support and coordinate in preventing and providing the following information:

Provide information on the 349 land plots with an area of 56,123 square meters belonging to Ngân Thuận Construction Co., Ltd. in the Ngân Thuận Residential Area project, which are still in the project and have not been granted land-use rights certificates as previously informed.

In addition to the above-mentioned 349 land plots with an area of 56,123 square meters, does Ngân Thuận Construction Co., Ltd. have any other projects with expanded land areas that have been approved for investment? Have they been granted land-use rights certificates by competent authorities (if any)?

If Ngân Thuận Construction Co., Ltd. obtains the 1/500 planning change on the land in the project and completes the procedures for the land-use rights certificates for the 349 land plots mentioned above, as well as for any other expansions, the Department of Natural Resources and Environment and the Can Tho City Land Registration Office are requested not to sign confirmation of assets for mortgage to borrow capital from banks or for other payments, and not to allow transfer in any form, with the aim of preventing the dissipation of assets to avoid tax obligations to the State.

Previously, KITA Invest Company won the auction in 2019 for the KDC Ngân Thuận project, with Ngân Thuận Company as the investor. Regarding the prevention of dissipation of assets of Ngân Thuận Company, a representative of KITA Group stated that the list of assets requested to be prevented from dissipation belonged to Ngân Thuận Company and were lands that had not been granted certificates of land rights. KITA Invest has no connection or involvement with these assets.

In Document No. 3359/CTCTH-QLN dated July 16, 2024, of the Can Tho City Tax Department, Ngân Thuận Company provided information on the list of assets for enforcement by the measure of distrainment of assets. Accordingly, the assets of Ngân Thuận Company that fall under the request of the Can Tho City Tax Department are those mentioned by the Land Registration Office in its document sent to the Can Tho City Tax Department, and they are not among the 2,455 real estate products that KITA Invest won at the auction.

Regarding this project, KITA Group and KITA Invest are currently developing it into the KITA Airport City urban area. On August 3, KITA Group, as the project developer, inaugurated the construction of the Icon Stella apartment building in this urban area.

Moreover, the representative of KITA Group also affirmed that the tax debt of Ngân Thuận Company has nothing to do with KITA Invest as they are two completely independent legal entities. KITA Invest has fulfilled its tax obligations to the state.