Nearly 25,000 square meters of land at 39 Han Mac Tu Street was leased by Gia Lai Provincial People’s Committee without auction
On September 9, the People’s Committee of Gia Lai province requested the provincial Tax Department and related units to rectify the violations that the Government Inspectorate had pointed out in the Investment Project for construction of Hoang Dieu Asean School (No. 39 Han Mac Tu, Tra Ba Ward, Pleiku City).
Since 2013, the People’s Committee of Gia Lai province has leased 24,744.7 square meters of land to the ASEAN Community Culture and Education Development Joint Stock Company (ASEAN Culture and Education Company) for the investment project to build Hoang Dieu Asean School.
The Government Inspectorate determined that the assets on this land area are public assets, valued at nearly VND 3 billion. These assets are on the list of liquidation by auction method. However, the People’s Committee of Gia Lai province sold it by appointment, and then issued a decision to lease the land to the ASEAN Culture and Education Company without auction, which is contrary to the provisions of law.
On the other hand, Gia Lai province did not arrange and handle public houses and land, and did not organize the auction of public assets, so it is not eligible for land rent exemption, so there is a risk of budget loss with a minimum amount of land rent allowed to be exempted from February 2021 to March 2063 of over VND 18.3 billion. Of which, the amount actually exempted from February 2021 to December 2021 was nearly VND 400 million, which must be recovered and the decision on land rent exemption must be revoked.
The Provincial People’s Committee directed the Gia Lai Tax Department to re-determine the land price, revoke the decision on land rent exemption, and collect land rent
In this project, Gia Lai province also violated by not fully assessing the conditions and financial capacity of the investor before granting the investment registration certificate (for the first time on August 11, 2015).
The People’s Committee of Gia Lai province violated the order and procedures when handing over the house and land to the VHDG Company before the decision on land lease was issued, 7 months in advance.
Especially, the People’s Committee of Gia Lai province did not issue an investment certificate for the project. When the project was behind schedule, the inter-sectoral team unanimously advised the People’s Committee of the province to revoke it, and the Provincial People’s Council also had a document requesting it, but the People’s Committee of the province did not handle it according to regulations, and allowed the adjustment of the investment progress for the project to continue to be completed in 2020.
The Gia Lai Department of Planning and Investment also violated the law by granting an investment registration certificate without a decision on the investment policy. The investor is incapable of carrying out the project, the project is more than 36 months behind schedule compared to the investment registration certificate, but the Department of Planning and Investment does not advise and propose to terminate the project and revoke the investment registration certificate, which is a violation of the Law on Investment.
The ASEAN Culture and Education Company does not comply with the reporting regime (from August 2015 to July 2017), but the Gia Lai Department of Planning and Investment does not monitor and evaluate the implementation, nor does it require the investor to report.
The investor does not implement the project (exceeding 12 months) but the Gia Lai Department of Natural Resources and Environment does not advise on land recovery, which is not in accordance with the direction of the People’s Committee of Gia Lai province when leasing land.
In 2015, the Gia Lai Tax Department issued a decision to exempt land rent during the basic construction period for 3 years with an amount of over VND 700 million, which is not in accordance with the regulations. The ASEAN Culture and Education Company is only entitled to a reduction of nearly VND 120 million in land rent, corresponding to the basic construction period of 5 months, the remaining amount must be recovered.
The Government Inspectorate has determined that the responsibility for the above-mentioned shortcomings and shortcomings belongs to the Chairman of the Provincial People’s Committee, the Vice Chairman of the Provincial People’s Committee in charge, the Director of the Department of Planning and Investment, the Director of the Department of Natural Resources and Environment, the Director of the Provincial Tax Department and related organizations and individuals during the past periods.
Collect many types of taxes
In the plan to rectify the contents according to the conclusion of the Government Inspectorate, regarding the above project, the Provincial People’s Committee has directed the Gia Lai Tax Department to re-determine the land price, revoke the decision on land rent exemption, collect land rent, and calculate late payment interest (if any) to collect fully and correctly.
Directing the review and collection of taxes on income from trading in shares, transfer of projects according to regulations (if any) to ensure that the state budget is not lost.
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