The Condo Management Fined a Whopping $5 Million for Breaches.

The Binh Chanh District Tax Department (now the Binh Chanh District Tax Team, Area II Tax Department) has just issued an administrative sanction decision on invoicing violations against the Management Board of Conic Southeast Asia Apartment (Lot 13B, Conic Residential Area, Nguyen Van Linh Street, Phong Phu Commune, Binh Chanh District, Ho Chi Minh City) with a fine of up to VND 119 billion.

Specifically, the 2024-2027 term Management Board of Conic Southeast Asia Apartment has committed an administrative violation by failing to issue invoices for goods sales and service provision to buyers as stipulated in Decree No. 125/2020 of the Government on sanctioning administrative violations in taxation and invoicing. The violation was committed repeatedly, which is a aggravating circumstance.

For this violation, the Management Board of Conic Southeast Asia Apartment was fined an amount of over VND 119,788,500,000. Of this amount, the fine for failing to issue invoices for goods sales and service provision to buyers (sub-clause 4254) amounted to over VND 119 billion.

The decision also stipulates a remedial measure, requiring the Management Board to reissue invoices and deliver them to the buyers in accordance with the Government’s Decree No. 123 on invoicing and vouchers.

This decision is entrusted to Ms. Phan Y Nhi, the legal representative of the sanctioned organization, for compliance. It is also sent to the Vietnam Bank for Agriculture and Rural Development, Nam Saigon Branch, for collection, and to the People’s Committee of Binh Chanh District and the People’s Committee of Phong Phu Commune for reporting and coordination in implementation.

The sanction decision clearly states that the Management Board of Conic Southeast Asia Apartment must strictly comply with this sanction decision. If the Management Board fails to voluntarily comply by the specified deadline, coercive measures will be applied in accordance with the law.

The Management Board of Conic Southeast Asia Apartment is required to pay the fine into account number 6440203000010 of the State Treasury of Binh Chanh at the Vietnam Bank for Agriculture and Rural Development, Nam Saigon Branch.

The Management Board of Conic Southeast Asia Apartment has the right to lodge complaints or initiate lawsuits against this decision in accordance with the law.

Conic Southeast Asia Apartment is invested by Linh Phong – Conic Field Investment and Development Company Ltd. The apartment complex consists of three buildings with a total of 242 apartments and was handed over to buyers in 2006.

The 2024-2027 term Management Board of Conic Southeast Asia Apartment was recognized by the People’s Committee of Binh Chanh District according to a decision issued on November 15, 2024.

According to our understanding, the Management Board of Conic Southeast Asia Apartment has transitioned from a “collecting and paying on behalf” model to a “self-collecting and self-paying” model. The Board has also provided various services, such as management, operation, and domestic water supply, without issuing value-added tax invoices to residents as required.