On September 17th, the Ho Chi Minh City People’s Court commenced the trial of defendant Pham Van Tam, former Chairman of Asanzo Company’s Board of Directors, on charges of “Smuggling” and “Tax Evasion.”
In connection with the case, defendant Pham Xuan Tinh, CEO of Asanzo Company and Mr. Tam’s brother, faced trial for Tax Evasion. Presiding over the trial was Judge Vu Thanh Lam, Chief Judge of the Criminal Division at the Ho Chi Minh City People’s Court.
Pham Van Tam, former Chairman of Asanzo, at the September 17th trial. (Photo: Luong Y)
According to the indictment, Asanzo Company was first registered on October 20th, 2016, at the Ho Chi Minh City Department of Planning and Investment. Pham Van Tam served as both Director and legal representative.
In 2017, Pham Xuan Tinh assumed the role of CEO, while Mr. Tam became Chairman of the Board, overseeing all company operations.
From August 13th to October 7th, 2019, the Ho Chi Minh City Tax Department (now Tax Service Area II) audited Asanzo’s tax compliance for the period 2016–July 2019.
The audit revealed that Asanzo purchased components from Tran Tho Company and contracted VTB Company to assemble air conditioners with a capacity below 90,000 BTU.
These products were labeled and packaged under the Asanzo brand and sold to Asanzo Refrigeration Company without invoices or tax declarations, effectively keeping the revenue off the books. Additionally, the company used illegal value-added tax invoices, declaring “air conditioner components” instead of “air conditioners,” to account for input and tax purposes as commercial activity.
Defendants Pham Xuan Tinh and Pham Van Tam at the September 17th trial. (Photo: Luong Y)
Tran Tho Company directly issued value-added tax invoices (for finished products) to Asanzo Refrigeration Company.
Tax assessment findings determined that from 2017 to Q2 2019, Asanzo evaded taxes totaling over 15.7 billion VND across two tax types. This included over 4.1 billion VND in value-added tax and over 11.5 billion VND in special consumption tax.
On October 30th, 2019, the Ho Chi Minh City Tax Department issued a decision to transfer the case file of administrative violations with criminal indications to the Ho Chi Minh City Police Investigation Agency.
Five months later, on March 24th, 2020, Asanzo Company paid 15.8 billion VND in tax arrears.
Beyond the aforementioned acts, Pham Van Tam was also accused of using Sa Huynh Company, directed by Truong Ngoc Liem, to smuggle 1,300 glass ovens from China into Vietnam.
Specifically, on September 5th, 2018, Sa Huynh Company filed an import declaration at ICD Phuoc Long 3 Port, Ho Chi Minh City. The declared shipment included 970 plastic oven lids, 940 glass oven basins, 118 oven timers, 1,060 plastic oven handles, and 1,120 oven grills. The goods were declared as 100% new, originating from China, with a total value of 212 million VND.
The signatures and seals on the import declaration and related documents belonged to Huynh Thi Sa Quol. The shipment was assigned to the yellow channel but was later subject to a 100% physical inspection.
Customs inspection results identified the shipment as 1,300 complete Asanzo glass ovens, disassembled, 100% new, without indicating the import conditions requiring state quality inspection. Consequently, customs authorities denied clearance and requested Sa Huynh Company representatives to address the violations.
On October 9th, 2018, Truong Ngoc Liem (representing Sa Huynh Company) and Nguyen The Tai (a customs service provider) met with customs authorities to request clearance for the shipment but were unsuccessful.
On December 3rd, 2018, the Ho Chi Minh City Customs Department (now Customs Service Area II) transferred the case file of administrative violations with criminal indications to the Ho Chi Minh City Police Investigation Agency.
The City-level Asset Valuation Council in Criminal Proceedings determined the wholesale value of the smuggled goods seized from Sa Huynh Company in September 2018 to be over 414 million VND (inclusive of value-added tax).
On March 3rd, 2020, the Ho Chi Minh City Police Investigation Agency charged Truong Ngoc Liem with “Smuggling.”
Liem confessed that Sa Huynh Company was actually owned by Pham Van Tam. When violations were detected, Tam asked Liem to act as the legal representative for Sa Huynh Company. Liem agreed and represented Sa Huynh Company in dealings with customs authorities to clear the violating shipment.
However, Tam denied involvement in smuggling. He claimed that at the time of the incident, Sa Huynh Company imported Asanzo glass ovens with incorrect customs declarations. He learned of the shipment’s connection to Asanzo Company through the media.
Tam contacted Liem (a former employee) for information, fearing it might impact the company’s operations. Tam asserted he was not the owner of Sa Huynh Company, did not request Liem to change the business registration or act as director, and did not instruct Liem to contact customs authorities to clear the violating shipment.
Nevertheless, based on collected evidence, authorities found sufficient grounds to prosecute Tam for Smuggling.
Asanzo Chairman Pham Van Tam Fined Over $87,000 and Sentenced to Prison
In a surprising turn of events at today’s court hearing, defendant Phạm Văn Tam fully admitted to all charges brought against him by the Ho Chi Minh City People’s Procuracy.
Asanzo Case: Pham Van Tam Unexpectedly Pleads Guilty
The prosecutor emphasized the case’s complexity, citing the defendants’ demeanor as a significant factor.
The Asanzo Chairman: Evading Investigation?
In the indictment filed by the prosecution, Mr. Pham Van Tam, Chairman of Asanzo Company, was not only charged with tax evasion of over VND 15.7 billion but also with smuggling goods worth VND 414 million. Regarding the smuggling charge, the case file revealed statements alleging that Mr. Tam instructed his subordinates to evade cooperation with the police.
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The Ho Chi Minh City People’s Procuracy has issued an indictment charging the owner of Asanzo Company, Pham Van Tam, and his brother with smuggling and tax evasion.
