The Shocking 182 Billion VND Tax Debt Scandal: Uncovering the Masterminds Behind the Case That Rocked Ho Chi Minh City and Alerted Interpol

The recently released tax debt list by the Ho Chi Minh City Tax Department has named Vo Thi Ngoc Phuong with a debt of nearly VND 159 billion and Lam Phuoc Hai with over VND 23 billion. The unusual commonality is that both have business addresses registered at the 5-star Sheraton Saigon Hotel. However, the origins of these debts stem from a business system that collapsed in 2012.

The story began between 2009 and 2012 when Tran Anh Tuan, a Vietnamese-American tycoon, operated two high-end fashion stores, Milano and Gucci, located in prime spots within the Sheraton Hotel. These were popular destinations for Ho Chi Minh City’s elite, offering luxury European brands like Gucci, Dolce & Gabbana, and YSL.

To maximize profits, an import model was designed to circumvent tax regulations. Instead of declaring the true origin from Italy, goods were manipulated to appear as Chinese-made or unbranded products. This tactic significantly reduced customs declarations, evading substantial import taxes.

To operate this scheme and conceal his ownership, Tuan did not register the businesses under his name. Instead, a network of legal entities was used. Vo Thi Ngoc Phuong was enlisted to register Milano, and Lam Phuoc Hai for Gucci. Additionally, companies like Nam De LLC, Gia Phat Thanh, and Milanovina were established to handle import commissions.

The system operated smoothly until November 27, 2012, when authorities inspected and seized a large shipment being moved into the hotel’s basement. The confiscated goods, valued at over VND 16 billion with 1,253 authentic items, were declared on customs forms as worth only USD 3,725 for 1,052 unbranded items.

Following the exposure, the actual operator, Tran Anh Tuan, fled abroad. Ho Chi Minh City Police issued a nationwide arrest warrant and requested Interpol Vietnam to issue an international warrant for Tuan. The case went to trial in 2015, with involved individuals, including employees and customs officers, facing criminal charges.

However, in civil and tax matters, liability remained with the registered legal entities. Despite not being the actual owners, Phuong and Hai, as heads of the registered businesses, bore the full tax debt. From initial debts of VND 44 billion and VND 6.9 billion, late payment penalties ballooned the totals to nearly VND 159 billion and VND 23 billion, respectively.

This case serves as a classic lesson on the risks of “nominal ownership” in business. It also highlights the long-term financial consequences that can persist decades after a criminal case concludes, burdening individuals on paper and leaving a challenging debt for the state budget.