How Did Kim Chung Gold Shop Evade Taxes Despite Earning 5 Trillion VND in 5 Years and Paying Only 10 Million VND Monthly?

The Thanh Hoa Provincial Police Department’s Criminal Investigation Division has issued arrest warrants and prosecution decisions against the owners of Kim Chung Jewelry Store and one of their employees, who is also their nephew, on charges of “Tax Evasion.”

According to the Thanh Hoa Provincial Police, investigations revealed that from 2020 onwards, the owners of Kim Chung Jewelry Store instructed their employees to create dozens of personal accounts to conduct gold transactions, aiming to evade taxes and conceal the company’s income, resulting in significant losses for the state.

Over a five-year period (2020-2025), Kim Chung’s revenue reached 5 trillion VND, yet they only paid approximately 10 million VND in taxes each month.

Notably, before arresting the owners of Kim Chung Jewelry Store, the Thanh Hoa Provincial Police conducted simultaneous inspections at Kim Chung (219 Le Hoan) and other jewelry companies: Kim Lien, Lan Huong, Long To…

Regarding this case, Mr. Dong Minh Hong, Director of DVL Accounting and Tax Services Company, noted that there are many similar tax evasion cases like Kim Chung Jewelry Store. This practice has been carried out by business owners and online sellers for many years.

According to Mr. Hong, a common method of tax evasion is that when selling goods, businesses or online sellers often instruct buyers to transfer payments to employees’ or relatives’ accounts to hide revenue. Additionally, businesses purchase invoices from “ghost” companies to declare input VAT deductions without actual goods or services.

Furthermore, businesses and online sellers violate tax laws by maintaining two sets of accounting books with inconsistent data. One set reflects actual revenue for internal reporting, while the other declares significantly lower revenue to tax authorities, reducing tax liabilities and causing state budget losses.

Ms. Tran Thi Cam Hong, Director of VIFATAXC Tax Consulting and Services Company, mentioned another tax evasion tactic where business owners create fake contracts and acceptance records with affiliated companies to claim expenses for advertising, client entertainment, consulting, and brokerage commissions, thereby reducing corporate income tax.

Meanwhile, some tax officials or businesses may evade taxes by using “loss-making services.” For example, Company A sells goods to Company B at a loss on paper to reduce corporate income tax. Later, Company B, an affiliate of Company A, withdraws the money…