Hoa Sen Group was sanctioned for violation of tax regulations by the Tax Department of Bình Dương Province, with a total fine and tax arrears of more than VNĐ2.8 billion (US$119,174), the company said on March 21.

 

In a decision dated March 13 sent to Hoa Sen Group, the Tax Department of Bình Dương Province said that the steel producer has misreported revenue, expenses and other incomes for 2020-2021, leading to underpayment of corporate income tax (CIT) and VAT of VNĐ2.08 billion to the State budget.

 

Therefore, Hoa Sen Group is fined VNĐ415.76 million for the violations. And besides the unpaid amount of CIT and VAT, the company also has to pay for the late payment VNĐ317.6 million.

 

The final payment for fine and tax arrears is VNĐ2.81 billion. 

 

In a recent General Meeting of Shareholders 2022-2023, Lê Phước Vũ, chairman of the Board of Director of Hoa Sen Group, said that even though the steel industry struggled with declining demand, supply chain disruptions, and volatility of materials prices last year, the company still recorded a net revenue of VNĐ49.7 trillion, exceeding the set plan. 

 

He also expected that challenges will last in 2023 and even into 2024, due to higher interest rates in the domestic market, the prolonged war between Russia and Ukraine, and strong fluctuations of input materials prices. 

 

Moreover, the US Federal Reserve just hiked its benchmark rates by 0.25 basis points.

 

In the first quarter of the financial year 2022/23, from October 1, 2022, to December 31, 2022, Hoa Sen Group posted a revenue of over VNĐ7.9 trillion, a decrease of 53.2 per cent year-on-year.

 

It experienced another loss of VNĐ680.2 billion in profit after tax during the period after seeing a profit of VNĐ638.3 billion in the same period of the previous year.

 

In the stock market, Hoa Sen Group is listed on the southern bourse - Hồ Chí Minh Stock Exchange (HoSE). The steel producer's shares were traded at VNĐ15,900 per share on Friday — VNS