Asanzo chairman Phạm Văn Tam appears in court in HCM City on September 17. — VNA/VNS Photo

HCM CITY — The chairman of Vietnamese electronics firm Asanzo Group has been sentenced to four years and six months in prison and fined VNĐ2 billion (US$82,000) for smuggling and tax evasion, a HCM City court ruled on Wednesday.

According to the verdict, Phạm Văn Tam was found guilty of smuggling imported goods and failing to issue invoices or declare taxes on assembled products sold domestically. 

He was convicted on charges of smuggling and tax evasion, with the court citing the unlawful import and sale of electronics under the Asanzo brand between 2017 and mid-2019.

The court found that Asanzo evaded over VNĐ15.7 billion in taxes during that period, including VNĐ4.1 billion in value-added tax (VAT) and VNĐ11.5 billion in special consumption tax. 

The company reportedly purchased components from domestic firms, outsourced manufacturing, and assembled air conditioners without issuing tax invoices or recording sales in official accounts.

In a separate offense, Tam was linked to the smuggling of 1,300 glass ovens from China, falsely declared as spare parts worth VNĐ212 million.

Customs officials, however, discovered that the shipment consisted of fully assembled, brand-new products worth over VNĐ414 million, leading to a denial of customs clearance and a referral to law enforcement.

Phạm Xuân Tình, CEO of Asanzo and Tam’s younger brother, was sentenced to two years and six months in prison for tax evasion. 

Both defendants admitted to the charges in court and had voluntarily repaid the entire amount of illicit gains before trial, which the court considered as mitigating factors.

During his final statement, Tam expressed remorse, saying the company’s mission was to provide affordable electronics to lower-income consumers.

He acknowledged the errors in tax compliance, stating: “Paying taxes is the responsibility of every business. We made mistakes, and I hope to return home soon to continue contributing to society.”

The trial marks the conclusion of a high-profile case that has drawn public attention since allegations first surfaced in 2019. 

The case was transferred to police after the HCM City Tax Department initiated an investigation in October, 2019, prompting Asanzo to repay the tax debts in full in March 2020. — VNS