Investigation of insurance companies shows irregularities: MoF

Several large oil and gas companies have accumulated large amounts of debt in environmental protection tax, said the Ministry of Finance. VNA/VNS Photo

HÀ NỘI – Eight out of ten insurance companies in Việt Nam were investigated by the Ministry of Finance (MoF) in 2023, including AIA, Dai-ichi, Manulife, Prudential, MB Ageas, Sun Life and BIDV Metlife, said Doãn Thanh Tuấn, deputy head of the Department of Insurance Supervisory Authority under the MoF, with investigations into the remaining two to produce result before the end of the Lunar New Year. 

According to the ministry, the results of the inspections on four insurance companies: Prudential, MB Ageas, Sun Life and BIDV Metlife, have shown various irregularities in insurance sales through bank channels, especially in the consultation process by bank employees and brokers.

Typical violations were not providing sufficient consultation to customers, not following through until procedures were completed, failing to provide customers with a full understanding of the insurance products, allowing free agents and bank employees to use agent codes, and not following the insurance premiums approved by the Ministry of Finance.

In addition, MoF announced a plan to investigate another six insurance companies this year, during a quarterly conference yesterday in Hà Nội. 

Regarding a large amount of tax debt owed by large oil and gas companies, deputy director-general of the General Department of Taxation Mai Sơn said nearly ten major oil and gas companies in Việt Nam had tax debts, mostly related to environmental protection taxes.

“Companies are allowed to calculate and pay taxes on their own according to regulations. The tax authorities inspect, supervise and urge declaration and payment. Our general department has urged the recovery of tax debts from companies in general, including oil and gas companies,” Sơn said.

Responding to questions on how to collect the tax debts, the general department said measures, ranging from taking over companies’ accounts and invoices, to banning companies’ executives from leaving the country, had been taken to prevent losses to the state budget.

According to the general department, a top priority for the country’s tax authority in 2024 is to establish a database of financial reports to help enforce the country’s tax laws.

Deputy Minister of Finance Nguyễn Đức Chi said, for the most part, tax authority allowed companies to self-declare and pay taxes by themselves with the authority overseeing the process. Managing cash flow was the responsibility of the companies, and violations would be handled according to current laws and regulations. 

Several large oil and gas companies have been named for tax arrears in 2023, such as Xuyên Việt Oil Company with nearly VNĐ1.53 trillion, accounting for nearly 20 per cent of the taxes owed to HCM City Tax Department. In particular, the environmental protection tax alone amounted to nearly VNĐ1.25 trillion.

Thái Bình Province’s tax department also named Hải Hà Inland Waterway Transport Company Limited with the largest tax debt, up to VNĐ1.78 trillion, also mainly consisting of environmental protection tax. After the company failed to meet their tax obligations, the department proposed a ban on the company’s executives from leaving the country.

Nam Sông Hậu Petroleum Trading and Investment Joint Stock Company had a tax debt of over VNĐ1 trillion. Explaining the reason for the tax debt, the company stated that the fluctuation in the oil and gas business in 2022 resulted in heavy losses for the company. After several unanswered payment requests, the Hậu Giang Province’s tax department deducted money from the company’s account and froze all accounts belonging to companies with tax debts in the area. VNS