Four-star Duxton Hotel Saigon has spotted a
small road to escape bankruptcy.
The
Ministry of Finance (MoF) has ordered Ho Chi Minh City Tax Office to
temporarily stop forcing the hotel owner to transfer all its small bank
deposits to the State Treasury to pay a giant tax bill.
The
move is an 11th hour reprieve for Vinametric Company, a wholly-owned subsidiary
of Singapore's Low Keng Huat Company and also the owner of Duxton Hotel Saigon.
The
order follows a Vinametric's document asking for the MoF's help after the Ho
Chi Minh City Tax Office asked the company to transfer all its bank deposits to
the State Treasury in order to collect VND110.4 billion ($5.3 million) in tax
arrears, including a VND68.7 billion ($3.3 million) late payment penalty during
2006-2009.
The sum
relates to a management fee to run an electronic gaming business. Duxton Hotel
Saigon stopped this business in 2010 after allowing Vietnamese enter the
facility, violating electronic gaming legal regulations.
"This
is a positive sign for us at this time. At least, it helps us continue
maintaining the operation of the hotel until the ministry issues a new
decision," said Dang Di Nghia, general director of Duxton Hotel Saigon.
The
198-room Duxton Hotel Saigon is one of the most luxurious hotels in Vietnam's
largest city. But, Nghia said the tax office's decision would be a killer blow
for the firm.
Till
April 17, the tax office collected VND56 billion ($2.6 million) from the
company's bank deposits, Nghia said.
"The
entire hotel's income was transferred to the State Treasury. We don't have any
money to pay suppliers and staffs salaries," he added.
At
present, Nghia said Duxton Hotel Saigon owned 187 suppliers, including
Coca-Cola Vietnam, PepsiCo Vietnam, Metro Cash & Carry and the Phu Thai
Group, about VND14 billion ($673,000).
Ngoc
Linh | vir.com.vn
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment