On the afternoon of 29/7, after a week of deliberation, the People's Court of District 16, Ho Chi Minh City (formerly Di An City), returned the case file for further investigation into issues surrounding Tan Tan Joint Stock Company (Tan Tan Company).

Mr. Tran Quoc Tan (center, in green shirt) with his brother and wife at the court. Photo: Quoc Thang

Mr. Tran Quoc Tan (center, in green shirt) with his brother and wife at the court. Photo: Quoc Thang

Mr. Tan, 66, is accused of non-compliance with a court ruling and tax evasion. His wife, Chau Ngoc Phung, 54, and brother, Tran Quoc Tuan, 57, are charged with non-compliance with a court ruling.

The court wants to clarify Mr. Tan and Ms. Phung’s testimony that the company operated as a family business, with his wife and brother as shareholders, but under his sole control. Between 2013 and 2019, the company reportedly held no shareholder meetings.

In 2019, Ms. Nguyen Thi Thanh, 62, who holds 45.83% of the company's shares, convened a shareholders' meeting that resulted in a resolution removing Mr. Tan from his position. Mr. Tan and his wife claim they had delegated authority to another individual to enforce the court ruling at that time.

The court requested further investigation into the 2019 company resolution and the alleged delegation of authority by Mr. Tan and Ms. Phung. "Therefore, it is necessary to re-investigate to clarify the resolution issued by the company in 2019 and to clarify the authorization of the execution of the judgment by the defendants Tan and Phung," the Court stated.

The court also requested the People's Procuracy clarify the tax authority's tax settlement inspection and Tan Tan Company's responsibility for tax evasion.

Furthermore, the court requested clarification of the contents of the appraisal request number 5101 dated 20/3/2025, due to indications of accounting violations with serious consequences.

During last week's trial, the procuracy upheld the indictment, recommending a sentence of one year to one year and three months for Mr. Tan for non-compliance with a court ruling and three to three and a half years for tax evasion, totaling four to four years and 9 months imprisonment.

Mr. Tuan faces a recommended sentence of six to 9 months in prison, suspended. Ms. Phung faces 9 to 12 months.

Mr. Tan admitted to leasing the factory and warehouse of Tan Tan Trading - Production - Cultivation Company (a subsidiary) without issuing invoices or declaring revenue, violating regulations. "At that time, I was unable to pay taxes because the company's invoices had been revoked, and creditors were constantly harassing my home," Mr. Tan explained.

Tan Tan Company, located in Binh An ward, Di An city, has three shareholders. Mr. Tan owns 6,400,000 shares (80%), while Ms. Phung and Mr. Tuan each hold 10%. At its peak, the company had over 140 distributors, over 40,000 retail points in most supermarkets and shopping malls, accounting for 80% of the domestic market share. Tan Tan products were also exported to the US, Australia, China, Japan, Russia, Sweden, Taiwan, and Hong Kong.

The indictment states that on 5/7/2011, Mr. Tan signed a contract to transfer 3,666,666 personal shares to Ms. Nguyen Thi Thanh, 62, from Ho Chi Minh City for 36.6 billion VND (10,000 VND/share). The company then issued a share ownership certificate of 45.83% to Ms. Thanh.

Ms. Thanh subsequently requested the board of directors convene an extraordinary general meeting to re-elect the board, provide business information, and financial reports, which Mr. Tan ignored. In November 2015, she filed a lawsuit with the Binh Duong provincial People’s Court.

On 27/9/2018, the court ruled that Tan Tan Company’s board (Mr. and Ms. Tan and Mr. Tuan) must convene an extraordinary general meeting to re-elect the board according to the law. The company, represented by Mr. Tan, also had to grant Ms. Thanh access to company records, minutes, board resolutions, and periodic financial reports.

After the judgment took effect, on 14/6/2019, the Binh Duong Provincial Civil Enforcement Department issued a decision to enforce the judgment. However, Mr. Tan, Ms. Phung, and Mr. Tuan did not comply, despite having the means to do so. In September 2020, the department issued a compulsory enforcement decision, which they continued to ignore. Seven months later, the department recommended prosecuting the three for non-compliance.

Regarding the tax evasion charge, the indictment states that between July 2015 and November 2022, Mr. Tan leased factory space and warehouses under his ownership in Binh Duc neighborhood, Binh Hoa ward, Thuan An city, Binh Duong province (now Ho Chi Minh City), also the headquarters of Tan Tan Company, to various organizations and individuals.

Throughout this period, Mr. Tan allegedly only issued cash receipts without value-added tax invoices, failing to declare or pay taxes as required by law. The total lease amount was over 8.6 billion VND, with nearly 1.5 billion VND in unpaid taxes.

Quoc Thang