On the afternoon of 2/7, Nguyen Thi Thu Huong, 37, and two suppliers, Ngo Quoc Phu, 30, and To Lan Phuong, 45, were tried by the Hanoi Area 2 People's Court on charges of tax evasion.
Huong was a well-known figure in the online second-hand luxury goods market for years, specializing in used items from brands like Versace, Louis Vuitton, Cartier, and Hermes. However, she never registered her business.
Huong instructed customers not to include product names in bank transfer details, only their name and phone number, with payments directed to her husband's account. When an inspection was imminent, Huong asked someone to delete all data from her sales computer to destroy evidence.
Authorities allege that her total undeclared revenue over 5 years, until June 2025, amounted to 835 billion VND, resulting in 12,5 billion VND in evaded taxes.
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From left: defendants Huong, Phuong, Phu at the court this afternoon. Photo: Danh Lam |
Huong admitted her actions in court, stating she initially bought second-hand items for personal use before starting to sell them. When she began her business, Huong claimed she "didn't know" she needed to register or pay taxes.
"I only thought it was buying from one person and selling to another for a profit, so I didn't think it was a business requiring tax declarations," Huong testified.
The defendant explained that her employees were hired hourly to pack orders and were not tasked with finding customers. Her buyers were a loyal customer base who interacted through the Facebook Fanpage "Hycloset new things by hy". She stated that during her business operations, she "didn't know what to do" regarding business registration and tax payments, and had not yet managed to complete the process.
Huong is currently out on bail and continues her business, stating she has now declared taxes. She requested a fine instead of imprisonment to continue her work, contribute to society, and emphasized her deep understanding of her wrongdoing.
Similarly, Huong's two suppliers also claimed "limited awareness," stating they were unaware this type of business required tax payments. Defendant Phuong mentioned she was a homemaker, engaging in business "to earn extra income." However, the Procuracy determined Phuong's hidden revenue was estimated at over 10 billion VND.
Addressing the defendants' claims of "ignorance," the Trial Panel noted that all three individuals were over 18 years old, possessed full legal awareness, and were therefore obligated to understand and research laws before engaging in any activity.
"You cannot break the law for years and then claim ignorance. No one is obligated to come to your home and tell you what to do. Business owners are naturally expected to understand the law," the court emphasized.
A representative from the Procuracy considered that the consequences had been remedied. They recommended the court allow the defendants to pay fines instead of serving prison sentences. Specifically, Huong was proposed to pay 2,5-2,7 billion VND, Phu 500-550 million VND, and Phuong 150-200 million VND. All defendants represented themselves without legal counsel.
The trial continues.
Hai Thu
