Prosecution of the Director of T.U.N.G Dining Restaurant for Tax Evasion of More Than VND 2.4 Billion

The People’s Procuracy of Hanoi has completed an indictment prosecuting Mr. Hoàng Tùng, Director of T.U.N.G Dining Restaurant Co., Ltd., together with Ms. Nguyễn Đỗ Nguyệt Ánh—a shareholder and co-operator of the restaurant—for the offense of “Tax Evasion” under Article 200 of the 2015 Criminal Code (as amended and supplemented in 2017).

Violations

According to the indictment, from 2019 to 2023, T.U.N.G Dining generated actual revenue of more than VND 53 billion, but declared only over VND 29.4 billion to the tax authorities.

The undeclared revenue exceeded VND 23.5 billion, which was allegedly received directly into the personal bank accounts of Mr. Tùng and Ms. Ánh.

Notably, customer payments made via bank transfer were deposited into personal accounts instead of the company’s account, while no invoices were issued, the transactions were not recorded in accounting books, and no taxes were declared or paid in accordance with the law.

Tax authorities determined that the amount of evaded tax exceeded VND 2.4 billion, including more than VND 2.1 billion in value-added tax (VAT) and over VND 335 million in corporate income tax (CIT).

Accordingly, the defendants’ conduct falls under violations specified in Points b and c, Clause 1, Article 200 of the 2015 Criminal Code (as amended in 2017), namely:

• “Failing to record revenues related to the determination of payable tax amounts in accounting books”;
• “Failing to issue invoices upon the sale of goods or provision of services, or recording invoice values lower than the actual payment value of the goods or services sold.”

Legal basis and penalty framework

Under Clause 3, Article 200 of the 2015 Criminal Code (as amended in 2017):

“A person who commits tax evasion involving an amount of VND 1 billion or more shall be subject to a fine ranging from VND 1.5 billion to VND 4.5 billion or imprisonment from 02 to 07 years.”

With an evaded tax amount of more than VND 2.4 billion, the acts of Mr. Hoàng Tùng and Ms. Nguyễn Đỗ Nguyệt Ánh fall under Clause 3, Article 200, which is the most severe penalty bracket for this offense.

Specifically, each defendant may face:

• A fine from VND 1.5 billion to VND 4.5 billion, or
• Imprisonment from 02 to 07 years.

In addition to the principal penalty, the court may also impose additional penalties, including:

• A fine from VND 20 million to VND 100 million;
• A ban from holding certain positions, practicing certain professions, or performing certain jobs for 01 to 05 years;
• Or confiscation of part or all of the assets.

If the commercial legal entity (T.U.N.G Dining Restaurant Co., Ltd.) is also determined to have committed the offense, then under Clause 5, Article 200, the company may be subject to:

• A fine from VND 3 billion to VND 10 billion, or
• Suspension of operations for a period from 06 months to 03 years

Mitigating circumstances

According to investigation authorities, Mr. Hoàng Tùng and Ms. Nguyễn Đỗ Nguyệt Ánh have voluntarily paid the full amount of evaded taxes, demonstrating cooperation and sincere repentance. This constitutes a mitigating circumstance under Article 51 of the 2015 Criminal Code (as amended in 2017) and may be considered for sentence reduction.

Assessment

The T.U.N.G Dining case serves as a strong warning to businesses—particularly in the food and beverage sector—that personal bank accounts must never be used to receive business revenue.

All revenues and expenditures must be conducted through company accounts, invoices must be issued in accordance with regulations, and tax obligations must be fully and accurately declared.

Attempts to “avoid” taxes, as seen in the T.U.N.G Dining case, can escalate into criminal liability, with severe penalties that may include up to 07 years of imprisonment.