Arrest of Hanoi Woman in Major Tax Evasion Case
A woman from Hanoi has been taken into custody for allegedly evading taxes on over VND834 billion (approximately US$32 million) in online sales of luxury items. The individual, identified as Nguyen Thi Thu Huong, is accused of failing to report and pay taxes on her e-commerce activities involving high-end products such as handbags, watches, diamonds, and other premium goods.
According to local authorities, the police arrested Huong on July 10 on suspicion of tax evasion. Alongside her, six employees who were involved in various aspects of the business, including order processing, packaging, customer communication, and advertising, were also questioned. This marks a significant step in the investigation into the operations of her online business.
Huong operated an e-commerce platform under the brand name Hycloset – New things by hy. She used social media platforms to sell luxury accessories and fashion items. Since 2020, she has been offering products from well-known brands such as Versace, Louis Vuitton, Cartier, and Hermes. These items included handbags, watches, and diamonds, which are typically associated with high-value transactions.
Authorities estimate that the business generated revenue exceeding VND834 billion. However, it is alleged that Huong did not properly declare this income or pay the corresponding taxes. As a result, she is suspected of evading approximately VND12.5 billion ($490,000) in taxes.
The police conducted a raid on Huong’s residence, her livestream sales location, and her warehouse on July 9. During the operation, they seized nearly VND10 billion ($392,000) worth of luxury goods, including handbags, watches, diamonds, and other accessories. Many of these items were found without proper invoices or documentation proving their origin.
This case highlights the growing concerns around tax compliance in the e-commerce sector, particularly for businesses operating through social media platforms. With the rise of online shopping, more individuals are engaging in retail activities without adhering to traditional tax regulations. This incident serves as a reminder of the importance of transparency and accountability in digital commerce.
The arrest of Huong and her employees underscores the efforts being made by law enforcement to address tax evasion in the online market. It also raises questions about how businesses can navigate the complexities of taxation when operating outside traditional retail structures. As more consumers turn to online platforms for luxury goods, there is a pressing need for clearer guidelines and stricter enforcement to ensure fair practices across the industry.
In addition to the financial implications, the case has sparked discussions about consumer awareness. Many buyers may not be aware of the potential legal risks associated with purchasing from unregistered or unlicensed sellers. This situation emphasizes the importance of verifying the legitimacy of online retailers before making purchases, especially for high-value items.
As the investigation continues, further details about Huong’s business operations and the extent of her tax evasion may come to light. The outcome of this case could have broader implications for how similar businesses are regulated in the future. It also serves as a cautionary tale for others engaged in online retail, reminding them of the legal responsibilities that come with running a business, no matter how small or large it may be.
