|
Golf courses accused of dodging tax
Golf course developers who build hotels, villas and commercial centers on their projects are evading tax, the “Golf Courses and Green Construction” conference in Hanoi heard Wednesday.
The conference heard tax and land lease rates for golf courses were much lower than what developers of hotels and other commercial developments had to pay.
Golf courses in Vietnam often have large areas set aside for non-golfing activities, such as hotels, villas, houses and commercial centers, even though the developers did not pay the same tax rate as other hotel and residential project developers, experts told the conference.
“Only 13 out of the 76 golf course projects underway in Vietnam offer pure golf services,” according a Vietnam Construction Association (VCA) report presented to the conference.
The actual golf course sometimes make up only 30 percent of the land on some projects, with the remaining 70 percent used for other more profitable services, said Professor Ton Gia Huyen, deputy chairman of the Vietnam Land Science Association.
Huyen said the golf course developers got away with their tax dodge because of Vietnamese authorities’ ineffective management of land tariff laws.
Tam Dao Golf and Resort in the northern province of Vinh Phuc was cited as an example. Developer Tam Dao Investments Holding Company has allocated half of the project’s 90 hectares to the construction of 290 villas that will be offered for sale.
Tam Dao Investments Holding Company stood to collect VND300 billion (US$17 million) from the sale of the 290 villa plots, recouping three-quarters of its initial outlay of VND400 billion ($22.5 million) on the project, according to Doctor Le Van Thien from the Hanoi Natural Sciences University.
VCA Chairman Tran Ngoc Hung confirmed an 18-hole golf course could cater for 180 golfers at a time. But most 18-hold golf projects in Vietnam included hotels capable of housing 1,000 people, as well as residential villas.
No country in the world has imposed limits on the size of golf courses or the types of services golf developments can offer, Hung said. However, the unusual situation in Vietnam may require an unusual solution, he said.
The conference heard Vietnam has 76 golf courses, with another 68 projects awaiting approval, to cater for around 5,000 golfers, only 200 of whom are Vietnamese.
A senior policeman told the meeting that most golf courses in Vietnam did not meet environmental protection regulations.
Vietnam has 76 golf courses, with another 68 projects awaiting approval, to cater for around 5,000 golfers, only 200 of whom are Vietnamese.
Do Huu Luc
vietnews
|
