Vietnam's Ministry of Finance is planning to increase fines on tax evasion and errors in tax returns. Individuals who fail to file accurate returns will have to pay 20 percent of the shortfall as fine, double the current rate, if tax authorities find no mala fide intent. For organizations it is 40 percent, online newspaper Thoi bao kinh te Sai Gon reported, quoting from the draft. But for deliberate tax evasion and other frauds, the fine will be up to three times the shortfall. There will also be fines for other offences -- of VND100,000-1 million (US$4.8-48) for delaying filing of returns by one to 10 days and twice that if the delay is of 10-20 days. The fines will be be double for organizations. There could also be criminal charges for these offences. Like us on Facebook and scroll down to share your comment … [Read more...] about Vietnam eyes harsher penalties for tax evasion
Penalties for tax evasion
Vietnam victim of corporate tax evasion
Vietnam hoped foreign investment will bring benefits like economic growth and more jobs, but tax evasion by creative accounting is what it is getting A nationwide investigation into tax evasion found 83 percent of foreign companies used various tricks to minimize their tax liability last year. Inspectors from the Taxation General Department said they have ordered 720 out of 870 foreign enterprises to pay nearly VND400 billion (US$19 million) in back taxes and penalties for tax evasion. In some provinces like Bac Giang, Hoa Binh, and Gia Lai, 100 percent of foreign corporations are tax violators, the report said. The investigation found that the most popular tactic to evade taxes was profit shifting. The most common form of profit shifting was by manipulating transfer pricing to overstate costs when importing from units belonging to the same company in other countries and understate export values. The inspectors said the firms were overcharged for equipment and inputs by … [Read more...] about Vietnam victim of corporate tax evasion
HCMC agencies powerless to stop tax evasion
Following an August Sai Gon Giai Phong report on tax evasion by many Ho Chi Minh City businesses, the city's taxation and market management departments have verified numerous violations, but have appeared helpless to deal with the problem. Many companies don't issue value-added tax (VAT) invoices which record sales of goods and services worth over VND100,000 as required by law. In this way, companies are able to hide the origins of their goods from the tax department. Therefore, they also purchase their stock, much of which is illegally smuggled without tax invoices being issued. While investigating seven firms, inspectors recently found five giants selling illegally imported goods including mobile phones, hard disk drives, computer memory chips, video camera batteries and electric appliances. They included the Saigon Nguyen Kim Shopping Center, Thien Hoa Electric Center, De Nhat Phan Khang Company, Hoan Long Company and Manh Hung Company. Some large enterprises have even … [Read more...] about HCMC agencies powerless to stop tax evasion
Severe punishment needed for tax evasion: NA deputy
On the sidelines of the ongoing National Assembly (NA) session October 28 in Hanoi, at which deputies warned tax evasion has hurt the State exchequer, Sai Gon Giai Phong spoke with deputies about the widespread value-added tax (VAT) evasion it first reported on in August.Dr. Tran Du Lich, deputy head of the Ho Chi Minh City delegation to the NA: tax agencies' responsibility Dr. Lich: SGGP was accurate in reporting that the Government was losing considerable revenue due to tax fraud. It is an issue of great importance to the NA and Government and there is much concern over measures to increase tax revenue while ensuring a reasonable budget balance in the future. One of the most important long-term goals is to reduce cash payments. For the time being, the illegal purchase of VAT invoices must be strictly prohibited. Policy and management systems need to be reconsidered and the Law on Tax Management must be implemented more seriously as enterprises are doing business with three … [Read more...] about Severe punishment needed for tax evasion: NA deputy
Pay back taxes, court tells Uber
The HCM City People’s Court has dismissed a suit by the Dutch-based ride-hailing company Uber International Services Holding against the city tax department seeking remedy against a claim for back taxes.VnExpress.net electronic newspaper reported the court said Uber Viet Nam, a subsidiary of Uber International, “does not have the required legal status for such a case”.In September, the department ordered Uber to pay VND66.68 billion (US$2.94 million) in tax arrears and penalties for tax evasion by December 23.But the company only paid up VND13.3 billion ($586,000).The department then asked five local banks to appropriate more than VND53.38 billion ($2.35 million) from Uber’s accounts by January 10.Uber then filed the lawsuit against the department.On December 29, the department received a notice from the court to put on hold its appropriation from Uber.Now that the case has been dismissed, the tax authorities will proceed to collect the amount.Minister of … [Read more...] about Pay back taxes, court tells Uber