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
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
War on tax evasion squeezes crisis-hit Italians
Tempers are fraying at Italy's tax offices, as higher bills and a government clamp-down on evaders has driven recession-hit Italians to vent their anger on the country's most hated institution. Demonstrators face riot police "There's no end to it. Each day the noose tightens around our necks, and the more they tighten the screws, the less we can pay," one young businessman Gianbattista Tagliani told AFP. "The government wants to recover taxes too quickly." Tagliani, who owns a media monitoring firm, has come to one of the Equitalia tax collection counters in Rome to pay 5,000 euros (USD6,250) in overdue social security contributions. The irony, he says, is that the State is one of his clients -- and it currently owes him 20,000 euros. But as it always pays him up to six months late for his services, he has had to find the 5,000 he owes them elsewhere. "On the other hand, celebrities like (motorcycle racer champion) Valentino Rossi say, 'Okay, I'll pay up now, if you give me … [Read more...] about War on tax evasion squeezes crisis-hit Italians
Lawmakers debate tax procedures, bonds
HA NOI — The National Assembly Standing Committee yesterday discussed draft amendments to the Law on Tax Administration, as well as proposed allocation of Government bond proceeds to traffic, irrigation, health and education projects. Minister of Finance Vuong Dinh Hue said amendments to the Law on Tax Administration were aimed at reducing tax collection losses, preventing tax evasion and modernising administrative procedures. New provisions would address fines and penalties for tax evasion and revised tax payment procedures. National Assembly Chairman Nguyen Sinh Hung blamed increased tax evasion on dwindling tax collections, calling for the rights and responsibilities of taxpayers and tax officials to be made clear - along with strict punitive measures. But National Assembly Finance and Budget Committee chairman Phung Quoc Hien said many of the articles in the draft law were too general, including conditions for tax debt clearance and penalties. He stressed that, to ensure … [Read more...] about Lawmakers debate tax procedures, bonds