The HCM City’s District 1 Tax Department has instructed banks to seize VNĐ148 billion from the accounts of Nguyễn Kim company to pay for back taxes and fines. – Photo plo.vn Viet Nam News HCM CITY — The HCM City’s District 1 Tax Department has sent instructions to banks to seize VNĐ148 billion (US$6.46 billion) from Nguyễn Kim Joint-Stock Company for back taxes and fines the company owes. The company improperly manipulated the amount of personal income tax its employees had to pay over the past 10 years, according to the tax department. The department asked the company to pay by July 13 VNĐ104.74 billion in personal income taxes that are in arrears. It also said the company had to pay VNĐ19.41 billion in fines for administrative violations and another VNĐ24.18 billion for late tax payments. Because the company did not make the payments willingly, instructions were sent to banks on July 13 to seize the amount from … [Read more...] about Banks to seize US$6.46 billion in back taxes, fines from Nguyễn Kim
The Hanoi Department of Taxation has just issued a fine of nearly VND1 billion ($44,000) to Traphaco JSC (code: TRA) and VND5.5 billion ($242,300) to Vietnam Electric Cable Corporation (Cadivi, code: CAV) for erroneous tax declaration. This is the four consecutive years that Traphaco was fined for tax arrears Due to the erroneous declaration of value-added tax (VAT) and corporate income tax (CIT), Traphaco was fined for 20 per cent of the difference between its declared and actual tax obligations, equalling VND159 million ($7,000), according to Article 1 of the Law on Amendments and Supplements of Articles of the Law on Tax Administration. The company’s tax burden increased by VND795 million ($35,000) after the inspection, including VND715 million ($31,500) in CIT and VND80 million ($3,500) in VAT. Traphaco also has to pay VND20 million ($880) in penalty for late payment (as of June 15, 2018). Traphaco has to calculate and pay the additional late payment fees applicable … [Read more...] about Traphaco and Cadivi fined for tax arrears
VietNamNet Bridge - More countries want to collect taxes from multinational technology groups like Google and Facebook, but the problem they face is how to do it. The global and local media has reported that the Indonesian government decided to collect tax arrears for the past 5 years from Google, estimated at over $400 million for 2015 alone. Indonesia is the first Southeast Asian nation that will collect tax arrears from Google. Earlier this year, Google's head office in Paris was inspected by the local government, with the request of paying $1.76 billion in tax arrears. In 2013, the UK accused Google of tax evasion. In recent years, the question whether Google and Facebook has dodged or evaded taxes and how to collect taxes from these groups has been repeatedly raised. In Vietnam, advertising on Google and Facebook is done via two methods: through agents and online transactions. For the first method, only a few firms have registered and paid taxes for the services. For the … [Read more...] about Google faces tax penalties in Indonesia – does it pay tax in Vietnam?
Prime Minister Nguyen Tan Dung pledged to offer tax extensions and simplify payment procedures on the heels of more bad news about business closures and suspensions. The Ministry of Investment and Planning reported that the number of businesses who either declared bankruptcy or suspended their registrations hit 37,612 in the first seven months this year, up 9.8 percent from the same period last year. PM Dung then pledged to offer the tax relief measures to save businesses in turmoil. He said the solutions may include value-added tax extensions for equipment imports and income tax extensions for contractors working on state-funded projects which have suffered stagnant disbursement from the troubled state budget. The government leader said his cabinet will propose that the legislature approve more income tax support for businesses working in supporting industries and projects worth at least VND12 trillion. Do Hoang Anh Tuan, Vice Minister of Finance, said the efforts will not only focus … [Read more...] about Vietnam to extend taxes as more firms shut doors
The Finance Ministry has proposed relieving struggling businesses from a huge amount of tax debts to stem a rising tide of shutdowns and bankruptcy filings. Bui Van Nam, director of the General Department of Taxation, said unpaid taxes and overdue tax penalties rose to more than VND60.9 trillion (US$2.88 billion) by the end of December 2013--a 10.64 percent increase year-on-year. The arrears had climbed a further VND7.5 trillion by the end of May. On Thursday, an unidentified ministry official told Tuoi Tre that around VND6.54 trillion ($308.41 million) of taxes and penalties are expected to be cleared. "In many cases, penalties for late tax payments have surpassed the taxes themselves… putting more pressure on the tax payers," the official said. Penalties for overdue taxes hit 9.75 trillion by July 2013--15 percent of all owed tax money. Private firms owe 62 percent of all tax penalties. The ministry reported that the situation for local businesses hasn't really improved. Most … [Read more...] about Vietnam considers clearing $300 mil in back taxes to save economy