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?
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
Law firm DFDL Legal and Tax's senior tax manager Phan Thi Lieu writes that it is essential that taxpayers know their rights and obligations regarding an expected escalation in tax audits. We can expect this to continue due to the increasing pressure to achieve tax revenues. The more pressure on tax authorities in terms of tax revenue targets, the more frequent tax audits, more aggressive enforcement, adjustments, with increased potential for penalties and interest to be applied. Undergoing a tax audit is usually challenging for taxpayers, especially those who are reactive in their tax risk management process. Putting in place a proactive tax risk management process is a good starting point to reduce potential tax exposure, or avoid tax disputes resulting from a tax audit. This includes management of the tax issues and resolution process towards a best possible outcome. The re-assessment of tax liabilities by tax authorities after a tax audit may expose the taxpayer to … [Read more...] about How best to avoid taxing situations
Chinese dissident artist Ai Weiwei said on Wednesday police had warned him to stay away from a court hearing his company's lawsuit challenging a demand for 15 million yuan ($2.4 million) for tax evasion. Beijing's Chaoyang District Court agreed last month to hear the case brought by the company that markets Ai's work, a departure from consistent refusal by the courts, strictly controlled by the ruling Communist Party, to give dissidents any hearing. His supporters say the case has been trumped up, part of a drive to muzzle the outspoken social critic. The hearing was still in progress late in the evening. Ai said that despite the courts' acceptance of his lawsuit, police warned him not to attend the hearing, and sent several patrol cars to park outside the studio where he lives. "'You can never make it. Don't even try,'" Ai, 55, said police told him. They gave no reason. "This nation can have anything, they can have a satellite that goes to the sky and the moon, but they can … [Read more...] about Chinese police warn Ai Weiwei to avoid tax hearing
A land use tax conundrum has developed for many home buyers in Ho Chi Minh City’s Phu My Hung Urban Area. Those who purchased properties several years ago are being asked to pay tax on much higher evaluations because of the delay in receiving titles from the developers. In some instances, the taxes amount to a significant proportion of the property value, putting them beyond the buyers’ reach. Land use and property titles can be registered only if the tax is paid. Truong Ngoc Hanh bought a 95-square meter apartment at the My Vien Project in 2006. Over the past three years whenever she asked about her land and house titles, she was told by the developer to wait. The wait was finally over about two months ago. But together with the good news came a land tax bill of more than VND490 million (US$27,500). Hanh was given one month to clear the debt or pay a daily fine of 0.05 percent of the total bill, or around VND250,000. Hanh said as she could not afford the tax bill … [Read more...] about Not fair, say homeowners stuck with huge land use tax bills