City collects trillions in tax arrears

Since the beginning of the year, the Ho Chi Minh City Tax Department has thoroughly inspected around 1,320 foreign direct investment (FDI) businesses and collected VND2.462 trillion in back taxes, overcoming tax losses by VND2.511 trillion.

Of the sixteen FDI businesses inspected, mainly in the garment industry, tax collectors collected VND11.3 billion in tax arrears. Tax authorities said that these firms had been evading taxes by raising prices of raw material while lowering selling price.

After these tax inspections, the numbers of businesses reporting losses have dropped sharply. However, the tax department revealed that there were still some companies which report losses, though annual revenues have increased and operations are continually expanding. As tax authorities do not have enough evidence, they continue to keep a close watch on these companies and will slap a penalty on any case of violation.

By Do Linh – Translated by Thuy Doan

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