HCMC agencies helpless in checking tax evasion

Since Sai Gon Giai Phong reported about tax evasion by many businesses in Ho Chi Minh City in August, the city’s taxation and market management departments have been going around to verify tax payments by enterprises but have been unable to detect violations.

A banner at a computer shop in HCMC’s District 1 says the shop issues a tax-paid invoice to buyers. But most businesses do not issue the invoice and falsely report losses to evade tax, but authorities are unable to catch them red-handed (Photo: SGGP)

Inspectors faced difficulties in carrying out the task.
Most firms do not have their head offices at the address they registered when setting up business that the inspectors could not access their records at the registered premises.
They have their warehouses at secret locations that goods could not be properly checked.
Sai Gon Giai Phong went along with the inspectors and found them lax at their job, often inspecting only one shop owned by a business though many of them have several shops.
They did not check the goods in stock against those in companies’ records.
They only found goods without labels but none with fake labels of origin.
Even profitable businesses resort to reporting losses to avoid paying tax, helped by the fact they often do not issue VAT invoices for their sales. 

Related articles:
City leader tells tax agency to check evasion
HCMC companies evade tax with impunity

By Han Ni – Translated by Hoang Yen

Other news