The Department of Taxation in Phu Yen Province announced that the JRD Vietnam Manufactory Automobile Company had taken advantage of loopholes to evade taxes since 2007,now owing the government VND3 billion.
The wholly Malaysian invested IRD Vietnam Manufactory Automobile Company based in Phu Long village of An My commune in Tuy An District of Phu Yen Province has used administrative loopholes in Government's policies on tax incentives to evade taxes, accumulating a tax debt of VND3 billion (US$150,000).
The Department of Taxation stated that it will force the company to pay the tax debt as well as face a penalty fine.
The department also discovered that the company had been making illegal invoices to evade VND3.5 billion (US$175,000) in taxes.
The department reported the misappropriation by the Vietnam Manufactory Automobile Company to police authorities for further investigation.
Administrative loopholes in tax incentives have been exploited by many companies. It is difficult to recover a debt from companies if they exploit the system and evade taxes, said Nguyen Thi Cuc, Chairwoman of the Tax Consultancy Association.