Businesses take advantage of 'death' to evade taxes

Regarding the provision of information and coordination of business management, the Ministry of Finance recently sent a noteworthy document to the Ministry of Planning and Investment.

According to this document, recently there have been cases of individuals taking advantage of the ease of procedures for establishing, operating, suspending, ceasing operations, dissolving, and bankrupting enterprises... to establish and operate many operating enterprises, or taking advantage of the suspension, ceasing operations, dissolving, and bankrupting of enterprises to commit tax fraud.

The Ministry of Finance said that there are 49 enterprises that have been operating in import and export for less than one year since their establishment and have announced temporary suspension, cessation of operations, dissolution, or bankruptcy.

There are 1,043 enterprises that have abandoned their business addresses and stopped import-export activities for 6 months or more, calculated from the time of their last import-export activities.

There are 15,379 enterprises that have not had import-export activities for 6 months or more without notifying the business authorities of their temporary suspension or cessation of operations, but their information on the system is "in operation".

24 violating enterprises were discovered by the customs authority, issued a decision to determine tax, and required the enterprises to submit additional tax payment documents.

To avoid tax liability, many businesses abandon their business addresses, declare dissolution, bankruptcy or register to temporarily suspend or cease operations.

However, to avoid tax obligations, these businesses have abandoned their business addresses, announced dissolution, bankruptcy or registered to temporarily suspend or cease operations.

The General Department of Customs' report also shows that there are 8 enterprises that still owe 12.5 billion VND in import-export tax and have no information confirming tax debt at the customs agency, but have information about dissolution on the national data system.

"Subjects often use tricks such as using their own name or hiring others to use their own name to establish many businesses to participate in import-export activities. After a period of operation, if there is a risk of being discovered for fraud, they will temporarily suspend operations and switch to other business activities, or use import-export businesses simultaneously or alternately to avoid inspection and control by customs authorities; or when violations are discovered by authorities, they will stop operations and abandon their business addresses to evade tax obligations or legal responsibilities...", the Ministry of Finance stated the reality.

Therefore, the Ministry of Finance requested the Ministry of Planning and Investment to study and perfect the mechanism for establishing and managing enterprises to overcome the situation of enterprises taking advantage of fraud.

During the time when a mechanism for coordination, exchange and provision of information for business management has not been established, the Ministry of Finance requests the Ministry of Planning and Investment to assign a focal unit to coordinate with the General Department of Customs to provide information on the situation of temporarily suspended, dissolved, bankrupt businesses, etc.

According to VnEconomy