Tax fraud at many Nghe An enterprises is at a high level

On the morning of May 22, the Steering Committee for Anti-Smuggling, Trade Fraud and Counterfeit Goods (Steering Committee 389) of Nghe An province held a meeting to evaluate the work of anti-smuggling, trade fraud and counterfeit goods in the first quarter of 2019, deploy tasks for 2019 and emulation and reward work in 2018. Comrade Le Hong Vinh - Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Committee, Head of the Steering Committee chaired the meeting. Photo: Pham Bang

Complex developments, sophisticated tricks

At the meeting, Mr. Tran Dang Ninh - Director of the Market Management Department, Deputy Standing Committee of Steering Committee 389 said that in the first quarter of 2019, the sectors organized inspections and penalties for 2,916 cases, with a total fine value of more than 60 billion VND.

“Although the number of inspections, handling cases and collection amounts have decreased compared to the same period in 2018, there are some cases with the largest scale and complexity ever (drugs, firecrackers), and there are cases related to foreign elements (the case involving 18,111 tons of cement with signs of counterfeit labels),” Mr. Ninh said, affirming that violations of the law in the trading and transportation of smuggled, banned, counterfeit and fraudulent goods in the province are still complicated, with increasingly sophisticated methods and tricks.

Colonel Nguyen Manh Hung - Deputy Director of the Provincial Police Department suggested strengthening the fight against tax losses in enterprises. Photo: Pham Bang

Violations mainly include trading in prohibited goods, smuggled goods, and poor quality goods; violating intellectual property rights, infringing on trademark rights; fraudulent business, tax evasion, illegal purchase and sale of invoices, and trading in poor quality gasoline and oil.

According to Steering Committee 389, the subjects often divide and tear apart goods, transport them during rush hours or late at night or early in the morning to avoid the authorities. The situation of legalizing smuggled goods by using false sales invoices, using fake invoices, and rotating invoices for many shipments is very common.

In addition, many subjects also produce and trade counterfeit goods of branded brands, especially cosmetics, chemical products, sanitary equipment, fashion products, etc.

High tax fraud

At the meeting, members and representatives of various sectors shared the view that the situation of trade fraud and smuggling is very complicated, inspection and handling have achieved positive results but this is only the tip of the iceberg, the level of punishment is not enough to deter. While the behavior of many businesses and subjects is increasingly sophisticated, sanctions, support tools, technical equipment as well as professional qualifications of officials are still inadequate.

Mr. Nguyen Hong Hai - Deputy Director of the Provincial Tax Department pointed out that tax fraud at enterprises in the area is happening quite a lot. Photo: Pham Bang

Notably, Mr. Nguyen Hong Hai - Deputy Director of the Provincial Tax Department raised the issue of tax fraud that worried many delegates. According to Mr. Hai, from 2018 to now, the Tax Department has conducted 1,834 inspections and imposed fines of more than 270 billion VND.

“Export enterprises, mineral exploitation enterprises, real estate enterprises, and foreign-invested enterprises are committing tax fraud with huge amounts of money. For example, tin mining enterprises are exploiting more than the permitted reserve, then illegally selling it, causing huge tax losses and resource losses,” said Mr. Hai.

Vinh Tax Department officers check against motorbike tax loss. Photo: Archive

Affirming that the fight against smuggling, trade fraud and counterfeit goods is extremely difficult, comrade Le Hong Vinh - Vice Chairman of the Provincial People's Committee said that the sectors need to coordinate closely and regularly exchange information with each other in the inspection and handling work. For businesses trading in violating goods, there needs to be a mechanism to prevent the source of goods from the source.

The Vice Chairman of the Provincial People's Committee requested the Public Security, Market Management, Taxation... to strengthen inspection and examination work according to their functions and tasks to promptly detect acts of smuggling, trade fraud, and tax fraud. Thereby, preventing tax losses, ensuring legitimate rights for consumers, and creating an equal business environment among enterprises and business households.

Comrade Le Hong Vinh - Vice Chairman of the Provincial People's Committee awarded Certificates of Merit to 5 collectives and 5 individuals for their achievements in the fight against smuggling, trade fraud and counterfeit goods in 2018. Photo: Pham Bang

Comrade Le Hong Vinh - Vice Chairman of the Provincial People's Committee awarded Certificates of Merit from the National Steering Committee 389 to 3 groups and 6 individuals for their outstanding achievements in the fight against smuggling, trade fraud and counterfeit goods in 2018. Photo: Pham Bang

On this occasion, the National Steering Committee 389 awarded Certificates of Merit to 3 groups and 6 individuals for their outstanding achievements in the fight against smuggling, trade fraud and counterfeit goods in 2018. The Chairman of Nghe An Provincial People's Committee also awarded Certificates of Merit to 5 groups and 5 individuals for their achievements in the fight against smuggling, trade fraud and counterfeit goods in 2018.