Deputy general director of the Department of Taxation Cao Anh Tuan toldKinh te Dau tu (Economics and Investment) newspaper the Government isgoing to tighten control of bill printing by companies.
* Quite a few enterprises were found to be taking advantage of aloophole in Government Decree 51 allowing enterprises to print their ownbills. Can you elaborate on the tax evasion committed by theseenterprises?
The first thing I should say here isthat a number of organisations and individuals have used illegal bills,containing activities they have not undertaken, to claim their taxrebates from the State budget.
Since January 1,2011, when Decree 51/2010/ND-CP came into force, instead of buying billsfrom the taxation office as was done in the past, enterprises andorganisation could print their bills themselves or order bills fromprinting companies.
As a result, this dramaticallyreduced cases of fraudulent behaviour. However, recently many have beendetected using fraudulent bills, leading to a very serious dilemma.
To protect the State from further losses, the Ministry of Finance hasasked the Government to revise Decree 51 and other guiding documents toaddress the situation.
While waiting for therevisions, the ministry has instructed customs and taxation offices toconduct regular inspections to prevent tax fraud.
*While waiting for amendments to Decree 51, what activities does theministry need to take to prevent and stop the use of illegal bills?
The ministry has instructed local taxation offices to classifyhigh-risk enterprises for tax fraudulence and tighten the management ofbills issued by enterprises located in areas that don't have theproducts mentioned in the bills or any suspicious business activities.
Regarding businesses who received special treatmentin relation to the VAT, such as those dealing with rubber, coffee,cashew nuts, MoF has requested taxation offices in those localities toramp up inspections at these companies until the end of this year.
The ministry has stated clearly that at least 60 percent of enterprises on the inspection list are high risk enterprises.
* What have been the results of inspections so far?
In 2012, taxation offices nationwide inspected 55,850 enterprises, an extra 11 percent compared with the previous year.
The sum of money they re-collected and fined was around 11.6 trillionVND (552 million USD) - an increase of 17 percent compared with 2011.
All in all they added some 6.5 trillion VND (309 million USD) to the State budget.
In the first eight months of 2013, some 36,650 enterprises wereinspected and around 6.5 trillion VND was re-possessed from fraudulentcompanies.
An important thing I just want tomention here, for newly set up enterprises (less than 12 months old),they can have their bills printed with permission from the taxationoffices in their localities. But, they have to file a monthly report ontheir use of the bills.
* Can you talk a bit about what amendments will be included in Decree 51?
What ever changes are to be made to Decree 51, the Ministry of Financewants to enable all organisations and individuals to engage in businessactivities and ensure a level playing field. It has also resolved tostep up the fight against tax fraudulence.
Based onthese principles, the ministry has proposed that suspicious enterprisescommitting tax fraud or high tax risk enterprises will be prohibitedfrom printing their own bills. Instead they will have to buy bills fromtaxation offices.
However, for the first billorder, enterprises will have to register and seek approval from the taxauthorities. These requirements will be clearly stated in the revisedDecree 51.
In the guiding documents, the Ministryof Finance will also state clearly that for enterprises with over 15billion VND (0.7 million USD) in registered capital and “clean”activities will be allowed to print their own bills.
Other enterprises will have to buy their bills from taxation officesin the first year of operation. From the 2nd year onwards, they will beassessed by the taxation offices. If their business are clean they willbe allowed to print their own bills.-VNA
* Quite a few enterprises were found to be taking advantage of aloophole in Government Decree 51 allowing enterprises to print their ownbills. Can you elaborate on the tax evasion committed by theseenterprises?
The first thing I should say here isthat a number of organisations and individuals have used illegal bills,containing activities they have not undertaken, to claim their taxrebates from the State budget.
Since January 1,2011, when Decree 51/2010/ND-CP came into force, instead of buying billsfrom the taxation office as was done in the past, enterprises andorganisation could print their bills themselves or order bills fromprinting companies.
As a result, this dramaticallyreduced cases of fraudulent behaviour. However, recently many have beendetected using fraudulent bills, leading to a very serious dilemma.
To protect the State from further losses, the Ministry of Finance hasasked the Government to revise Decree 51 and other guiding documents toaddress the situation.
While waiting for therevisions, the ministry has instructed customs and taxation offices toconduct regular inspections to prevent tax fraud.
*While waiting for amendments to Decree 51, what activities does theministry need to take to prevent and stop the use of illegal bills?
The ministry has instructed local taxation offices to classifyhigh-risk enterprises for tax fraudulence and tighten the management ofbills issued by enterprises located in areas that don't have theproducts mentioned in the bills or any suspicious business activities.
Regarding businesses who received special treatmentin relation to the VAT, such as those dealing with rubber, coffee,cashew nuts, MoF has requested taxation offices in those localities toramp up inspections at these companies until the end of this year.
The ministry has stated clearly that at least 60 percent of enterprises on the inspection list are high risk enterprises.
* What have been the results of inspections so far?
In 2012, taxation offices nationwide inspected 55,850 enterprises, an extra 11 percent compared with the previous year.
The sum of money they re-collected and fined was around 11.6 trillionVND (552 million USD) - an increase of 17 percent compared with 2011.
All in all they added some 6.5 trillion VND (309 million USD) to the State budget.
In the first eight months of 2013, some 36,650 enterprises wereinspected and around 6.5 trillion VND was re-possessed from fraudulentcompanies.
An important thing I just want tomention here, for newly set up enterprises (less than 12 months old),they can have their bills printed with permission from the taxationoffices in their localities. But, they have to file a monthly report ontheir use of the bills.
* Can you talk a bit about what amendments will be included in Decree 51?
What ever changes are to be made to Decree 51, the Ministry of Financewants to enable all organisations and individuals to engage in businessactivities and ensure a level playing field. It has also resolved tostep up the fight against tax fraudulence.
Based onthese principles, the ministry has proposed that suspicious enterprisescommitting tax fraud or high tax risk enterprises will be prohibitedfrom printing their own bills. Instead they will have to buy bills fromtaxation offices.
However, for the first billorder, enterprises will have to register and seek approval from the taxauthorities. These requirements will be clearly stated in the revisedDecree 51.
In the guiding documents, the Ministryof Finance will also state clearly that for enterprises with over 15billion VND (0.7 million USD) in registered capital and “clean”activities will be allowed to print their own bills.
Other enterprises will have to buy their bills from taxation officesin the first year of operation. From the 2nd year onwards, they will beassessed by the taxation offices. If their business are clean they willbe allowed to print their own bills.-VNA
