Businesses engaged in e-commerce that have not been audited or inspected for many years, as well as those enjoying tax exemptions or reductions, are also under scrutiny by tax inspectors in 2017.
This was a request made by Deputy Director General of the General Department of Taxation Cao Anh Tuan Phat at the online conference summarizing tax work in 2016 and implementing tasks for 2017 of the tax sector.
Accordingly, the focus of tax audits and inspections in 2017 will be on businesses with related-party transactions, those showing signs of transfer pricing; e-commerce businesses; businesses reporting continuous losses; businesses with large tax debts; businesses that have not been audited or inspected for many years; and businesses enjoying tax exemptions and reductions…
Regarding inspections, Mr. Cao Anh Tuan stated that key areas will include capital transfers, banking, pharmaceuticals, real estate, electricity, oil and gas, postal and telecommunications services, and minerals.
In addition, the Tax Department will also conduct thematic inspections and audits on tax refund procedures, especially the implementation of electronic tax refunds.
In 2016, the entire tax sector inspected and audited 84.472 businesses, resulting in a total increase in tax revenue of VND 17.164 billion; the amount of tax paid into the state budget was VND 11.907 billion. In particular, the tax sector focused its inspections and audits on businesses with high risk indicators regarding VAT refunds; businesses with related-party transactions; and businesses showing signs of transfer pricing…
Specifically for businesses with related-party transactions and signs of transfer pricing, tax authorities conducted inspections and audits of 329 businesses, collecting back taxes, refunds, and penalties totaling VND 607,52 billion, and reducing losses by VND 5.162,21 billion. Tax authorities transferred 2.776 cases to the police; the police handled 23 criminal cases, recommended the recovery of VND 1.159 billion, and arrested or detained 20 individuals suspected of tax evasion, tax law violations, and misappropriation of tax refunds.
