The General Department of Taxation has directed that businesses engaging in fraudulent activities, such as exploiting individuals' information to declare and calculate salary and wage expenses for the purpose of tax evasion and reducing their tax obligations to the state budget, be strictly prevented and dealt with.
The General Department of Taxation has directed the Tax Departments of provinces and centrally-administered cities, as well as the Tax Departments of large enterprises, to implement solutions to strengthen personal income tax management.
Fraudulent activities, such as misusing personal information to declare or calculate payroll expenses.
According to the General Department of Taxation, in recent times, tax authorities have received several complaints regarding cases where businesses use personal information (Name, Tax Identification Number, Citizen Identification Number) to declare and calculate salary and wage expenses when determining corporate income tax obligations, even though no actual income was paid to those individuals.
This is a violation of tax laws, aimed at defrauding businesses and reducing their tax liability. It also negatively impacts individual taxpayers by allowing businesses to use their personal information without authorization.
Impact on individuals' tax filing.
Accordingly, to ensure the rights of taxpayers and to prevent and strictly handle businesses that commit fraud and exploit personal information to declare and calculate salary and wage expenses for the purpose of tax evasion and reducing tax obligations to the State budget, the General Department of Taxation requests that the Tax Departments continue to implement the directives of the General Department of Taxation in Official Letter No. 4172/TCT-DNNCN dated September 20, 2023, on accelerating the processing of personal income tax refund applications and Official Letter No. 5862/TCT-TTKT dated December 22, 2023, on focusing on personal income tax inspection during the implementation of tax audits and inspections.
Strengthening communication and upgrading applications for managing personal income tax.
Strengthening communication and support for taxpayers: Continue to strengthen communication and warnings to businesses about the unauthorized use of personal information to falsely declare the number of employees, falsify labor costs, etc., which is a violation of civil, administrative, and criminal laws; businesses that make false declarations will be tracked and monitored by the tax authorities, and will be processed according to tax and related laws (if there are signs of criminal law violations).
Continue to promote awareness campaigns so that individuals are informed about the benefits of reviewing and standardizing their personal tax identification numbers (TINs) according to their Citizen Identification Card/National Identity Card/Personal Identification Number; and about how to look up taxpayer information at the provided link. https://tracuunnt.gdt.gov.vn; and the benefits of using an electronic tax transaction account issued by the tax authority, installing the eTax Mobile application on a smartphone, and looking up information about income sources on the eTax Mobile application to ensure full and accurate control over one's own income sources.
In addition, the General Department of Taxation announced that it has upgraded the functions for aggregating tax settlement data, searching and managing income sources, etc., on the TMS and eTax Mobile applications to support tax authorities at all levels in processing and resolving personal income tax settlement dossiers.
Therefore, the General Department of Taxation requests that the Tax Departments study and utilize the functions on the IT system to serve the inspection and supervision of personal income tax finalization dossiers, as well as to better support and serve taxpayers.
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