Prime Minister Nguyen Xuan Phuc has assigned the Ministry of Finance (MOF) and General Department of Taxation (GDT) to study media reports on transfer pricing of foreign direct investment (FDI) enterprises and tax policy. Media reports have suggested the Government to build a more effective mechanism to tackle the problem that prolonged loss-making FDI enterprises have still enlarged investment and production. - Photo cafebiz.vn Media outlets have reported that the number of FDI enterprises reporting losses during 2012-16 accounted for 44-51 per cent of total enterprises, a sign which may indicate transfer pricing. However, it can be difficult to know the truth as the tax authority is not empowered to investigate. The report in Tuoi tre (Youth) newspaper pointed out a fashionable transfer pricing strategy is through intra-firm parent debt or related-party loans, following which firms borrowed from their parent companies or affiliates with excessive interest expenses. Other … [Read more...] about PM tells authorities to investigate tax evasion
Investigating for tax evasion
FACT: The IRS reports that tax evasion is a widespread problem that grows each year costing the government an estimated $350 billion in unpaid taxes and creating a tax gap that grows by 10% each year. FACT: The additional tax burden falls on shoulders of honest Americans. FACT: Public services that are supported by tax dollars are affected as well. FACT: Buying into tax evasion schemes can and will be costly, either in civil or criminal penalties or both, even imprisonment.The Internal Revenue Service has identified small business and sole proprietorship owners as the largest contributors to the tax gap. Without significant investigations, there is no way for the government to control skimming or non-reported income by individuals who are self-employed or run small businesses.While there are huge tax evasion activities happening all over the world, it has been estimated that the United States Government has collected roughly $350 billion less than it is owed by American taxpayers. … [Read more...] about How to Think Like a Tax Lawyer – Be Aware of Costly Tax Evasion Schemes to Avoid IRS Tax Problems
Handing over the right of prosecution and investigation to tax authorities may halt tax evasion? Authorities powerless in face of tax evasion by foreign firms In reality, despite the fact that foreign firms are acquiring massive annual revenue and profit from their operations in Vietnam, the local government faces difficulties in collecting tax from them, as could be seen with the examples of Uber and booking sites Agoda, Booking.com, and Traveloka. A number of these enterprises have been delaying tax payments, while others took advantage of loopholes to evade tax obligations. Notably, in late January 2017, the Ministry of Finance (MoF) asked booking sites that allow tourists to book hotel rooms in Vietnam to calculate and pay VAT and CIT. Targeted websites include Agoda, Traveloka, Booking, and Expedia. The CIT rate is 5 per cent of the total revenue. VAT is calculated on the added value that the companies, called “the foreign contractor” by the ministry, make. MoF … [Read more...] about Extending mandate of tax authorities may halt tax evasion?
The Korean authorities’ investigation into tax evasion at the country’s fourth biggest group, LG Group is causing a stir. The corporation promises full cooperation, as it did in Vietnam, when LG Electronics Vietnam Co., Ltd. was caught out by tax authorities. LG Group's headquaters in Korea's Seoul capital city. Photo: baotintuc.vn A huge stir inspection A scandal related to the heiress of Korean Air Lines Co., Ltd., former Korean Air Lines executive Cho Hyun Min ealier this year has stirred up public anger at the behaviour of the rich and powerful, and sparked investigation into her family and its business. In the morning of May 9, Korean public prosecutors paid a surprise visit to LG Group’s headquarters to investigate accusations of tax evasion made by employees. Reuters stated that the public prosecutors are investigating allegations that LG Group has dodged paying $9.25 billion in taxes in a deal related to a subsidiary’s transferring … [Read more...] about LG Group investigated over tax evasion allegations
On December 26, 2018, the agency in coordination with the Traffic Police Agency and relevant agencies under the ministry arrested five leaders of Yen Khanh Company branch in Long An province which was allowed to collect fee at the toolbooth. Five tax- dodgers are Ngo Ba Thang; director of the company branch; Tran Van Mien, deputy director and head of Cho Dem toll station; To Phuoc Hung, chief accountant of Yen Khanh Company, Nguyen Thi Kim Hue, accountant and Nguyen van Hien, director of Xuan Phi Technical Company. After searching their houses, authorized agencies collected some documents and online evidences related to the illegal trade and use of software to evade taxes and cause budget loss. Currently, the ministry is expanding investigation to trial violators and reclaim state assets. Yen Khanh Company was established in 2005, headquartered at 35-37 Ngo Duc Ke, Ben Nghe ward, District 1, HCMC. Chairwoman of the company Vu Thi Hoan has also been arrested. Since being … [Read more...] about Five people arrested for tax evasion at HCMC-Trung Luong tollbooth
Lawyer Tran Vu Hai (Source: vnexpress.net) Hanoi (VNA) – The investigation agency of Khanh Hoa province’s Police has started legal proceedings against Tran Vu Hai, head of the law firm Tran Vu Hai, and his accomplices on a charge of “tax evasion”, the Ministry of Public Security announced on July 2. On July 2, investigators searched Hai’s home and working place. Based on investigation results and collected documents, the agency decided to commence proceedings against Hai; Ngo Tuyet Phuong, Hai’s wife and Director of the Hanoi Law Company in Hanoi; Nguyen Thi Ngoc Hanh, residing in Vinh Hai ward, Nha Trang city, Khanh Hoa province; and Ngo Van Lam, residing in Ngoc Hiep ward, Nha Trang city. All were charged with “tax evasion” as regulated at Article 161 of the 1999 Penal Code (revised in 2009). They are banned from leaving their residence in Hanoi and the country. The agency is expanding investigations on the case to clarify … [Read more...] about Legal proceedings against lawyer Tran Vu Hai on tax evasion