Enterprises Need To Improve Tax Compliance With Tax Laws

According to Deloitte Vietnam's tax expert, the violation of tax laws of many enterprises will impair the attractiveness of the investment environment in Vietnam. Enterprises need to improve compliance to avoid the implications of tax law violations. The business will become "victims" from its tax law violations. Artwork: TL Many consequences from violations of tax laws under the heavy impact of Covid-19 pandemic, the inspection and tax examination are considered an effective tool to offset the budget deficiency at Many countries, including Vietnam. In 2021, the Ministry of Finance and the General Department of Taxation continued to complete the provisions of the Law on Tax Administration; Review, research, amend and supplement tax legal documents and tax administration in the extensive direction of revenue, improve management capacity, prevention of fraud, tax evasion, anti-budget revenue State (state budget)

. It is noted, in 2020, in order to create conditions for businesses to focus on restoring production and business, tax authorities have the advocacy to restrict tax inspection inspection at enterprises, but numbers Tax collection from the inspection inspector still increased nearly VND 1,000 billion compared to 2019. This proves that violating tax laws are still common. There have been many enterprises facing the public sanctioning of tax laws violations
This can be considered a "deterrent" measure from the tax authority to the provinces of enterprises before the business implications facing when not complying with tax laws. The analysis of the consequences of the onions VI Violation of tax law, Mr. Bui Tuan Minh - Deputy General Director of Deloitte Vietnam tax consultancy said that, first of all, the business itself will be "victims" from their own violations. In addition to the revenue tax amount, the enterprise also has to pay fines and corresponding remittance. Therefore, the amount of taxes that enterprises are entitled to the state budget through inspections and tests may be much greater than the amount of tax payable according to regulations, when enterprises comply with tax laws. This amount is not small, especially in the context of the enterprise that is solving the problem of financial difficulties in service of production and business activities due to the influence of Covid-19 pandemic. Treatment and prestige of enterprises are also reduced, especially for companies listed on the stock market, or preparing to offer securities for the first time (IPO). For example, recently a listed enterprise on HOSE Stock Exchange has been subject to TP Tax Department. Ho Chi Minh Traced nearly 400 billion taxes, applying tax-enforcement measures and bills. Prior to this information, the stock of the enterprise was introduced to the warning, leading to the market price of the enterprise to significantly reduced
On the authorities, to handle tax-based violations towards transparency and decisions More intelligent, the tax authorities have shifted some cases to investigate agencies to continue to clarify and examine criminal liability. In addition, the non-compliance with tax regulations will create a direct impaired system State budget revenue. When the budget is deficished because the enterprise does not comply with the right handing of tax obligations will affect the financial resources for the implementation of the Government's socio-economic goals. Also according to the expert of Deloitte, From the long-term macro perspective, the violation of tax laws of many resonant enterprises will affect the market, degrade the attractiveness of the investment environment in Vietnam. Transparency, fairness and subcutiveness law is one of the important factors for investors to decide when considering investing in countries. Violating the tax law is the factor that interferes with fair competition among businesses that complies with good and poor compliance. The initiative to review and check "business health" regularly to enterprises Improving compliance to avoid the implications of tax law violations, Mr. Bui Tuan Minh said that businesses should take initiative to review and check "business health" on a regular basis. Time with solutions to overcome incurred tax issues. This review should be done periodically at least 1 year / time, covering tax shares to have a plan to improve compliance and reduce risk Violation of tax laws. Especially enterprises operating in the fields of retail business, construction, production and business of motorbikes and multi-industry enterprises; Enterprises have capital transfer activities, with link transactions accounting for a large proportion or businesses are entitled to tax incentives, ... will be concentrated by tax agencies in charge of tax inspection and examination in 2021.Theo Circular 31 / 2021 / TT-BTC on risk management in tax administration takes effect from 2/7/2021, the tax authority has publicized criteria for assessing tax compliance, criteria for classification of risks of risks Enterprises to conduct assessment and distribution of enterprises according to violations to apply measures

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