Exporters use tricks to evade tax: authorities

By Phuong Dung   November 26, 2023 | 11:56 pm PT
Exporters use tricks to evade tax: authorities
Vietnamese banknotes are seen at a bank in Hanoi. Photo by VnExpress/Giang Huy
Export companies are resorting to various tricks to evade tax such as using illegal bills, the General Department of Taxation has discovered after inspecting on wood and rubber companies.

It found many cases of value-added tax evasion with exporters buying directly from farmers and not reporting the transaction to tax authorities.

Some companies owners would establish "intermediary companies" which often report small revenues to authorities, but the main export firm that sources inputs from these companies often buy large orders from them.

After inspecting 120 intermediary companies, the department has found 92% of them having suspended operation to avoid paying taxes.

The tax department also said that refunding tax to some businesses faces challenges as in many cases the foreign companies inspectors contacted said they never sold good to the Vietnamese company that is seeking a tax refund.

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