On December 11, information from the General Department of Taxation and tax authority management data showed that the situation of enterprises abandoning their business addresses tended to increase in the period from 2021 to 2023.
This may stem from many objective reasons such as the COVID-19 pandemic leading to a situation where businesses have to stop production and business activities due to social distancing and cannot carry out procedures to terminate business activities.
However, in reality, a number of enterprises take advantage of loopholes in the law, taking advantage of the flexibility in regulations on establishing new enterprises to abandon their business addresses for the purpose of tax evasion or establishing enterprises to illegally buy and sell invoices.
To strengthen tax management and prevent businesses from absconding with invoices, leading to many consequences in management, the General Department of Taxation's leaders said that it is necessary to evaluate tax management on this issue.
According to Ms. Le Thi Duyen Hai - Director of the Department of Tax Declaration and Accounting, through reviewing and assessing the above situation, there have been many policy solutions such as amending and supplementing regulations on the Enterprise Law, the Decree on Business Registration; amending and supplementing the Decree on electronic invoice management.
However, management practices still have complex problems that need further research to come up with management solutions.
Some Tax Departments also discussed solutions to this problem such as: Risk management, comparing electronic invoices with value added tax declarations, inspections at tax offices, tax settlement inspections as well as coordination with police agencies in investigating and handling businesses that abandon their business addresses with signs of tax evasion and illegal invoice trading.
Mr. Mai Son - Deputy General Director of the General Department of Taxation - requested that local Tax Departments need to review, classify, evaluate and immediately handle according to regulations for enterprises not operating at their business address, enterprises that have stopped operating but have not completed tax code closure procedures.
"The General Department's leaders assigned the Tax Declaration and Accounting Department to take the lead in closely coordinating with professional units under the General Department of Taxation to strengthen tax management for enterprises not operating at their business addresses, enterprises that have stopped operating but have not completed tax code closure procedures" - Deputy General Director Mai Son suggested.
