Suddenly became the director of a tax evasion company

Illustration: NGOC THANH

Specifically, Mr. Thanh became the legal representative of Loc Loc Wood Trading Construction Company Limited (Thu Duc City), with revenue on electronic invoices sold from 2022 to June 2024 of more than 60 billion VND but was not declared on the value added tax declaration.

The notice requires Mr. Thanh to contact the tax authority to work, otherwise "tax management measures will be applied and tax case reports and files will be forwarded for prosecution for tax law violations".

However, Mr. Thanh said that he was not the owner of Loc Loc Wood Company and that his personal information may have been illegally taken by someone else to use the company's name.

Mr. Thanh also said that he had come to work with the Thu Duc City tax authority and "affirmed that he did not establish, work or operate, lease or borrow documents in the company's name, and did not have any contact information related to the above company". The incident caused Mr. Thanh to lose sleep, had to take time off work to travel back and forth, and incurred expenses.

"Not to mention the impact on my mental health and the health of myself and my family. In general, it affects many aspects of life. I'm really worried because I got involved in something out of nowhere," said Mr. Thanh.

In mid-April 2025, Mr. Thanh suddenly received a request to go to the tax authority to fulfill the tax obligations of a company that he had absolutely nothing to do with.

Speaking with Tuoi Tre, a representative of the tax authority said that Loc Loc Wood Trading Construction Company Limited was listed as high risk by the Thu Duc City tax team because after its establishment, it issued a series of invoices with high sales but did not submit tax declarations.

Specifically, from 2022 to June 2024, this enterprise has issued electronic invoices with a total revenue of over 60 billion VND.

After detecting signs of risk, the Thu Duc City tax team went down to inspect the business, but the business was not operating at the business address.

Therefore, the tax authority issued a notice of absconding to this enterprise and sent a notice letter to invite the enterprise's legal representative, Mr. Tran Nghia Thanh, to work.

The tax authority also said that they had only invited Mr. Thanh to fulfill his tax and invoice obligations, but had not yet calculated taxes or recorded debts, so Mr. Thanh had not been listed as a tax debtor and had not been notified of a temporary suspension of exit from the country.

However, Mr. Thanh needs to file a complaint about having his information taken to establish a "ghost" business and issue a large number of invoices to the police and the Department of Finance, including a clear commitment so that these agencies have a basis for resolution.

With Loc Loc Wood Company, after verifying and finding that this business was not operating at the registered business address, the tax authority blocked the issuance of invoices and issued a warning on the system, and the tax authority transferred this business to status 06 (not operating at the registered business address), and at the same time transferred the file to the police.

Recently, many cases have been discovered where information was used to become directors or legal representatives of some strange business, and some cases were even banned from leaving the country.

Therefore, many experts suggest that tax authorities need to coordinate to check and compare citizen identification with VNeID of the Ministry of Public Security to determine whether this individual exists or not.

To limit the risk of newly established enterprises using illegal invoices, management agencies need to complete regulations on registration and approval of the use of electronic invoices in the direction that before granting the right to use electronic invoices to newly established enterprises, tax authorities need to have enough time to clarify the enterprise's information, especially the information of the legal representative.

In addition, it is necessary to carefully control the identity of the legal representative (identification code, biometrics...) when granting a license, ensuring that there is no case of illegal use of another person's citizen identification to establish a business.

Identification information, bank account, and phone number of the legal representative must also be associated with the tax code.

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Source: https://tuoitre.vn/bong-dung-thanh-giam-doc-cong-ty-tron-thue-20250423230456154.htm