Da Nang Tax Sector Innovates to Collect Budget Effectively - Part 2: Preventing Revenue Loss in Key Areas

To limit the loss of budget revenue, the city's tax sector focuses on inspection and examination, especially in high-risk areas, while also doing a good job of debt management and tax debt enforcement.

Activities at the "One-stop" department of the Thanh Khe - Lien Chieu Regional Tax Department. Photo: MAI QUE

Ensure correct and full collection

Many topics on preventing tax losses have been and are being implemented by the tax sector and related units and have achieved many remarkable results, notably the topics: violations of invoices, enterprises with related-party transactions, value-added tax refund fraud, services (food and beverage, accommodation), e-commerce, real estate, etc., especially preventing tax losses of enterprises with related-party transactions.

According to the assessment of the Da Nang Tax Department, in the process of tax declaration, there were some errors in which enterprises were not exempted but still declared that they were exempted; when preparing documents on related party transactions, accountants at enterprises often missed tax codes, chose the wrong country of the related party, determined the relationship between the parties incorrectly, and accounted for costs related to related party transactions that did not meet regulations... In 2024, the Tax Department conducted 117 inspections and examinations of enterprises with related party transactions, collected and fined 155 billion VND.

In addition to handling major violations, the topic of preventing e-commerce revenue loss has been focused on recently in the context of online shopping becoming increasingly dominant. According to the City Tax Department, based on the tax industry database, in 2024, the entire industry received information from 4,223 taxpayers (455 enterprises and 3,768 individuals and business households) doing business on e-commerce platforms and reviewed 2,938 taxpayers, accounting for 70%.

The review results showed that 197 taxpayers had not incurred additional tax payable; 2,741 individuals and business households generated a total revenue of VND942.8 billion, with tax payable of VND18.09 billion. Through working, many individuals and business households paid taxes after the review, however, there were still violations, so the Tax Department handled administrative violations against 20 individuals, business households, and 8 enterprises with a total of additional tax, fines, and late payment fees of VND845 million.

In 2024, the tax departments in the city have developed a plan to prevent revenue loss from real estate transfer activities. As a result, the Tax Department invited to work and proposed to adjust the transfer price and tax calculation price for 487 cases of submitting declarations of real estate transfer prices that were inconsistent with the actual transfer price on the market, thereby determining an additional obligation of VND 10.6 billion.

For the service sector: the tax sector completed 44 inspections of food and beverage businesses, collected and fined VND3.6 billion; completed 26 inspections of accommodation businesses, collected and fined VND19 billion; completed 74 inspections of construction material businesses, collected and fined more than VND13 billion.

In addition to the above topics on preventing tax losses, based on the actual situation in the management area, tax branches have developed plans to prevent tax losses and exploit revenue sources for a number of areas such as: Hai Chau District Tax Branch exploits revenue from construction activities outside the province, through review, requested 119 enterprises to pay taxes with a total amount of 14.6 billion VND.

Thanh Khe - Lien Chieu Tax Department fights against revenue loss in gold, silver and precious stone trading activities. After checking, it requested 44 units to pay taxes of 1.56 billion VND; exploiting revenue from construction activities outside the province, after checking, it requested 49 enterprises to pay taxes with a total amount of 19.4 billion VND. Son Tra - Ngu Hanh Son Tax Department exploits revenue from construction activities outside the province, condotel hotels and apartments. After checking, it requested 121 units to pay taxes with a total amount of 117 billion VND...

Continue to implement solutions

Along with the results achieved, the Tax Department said that there are still many cases of tax declarations that are not in accordance with regulations, under-declared revenue compared to reality, falsely declaring input value-added tax compared to data on received invoices. In addition, tax management for e-commerce business activities still has many difficulties such as: information on subjects participating in activities on the platform is anonymous, making it difficult for tax authorities to contact and work; payment transactions on websites are mainly through personal accounts, cash payments, etc., leading to the inability to accurately determine revenue and transaction value.

According to the representative of the City Police, in order to improve the effectiveness of the fight against fraud and tax evasion in e-commerce activities, the City Police will strengthen coordination with relevant units to inspect and review businesses with signs of forgery in business registration, irregularities in the use of invoices and tax declarations; and strengthen inspection and control of business activities and product promotion on the internet.

In the tourism sector, Ms. Truong Thi Hong Hanh, Director of the Department of Tourism, said that it is still difficult to prevent tax losses because the penalty for businesses that do not submit statistical reports is very low. Specifically, according to Decree No. 45/2019/ND-CP dated May 21, 2019, which stipulates administrative sanctions for violations in the tourism sector, individuals are only fined 1-3 million VND and organizations are double, without specific regulations on violations of false declarations. In addition, the work of declaring international and domestic guests' accommodation with the police is not unified and synchronized, but each unit declares on different systems. Some risks of tax losses include accommodation establishments and restaurants not issuing invoices; travel branches are not responsible for reporting statistics to the Department of Tourism, which can easily lead to hidden revenue...

To prevent tax losses, the department requires units to compile statistics according to tourism industry indicators in accordance with regulations, and proactively monitor tourism businesses to provide information to the Tax Department when they suspect a large number of visitors but do not declare their business or declare incorrectly; and increase inspections and penalties for units that do not submit statistical reports.

According to Mr. Pham Duc Thuong, Director of the Da Nang Tax Department, in the coming time, the unit will continue to monitor and update information related to production and business activities, tax declaration and payment of enterprises, ensuring consistency and closeness to business reality; promptly urge and request enterprises to fulfill their budget obligations, minimizing outstanding debts; promptly grasp the difficulties and problems of enterprises and people to have solutions to support and remove difficulties; increase the exploitation of revenue sources and taxes that are still missing through enterprise management.

More than 300 billion VND in tax and fine revenue increased through inspection and examination in 2024

In 2024, the entire city's tax sector will conduct 1,867/1,562 inspections, reaching 119.5% of the target assigned by the General Department of Taxation and 84.4% over the same period. The total amount of money recommended for handling through inspections and checks is 1,342.4 billion VND (equal to 74.3% over the same period in 2023), of which the tax and fines collected through handling are 234.9 billion VND (equal to 119.8% over the same period), of which the tax and fines collected through handling are 301 billion VND (equal to 97.6% over the same period).

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Source: http://baodanang.vn/kinhte/202502/nganh-thue-da-nang-doi-moi-de-thu-ngan-sach-hieu-qua-bai-2-chong-that-thu-cac-linh-vuc-trong-diem-4001255/