Strictly handle tax evasion from real estate transfers

By Hong Van
(TBTCO) - The Minister of Finance has just signed an official dispatch to the Ministry of Public Security, the Ministry of Justice, the People's Committees of the provinces and centrally-run cities on the fight against tax loss in business activities and real estate transfer. The Minister of Finance has just signed an official dispatch to the Ministry of Public Security, the Ministry of Justice, the People's Committees of the provinces and centrally-run cities on the fight against tax loss in business activities and real estate transfer.
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Strictly handle tax evasion from real estate transfers
Illustrative image.

According to this official letter, the Ministry of Finance proposes the Ministry of Public Security to direct local police agencies to coordinate with tax departments in investigating and strictly handling acts of real estate trading and transfer with signs of tax evasion in order to deter, prevent and collect taxes for the state budget.

That activity aims at preventing tax loss in business activities, real estate transfer, guiding people and businesses to correctly declare the transfer price, improving management efficiency, and ensuring state budget revenue.

The Ministry of Finance also asked the Ministry of Justice and People's Committees of provinces and centrally run cities to direct provincial-level Justice Departments to closely coordinate with local tax departments to request notarial practice organizations to guide citizens, real estate project investors, real estate trading and transfer enterprises to declare the actual prices on the notarized contract, as a basis for tax calculation according to the provisions of law, to avoid loss of state revenues.

The General Department of Taxation was assigned by the Ministry of Finance to direct local tax departments to proactively coordinate with police agencies and Departments of Justice to effectively fight and handle acts of tax evasion in business and real estate transfer.

Regarding this issue, recently VFT has continuously reflected the double price problem of houses and land transactions (high actual price, low contractual price to evade tax) for many years, which is common in all provinces and cities across the country.

This fact has had a negative impact on social life, causing loss of tax revenue, causing a lack of transparency and fairness in the implementation of tax obligations and many other consequences.

The fight against tax loss is an important task that is always closely directed by the Ministry of Finance. Following the direction of the Minister of Finance, the General Department of Taxation has issued many documents requesting tax departments to strengthen the management of real estate business activities, focusing on checking tax dossiers of businesses and individuals; coordinate with departments and branches to prevent loss of tax revenue for real estate transfer activities.

However, in addition to the efforts of the tax authorities with the above solutions, it is necessary to strengthen the closer coordination between agencies and departments in the locality where the land is located, including the natural resources and environment, financial, justice, police, inspecting agencies...

Therefore, it is necessary to have more drastic attention and direction from the People's Committees of the localities so that the tax administration and prevention of revenue loss are more effective, contributing to the development of the Vietnamese economy in a sustainable way, thereby contributing proportionately to the state budget.

By Hong Van

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