National Assembly (NA) deputies agree it is important to penalise tax officials who provide illegal solutions for taxpayers.

According to NA deputy Truong Trong Nghia from HCM City, most of the cases are businesses complaining about tax officials who requested bribes to complete the tax paying process.

Some tax officials have given bad advice and illegal solutions to help taxpayers avoid paying their taxes in full, Nghia told an NA group discussion session about the draft law on tax management on Monday.

This practice means both sides – taxpayers and officials – benefit from scams while the State and people suffer.

Nghia suggested the Government regulate the obligations and rights of tax officials and forbid them from making illegal deals with taxpayers.

“Tax officials should earnestly help businesses and individuals pay taxes in the fastest and most convenient way,” Nghia said.

According to the NA deputy, many firms with foreign investors are willing to pay extra money to complete tax procedures quickly. However, the money spent on expedited tax processes must be clean so companies can include it in their financial statements.

NA deputy Hoang Van Cuong from Ha Noi said such violations will lead to unfair competitiveness among economic sectors, so the draft law must focus on making taxes an equal obligation for all businesses and individuals.

According to another NA deputy, Do Thi Thu Hang from the southern province of Dong Nai, the developers of the draft tax law should evaluate the availability of resources and the social impacts of policies so new rules meet the practical conditions of the nation.

The development unit should not create rules that put pressure on both taxpayers and officials about tax collection and payment, she said, adding that officials should be encouraged to take part in professional training.

To avoid violations, electronic tax collection systems must be used broadly to make paying taxes smoother and more transparent, NA deputy Tran Thị Phuong Hoa from Ha Noi told a discussion group.

Online businesses

Tax agencies have found it difficult to collect taxes from online business, said finance minister Dinh Tien Dung.

There are no regulations that help officials recognise online businesses and collect taxes from them, Dung told a discussion group.

Government tax agencies have sent letters to online businessmen to convince them to pay taxes, he said. Officials are well aware of those businesses’ information but there are no rules that apply.

The finance ministry has worked with the Ministry of Information and Communication, asking internet service providers to be based in Việt Nam so any tax violations can be resolved quickly, Dung said.

The State Bank of Viet Nam is required to provide details of bank accounts for the tax agency. “If incomes and cash inflows are not monitored, it is harder to collect taxes,” he said.

According to the finance ministry, late tax payments have an estimated value of at least VND80 trillion (US$3.55 billion), including VND40 trillion worth of taxes that are hard to collect.

Tax agencies are monitoring 600,000 tax payers, including 190,000 businesses that are unable to pay taxes. There are others that were found to trade bills illegally. — VNS