HCMC – The General Department of Taxation inspected 72 enterprises suspected of indulging in transfer pricing, collecting taxes and imposing fines of VND212 billion, increasing taxable incomes by over VND1.4 trillion and cutting the losses reported by these firms by VND1.3 trillion.
As of last month, the local taxation sector had inspected 29,280 enterprises and looked into 281,219 tax declarations.
The agency also sent provincial taxation agencies a list of tax debtors that have a high ability to pay taxes, taxpayers with tax arrears being handled or taxpayers waiting for their taxation complaints to be addressed, so tax authorities would take steps to urge them to pay taxes.
Besides this, the General Department of Taxation also closely monitored efforts by taxation agencies to coerce tax debtors to pay tax arrears and to name debtors on mass media in addition to checking their progress over collecting the debts.
By proactively taking these measures, 63 provincial/municipal taxation agencies nationwide in the first half of this year had collected combined tax arrears of VND15.2 trillion, up over 10% compared to the same period last year.
Transfer pricing occurs when two or more companies that are part of the same multinational group trade with each other. Transfer pricing is not in itself illegal or necessarily abusive. What is illegal is transfer mispricing, also known as transfer pricing manipulation or abusive transfer pricing.