Strengthen anti-loss of tax revenue from real estate transfer activities

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The General Department of Taxation has directed tax agencies at all levels to strengthen inspection of cases of showing signs of tax fraud in real estate transfer. Photo: Internet.

The General Department of Taxation has required tax offices at all levels to strengthen information about legal policies, especially regulations on tax evasion and penalties in the criminal law and tax policies related to real estate trade and transfer for people and businesses by forms such as delivering an "Open Letter" at the land registration office and One-stop unit; instructing tax branches to distribute the "Open Letter" at notary offices, branches of land registration offices and "One-stop" units of People's Committees of districts, towns and at tax branches; and publishing articles on the website of the tax department, as well as reports on the mass media.

For tax inspection, the General Department of Taxation has developed thematic inspection and examination of duty performance in the field of notarization and tax management for real estate transfer activities; checked tax declaration documents to check the accuracy of the information provided by the taxpayer, identifying cases of undervaluing, false declaration of the selling price or inappropriate selling price to define high-risk cases and request the taxpayer for explanation and supplement information in accordance with the Law on Tax Administration.

The General Department of Taxation annually develops a plan to inspect and detect acts of tax evasion and fraud related to real estate business activities, perform tax assessments, tax arrears and penalties.

The General Department of Taxation has required tax departments to actively coordinate with other agencies in tax administration for real estate business and transfers; proposed the Provincial People's Committee develop a project to prevent loss of revenue for real estate transfer activities.

Accordingly, the General Department of Taxation has actively worked with relevant state management agencies to advise and report to the People's Committees of provinces and cities to develop a list of land prices close to the common land prices on the market; worked with the Department of Justice to request notary organizations in the localities to guide people to correctly declare the actual purchase and sale prices in real estate transactions; and collected information, reviewed the database to determine revenue, urged tax declaration and payment according to regulations.

During inspections and supervisions, if the tax agency detects that organizations or individuals have committed violations, the tax agency will handle or transfer cases to the investigating agency beyond their authority.

Need to improve legal framework to support investment in real estate, preventing economic bubble

In addition, interdisciplinary inspection is required. The agency in charge of interdisciplinary shall have the main responsibility for inspecting and handling inspection results according to its competence and provisions of law; and participating agencies and units should achieve a consensus in the process of inspection and handling.