Tax sector cooperate with Police agency to prevent fraud of tax invoice

To date, 100% of businesses, organizations and 100% of households and individuals doing business using the declaration method in 63 provinces and cities have converted to using e-invoices. Illustration photo: S.T

New methods and tricks

According to the General Department of Taxation, from July 1, 2022, all business establishments nationwide (including enterprises, economic organizations, households, and individual businesses) must apply for electronic invoices. After nearly 2 years, up to now, 100% of businesses and organizations (851,372 units) and 100% of business households and individuals (65,576 business households and individuals) which have implemented the declaration method in 63 provinces and cities have converted to using electronic invoices complying with Decree No. 123/2020/ND-CP.

Information at the scientific conference "Management, issuance and use of electronic invoices - Issues raised in the prevention and investigation of economic crimes, corruption, and smuggling in the current situation”, Senior Lieutenant Colonel, Associate Professor Dr. Pham Tien Dung, Dean of Criminal investigating on corruption, economics, smuggling, and the environment Police Department (People's Police Academy) said that the types of economic crimes, corruption, and smuggling had been gradually "adapting" to the use of new methods and tricks to commit crimes. The situation of illegal purchase, sale, and use of invoices is still complicated. Not only that, the situation of sale and using illegal invoices is also the reason leading to the complexity of the situation regarding economic crimes, corruption and smuggling.

Information from the General Department of Taxation also showed that in some businesses, organizations and individuals have violated the law and established companies just to sell fraudulent invoices and earn illegal profit. Moreover, some businesses buy illegal invoices to appropriate state taxes for many different purposes, for example, declaring and deducting input VAT, reducing the amount of VAT payable to state budget; using invoices to legalize unknown goods, legalizing smuggled goods, falsely accounting for costs incurred, reducing costs leading to a reduction in taxable income and corporate income tax paid to state budget; using input invoices to increase tax refund...

The General Department of Taxation said that in recent times, General Department of Taxation has directed tax agencies at all levels to strengthen tax management, inspection and examination of taxpayers' implementation of tax laws; strengthening coordination with authorities in preventing and combating crimes in tax field such as tax evasion and expropriation of tax refunds; illegally buying, selling and using invoices; prevent loss of revenue for state budget and ensure social equality.”

Currently, the Tax agency has developed a set of criteria to assess risks of electronic invoices, developed information technology applications to process data on electronic invoices, and supported the identification of taxpayers with high risks of using electronic invoices to warn and handle if there are violations or transfer to the Police for high-risk cases with signs of crime to coordinate in investigation and handle if violations are detected.” Mr. Mai Son, Deputy Director General of Taxation said.

Transfer 88 dossiers to Police agency for investigation and prosecution

According to Mr. Mai Son, in 2023, the Tax agency has transferred files to the Police agency to propose the investigation and prosecution of 88 dossiers and also received 4,416 requests to provide files from the Police agency related to the tax field of taxpayers to serve the management and suppression of economic crimes by the Police. After receiving the request, the Tax agency promptly coordinated to provide documents to the Police agency following the regulations. Some typical cases in the coordination between the two agencies include the case illegal sale and purchase of VAT invoices led by Nguyen Minh Tu, the case of purchase and sale of invoices by suspect Truong Xuan Duoc; case of Hoang Dang Ngoc My Trang and her accomplices due to "illegally printing, issuing, trading invoices" and "tax evasion"...

Mr. Mai Son said that to prevent e-invoice fraud for profiteering, in the future, the Tax sector will continue to direct Tax agencies at all levels to continue closely following the instructions of the General Department of Taxation and the Ministry of Finance on coordinating work with the Ministry of Public Security to protect national security and ensure social order and safety in the financial sector in the period 2022-2025; continue to strengthen coordination and exchange of information, documents, data, investigation prosecution results,... between the two agencies promptly in preventing and suppressing crimes in the field of tax management and invoice.