According to Deputy General Director of the General Department of Taxation Mai Son, this may stem from many objective reasons such as the Covid-19 epidemic with serious consequences leading to the situation where enterprises have to stop production and business activities due to social distancing and cannot carry out procedures to terminate business activities...

However, reality shows that a number of enterprises take advantage of loopholes in the law, take advantage of the flexibility in regulations on establishing new enterprises to abandon business addresses for the purpose of tax evasion or establish enterprises to illegally buy and sell invoices or establish new enterprises...

Tax authorities request to strengthen tax management for businesses abandoning business addresses

According to the Director of the Tax Declaration and Accounting Department, Le Thi Duyen Hai, through reviewing and evaluating the current status of tax management for these enterprises, there have been many policy solutions such as amending and supplementing regulations on the Enterprise Law, the Decree on Business Registration, amending and supplementing the Decree on electronic invoice management... However, in practice, management still has complex issues that need further research to come up with management solutions.

To control the current situation of buying and selling invoices, the Tax Department has deployed a tool to compare electronic invoices and VAT declarations of the above enterprises. This tool is showing positive results in management work, thereby helping tax authorities at all levels detect many cases of violations by enterprises and have taken measures to handle them in accordance with tax law.

The General Department of Taxation's leaders requested that local Tax Departments review, classify, evaluate and immediately handle according to regulations enterprises that are not operating at their business addresses, enterprises that have stopped operating but have not completed tax code closure procedures.

At the same time, the General Department of Taxation also assigned the Department of Tax Declaration and Accounting to take the lead in closely coordinating with professional units under the General Department of Taxation to strengthen tax management for these enterprises.