Businesses that stop operating must 'terminate' their tax codes

In an open letter sent to business owners, legal representatives of enterprises, business individuals, and representatives of business households that have ceased operations but have not completed the procedures for terminating the validity of tax codes; and have ceased operations without notifying the business registration authority, the Tax Department - Ministry of Finance stated: Recently, a number of business owners, legal representatives of enterprises, business individuals, and representatives of business households have not clearly recognized the importance of complying with tax and invoice laws, and have not properly and fully performed the obligations and responsibilities of taxpayers during operations, temporary suspension of business, and termination of operations.

There are cases where businesses have ceased operations but have not completed the procedures to terminate the validity of their tax codes. Illustrative photo

More serious is the situation where businesses, households, and individuals have revenue-generating activities but do not issue invoices, issue invoices but do not declare, do not pay taxes or declare incompletely, have declared taxes but do not pay taxes or still owe taxes to the state budget but then stop operating without notifying the business registration agency or tax authority.

"The above violations are acts of tax evasion and tax debt according to the provisions of tax management law, causing negative consequences, causing loss of state budget revenue, affecting the business environment. and directly affect legitimate and legitimate businesses and households that have transactions with these businesses, households and individuals" - the Tax Department stated.

To overcome the above situation, the tax sector has actively coordinated with competent authorities to implement tax management measures according to the nature and level of violations, specifically: Requesting the business registration authority to revoke the enterprise registration certificate and business registration certificate according to regulations.

Along with that, the Immigration Department (Ministry of Public Security) is requested to temporarily suspend exit for legal representatives, business individuals, and business household representatives who still owe taxes. In particular, coordinate with the police agency to investigate and prosecute many criminal cases and cases related to businesses abandoning their business addresses.

On the principle of "Taxpayers self-declare, self-pay, self-responsible", the tax authority requests taxpayers to cooperate in implementing the following requirements: Firstly , individuals who are business owners, representatives of businesses, business individuals, representatives of business households that have stopped operating but have not completed the procedures to terminate the validity of tax codes, businesses, business households, and business individuals that have issued invoices and then abandoned their business addresses but have not declared taxes, under-declared taxes, or still owe taxes, should promptly contact the tax authority directly managing them to fulfill their obligations to declare and pay taxes to the state budget.

Second , in case of not receiving proactive cooperation from enterprises, households and business individuals, the tax authority will proceed to publicize the list of taxpayer information according to the provisions of the Law on Tax Administration; at the same time, consolidate and complete the dossier to transfer the request to the police agency for investigation, prosecution and strict handling according to the provisions of law.

The Tax Department said that there is a phenomenon of legal representatives of enterprises, business individuals, and business household representatives who have ceased operations but have not completed the procedures to terminate the validity of tax codes.

Linh Dan

Source: https://congthuong.vn/doanh-nghiep-dung-hoat-dong-phai-khai-tu-hieu-luc-ma-so-thue-382605.html