Help 'honest' people declare taxes

From August 1, there will no longer be two-price real estate transactions and real estate transactions must be done through bank accounts. In the photo: Houses for sale in Thu Duc City - Photo: NGOC HIEN

As a result, sellers are upset because they have to pay a lot of income tax, buyers are startled by the painful registration fee, and tax officers seem surprised when they encounter an "honest" home sale with the correct selling price.

It's only natural that selling houses with double prices has become a common practice. Declaring double prices is "a loss for the country, a gain for oneself".

Recently, the tax department wants to eliminate this bad practice, forcing people to pay full taxes by "making it difficult", returning tax records to re-declare, declare "correctly". It seems to be effective. People are wary, if they declare two prices, the difference is not too big.

Now, once again, the spirit of "correct and complete declaration" is re-established in the Law on Real Estate Business (effective from August 1), which stipulates that real estate-related businesses must make non-cash payments. Once through the bank, everything is clear, so there is no room for false declaration.

For individuals and small-scale businesses (specifically regulated by the Government), payment through banks is not required, but tax evasion will be limited through land price lists issued annually (instead of every 5 years) according to the provisions of the revised Land Law (effective from August 1).

According to the spirit of the laws, declaring two real estate prices to avoid taxes will gradually end for businesses, but individuals and small-scale businesses may not be in a hurry to "declare as is" according to the actual purchase price.

It remains to be seen whether the land price list issued by the locality is accurate enough to convince people to give up the habit of declaring two prices to avoid taxes.

The question is why in the declaration of real estate tax there is still no sign of an incentive mechanism to form the habit of voluntary tax declaration among people.

It is true that tax imposition is the power of the State, but it must also be convinced so that people do not misrepresent even a single penny. Something is not right. That's right.

The reason is that the method of calculating personal income tax with a "fixed" rate of 2% has long been considered unreasonable and imposed, but the Ministry of Finance has not yet proposed any amendments. What is unreasonable?

For example, the tax industry requires people and businesses to calculate all reasonable expenses correctly so that "profits are paid, losses are not" taxed. Many home buyers who meet these conditions, when selling their homes, even if they suffer a loss, still have to pay the full 2%.

There is a reason why the tax industry persists with this "contractual" tax collection method, which is that it is difficult to manage input and output costs when people declare, so it is better to just "cut" a part and apply 2% for convenience.

But now it's different, people have paid through the bank, with clear documents, but still their reasonable and valid expenses are not accepted.

When declaring two prices has become a custom, the regulations should be amended to rectify it, but this place "cut the plow in the middle of the road" with the applied measure of returning the tax declaration and forcing the tax payer to re-declare. It sounds like "arguing" with the taxpayer, creating a feeling of not being serious.

When declaring taxes, you must be responsible for the declared content, re-declaring means correcting the declaration. While the tax declaration form clearly states "I guarantee that the declared content is correct and I am responsible before the law for the declared content"!

Management measures for real estate business are increasingly improved and supported by the people.

Should tax management for individuals and small-scale real estate businesses stay out of the picture and the tax industry be satisfied with the measure of forcing people to re-declare their tax returns correctly and completely!?

Source: https://tuoitre.vn/giup-dan-that-tha-khai-thue-20240714090651687.htm