Transfer pricing:
It’s to blame on VN’s bad policy response ability
In the southern
The fact that 122 FIEs have been
found as conducting the transfer pricing and forced to pay tax arrears worth
VND214 billion has heated up the ongoing National Assembly’s session.
Tran Ngoc Vinh, a National Assembly’s
Deputy from
Professor Nguyen Mai, former Deputy
Minister of Planning and Investment, attributed the increasingly high number
of FIEs trying to evade tax through transfer pricing to the
“Taxation bodies raised doubts that
Coca-Cola and Keangnam conducted the transfer pricing three or four years ago
already. We should have had prompt policy response to stop them and prevent
others from conducting the transfer pricing,” Mai said.
As
A report of the General Department of
Taxation released after checking the 5,500 businesses’ results in 2010 and
2011 showed that 57 percent of them had accumulative losses. The 5,500
businesses accounted for 60 percent of the total operational FIEs.
Of the enterprises that reported
accumulative losses, 529 businesses still saw turnover increasing steadily.
Most of them are in the fields of textile and garment, leather and shoes,
farm produce processing.
The provinces which have numerous
enterprises reporting losses are Bac Ninh (9 businesses reported the
accumulative losses higher than the stockholder equities),
According to Mai, it is necessary to
immediately take four drastic measures. First, it is necessary to make
thorough research to find out the reasons and the loopholes through which
enterprises conduct the transfer pricing.
Second, it is necessary to reconsider
the legal system and fix the legal loopholes.
Third, it is necessary to keep a
close watch over enterprises, the thing that management agencies now don’t
pay much attention.
“The HCM City Taxation Agency told me
that Coca-Cola has been conducting the transfer pricing, but it does not know
this in details,” Mai said.
“It is too dangerous. When
discovering the signs of tax evasion, it is necessary to supervise
enterprises, seek information from different sources to deal with the
frauds,” he added.
And fourth, it is necessary to
reconsider the tax rates. In some cases, enterprises may try to evade tax
because the tax rates are overly high. A reasonable tax mechanism would
encourage businesses to pay tax self-consciously.
Pham Huyen,
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Thứ Năm, 7 tháng 11, 2013
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