We are writing to bring to your immediate attention a critical Open Letter ("Thư Ngỏ") recently issued by the tax authorities. This letter signals a significant and concerning escalation in their efforts to identify and penalize tax non-compliance. We urge you to carefully consider the implications outlined below:
Image of the open letter (source: thuvienphapluat.vn)
I/ Targeting Non-Compliant Entities: The tax authorities are actively focusing on businesses, households, and individuals who have:
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Ceased operations without formal legal closure.
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Operated without issuing proper invoices.
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Underreported income or engaged in tax evasion.
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Have outstanding tax debts despite ceasing operations.
II/ Sophisticated Detection: Leveraging advanced technology, including the comprehensive e-invoice database (since July 1, 2022), national population data (Project 06/CP), Artificial Intelligence (AI), and Machine Learning (ML), the tax authorities now possess enhanced capabilities to detect tax violations with greater accuracy and speed.
III/ Key Areas of Focus: The Open Letter specifically highlights concerns regarding:
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Businesses operating without proper registration.
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Failure to issue invoices or declare revenue accurately.
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Underreporting of income and tax evasion.
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Cessation of business without notifying relevant authorities and settling tax obligations.
The notification explicitly states that tax authorities have implemented advanced data systems connecting financial transactions across all government agencies, making detection of non-compliance virtually certain.
A/ SEVERE LEGAL CONSEQUENCES
1. Criminal Liability: According to the Enterprise Law and Tax Administration Law, legal representatives may face criminal prosecution for tax evasion through improper business closure.
2. Asset Seizure: Tax authorities are now authorized to freeze bank accounts and seize business assets without additional court approval for businesses that have ceased operations without tax clearance.
3. Personal Financial Liability: Directors and legal representatives are now personally liable for unpaid business taxes regardless of business structure or limited liability status.
4. Blacklisting: Non-compliant businesses and their representatives will be added to a national database preventing future business registration or participation in government contracts.
5. Retroactive Penalties: The new enforcement directive includes provisions for full retroactive penalties with compound interest calculations.
B/ ALTAS PROFESSIONAL SERVICES - YOUR COMPLIANCE SOLUTION
ALTAS offers immediate assistance through:
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Emergency tax compliance audits
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Expedited tax finalization for ceased businesses
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Tax Code Termination Assistance: Specialized support for businesses completing the procedures to officially terminate their tax codes
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Accounting Services: Assistance with maintaining accurate financial records, preparing tax reports, and ensuring compliance documentation is in order
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Tax Advisory Services: Expert guidance on tax planning, compliance requirements, and risk management strategies
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Tax Refund Services: including Value-Added Tax (VAT) refund, Personal Income Tax (PIT) refund; and
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Tax Settlement Support: We assist with tax settlements for businesses, including negotiating with tax authorities and resolving any outstanding tax liabilities
Our team of tax attorneys and accountants specializes in resolving precisely these high-risk compliance situations before penalties are assessed.
C/ IMMEDIATE ACTION REQUIRED:
Contact ALTAS today for urgent consultation via email contact@altas.vn. Our compliance team can establish immediate protection strategies while developing your full resolution plan.
Protect yourself from severe penalties by calling us before authorities contact you!
