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Tax sector strengthens fight against invoice fraud

Illegal trading of value-added invoices to appropriate tax money.

The tax sector has taken professional measures, including tax inspection and examination, and coordinated with competent agencies to prevent organizations and individuals from committing tax evasion, fraud, and invoice fraud to gain illicit profits, especially in implementing electronic invoices. As a result, it has created a deterrence and warning and strengthened the effectiveness and efficiency of tax administration.

However, taking advantage of the openness in the State's policies and laws for profiteering has seen complicated developments. This poses many challenges and potential risks for the state budget management, especially for the illegal trading of value-added invoices to appropriate tax money.

To further fight and prevent fraud in the illegal trading of invoices, the General Department of Taxation has requested local tax agencies to closely follow the directions of the Prime Minister, the Ministry of Finance and the General Department of Taxation.

Accordingly, the General Department of Taxation has required the heads of local tax agencies to ask units and civil servants under their management to raise awareness of invoice management to prevent invoice fraud, especially civil servants who are assigned to manage taxpayers to promptly and effectively implement tax management measures following regulations.

The General Department of Taxation has proposed that the tax departments base themselves on the provisions of law and the actual situation of tax administration in their areas to assign tasks to each civil servant, each team, and each unit and daily review the electronic invoice system to promptly detect high-risk taxpayers in using invoices and take professional measures for tax administration in case of identifying abnormal signs of taxpayers in invoice issuance.

In addition, it is necessary to strengthen coordination between tax authorities in verifying invoices, assigning tasks, processing, approving, responding to requests for invoice verification and giving warning risks, and promptly considering and handling violations in illegal trading of invoices.

Tax departments must also promote the application of regulations on the classification of risks to have appropriate handling measures for risky businesses; make a list of taxpayers with signs of high tax risk for tax management.

In reviewing and identifying high-risk businesses, the tax authority should continue to proactively and promptly coordinate with local authorities, such as the Public Security Investment Plan, to handle violations in illegal invoice trading activities immediately.