The misuse of personal information to fabricate wage and salary expenses warmed by the Dong Nai Tax Department?
The misuse of personal information to fabricate wage and salary expenses warmed by the Dong Nai Tax Department?
On April 19, 2024, Dong Nai Tax Department issued Official Dispatch 2710/CTDON-TTHT 2024 download to taxpayers in the area, warning about the misuse of personal information to fabricate wage and salary expenses.
In recent times, some businesses have been using personal information (Name, Tax Identification Number, Citizen ID Number) to declare and calculate wage and salary expenses when determining corporate income tax liabilities, even though there were no actual income and earnings for those individuals. This behavior is a violation of tax laws, aiming to deceive and reduce the amount of tax payable by the businesses. It also affects the taxpayers themselves when their personal information is used without their consent.
To ensure the rights of taxpayers and prevent and strictly handle businesses and organizations that engage in fraudulent activities, exploiting personal information to declare and calculate wage and salary expenses for the purpose of tax evasion and reducing tax obligations to the state budget, the Dong Nai Tax Department advises taxpayers in the area on the following points:
(1) For individuals and employees:
- Increase awareness and protect personal data, limit the disclosure of personal information such as Citizen ID Number, ID number, tax identification number, bank account number, or passwords to others and on the internet.
- When receiving messages requesting personal information, carefully check the content and do not rush to respond or follow the instructions in the message. Taxpayers should also note that the official website of the tax authority uses the "https" protocol and the national domain name ".vn". (For example, the Dong Nai Tax Department's website has the domain name: https://www.dongnai.gdt.gov.vn).
- In case of receiving messages, conversations on social media platforms, or calls with signs of fraud, taxpayers should keep evidence such as messages or call recordings, report to the telecommunications company managing the subscriber to request handling, and provide the evidence to the nearest functional authorities of the Ministry of Public Security for dealing with the misconduct according to the legal regulations.
- The Dong Nai Tax Department has disseminated information to taxpayers about combating and preventing fraud and misappropriation of assets on the internet. Taxpayers can refer to this by scanning the QR Code:
- Additionally, for taxpayers with tax registration information matching the national population database, the General Department of Taxation has coordinated with the Ministry of Public Security to implement the use of electronic identity accounts for logging in and verifying taxpayer information on tax platforms (tax department websites, eTax Mobile application).
When taxpayers have electronic transaction accounts with the tax authority or VNelD electronic identity accounts, and there is connection and information sharing with state management agencies, taxpayers do not need to declare as much personal information as before or information that has already been integrated into the personal identity account will be automatically filled in the taxpayer's declaration information.
- Currently, the eTax Mobile application supports taxpayers in looking up information about income sources to ensure the complete and accurate control of their own income sources. Taxpayers can scan the following QR Codes to explore the features:
Guide to registering eTax Mobile account:
Guide to checking income source information:
- It is recommended that taxpayers notify the tax authority immediately if they discover the misuse, theft, or unusual income associated with their tax identification number, in order to promptly handle it in accordance with the legal regulations.
(2) For businesses and organizations paying income:
Hành vi tự ý sử dụng thông tin của cá nhân để kê khống số lượng người lao động, hạch toán khống chi phí nhân công, ... là hành vi vi phạm pháp luật về dân sự, hành chính và pháp luật hình sự. Doanh nghiệp, tổ chức trả thu nhập kê khai khống sẽ bị lưu vết và cơ quan thuế sẽ theo dõi, xử lý theo đúng quy định về thuế và pháp luật liên quan (nếu có dấu hiệu vi phạm pháp luật hình sự).
The act of using personal information to fabricate the number of workers, falsely accounting for labor costs, etc., is a violation of civil, administrative, and criminal laws. Businesses and organizations that engage in such fraudulent reporting will be monitored and handled in accordance with tax regulations and related laws (if there are signs of criminal violations).
The Dong Nai Tax Department collaborates with relevant departments and agencies to verify information when receiving reports from taxpayers about businesses and organizations that misuse personal information to declare and calculate expenses when determining corporate income tax obligations, even though no actual income has been generated. In cases where violations are confirmed, based on the extent of the violation by the business or organization paying income, the Tax Department will impose penalties in accordance with the provisions of Article 16 and Article 17 of Decree 125/2020/ND-CP or in accordance with the provisions of Article 200 of the 2015 Criminal Code.
The misuse of personal information to fabricate wage and salary expenses warmed by the Dong Nai Tax Department? (Image from the Internet)
What is the sentence bracket for individuals committing tax evasion in Vietnam?
Pursuant to the provisions of Article 200 of the 2015 Criminal Code as amended by Point a, Clause 47, Article 1 of the Law on amendments to the Criminal Code in 2017, stipulates the sentence bracket for individuals committing tax evasion as follows:
* Bracket 1
A fine of from VND 100,000,000 to VND 500,000,000 or face a penalty of 03 - 12 months' imprisonment:
Any person who commits any of the following acts of tax evasion with an amount of evaded tax from VND 100,000,000 to under VND 300,000,000 or under VND 100,000,000 while having incurred an administrative penalty for tax evasion of the 2015 Criminal Code (amended by the Law on amendments to the Criminal Code in 2017)
Or having an unspent conviction for any of the offences specified in Article 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309 and 311
* Bracket 2
This offence committed in any of the following circumstances carries a fine of from VND 500,000,000 to VND 1,500,000,000 or a penalty of 01 - 03 years' imprisonment:
- The offence is committed by an organized group;
- The amount of tax evaded is from VND 300,000,000 to under VND 1,000,000,000;
- The offence involves the abuse of the offender's position or power;
- The offence has been committed more than once;
- Dangerous recidivism.
* Bracket 3
If the evaded tax is ≥ VND 1,000,000,000, the offender shall be liable to a fine of from VND 1,500,000,000 to VND 4,500,000,000 or face a penalty of 02 - 07 years' imprisonment.
* Additional penalties
The offender might also be liable to a fine of from VND 20,000,000 to VND 100,000,000 , be prohibited from holding certain positions or doing certain works for 01 - 05 years or have all or part of his/her property confiscated
What is the sentence bracket for legal entities committing tax evasion in Vietnam?
Pursuant to the provisions of Article 200 of the 2015 Criminal Code as amended by Point b, Clause 47, Article 1 of the Law on amendments to the Criminal Code in 2017, stipulates the sentence bracket for legal entities committing tax evasion as follows:
- Any corporate legal entity that commits any of the acts of tax evasion specified in Clause 1 of this Article with an amount of from VND 200,000,000 to under VND 300,000,000 or from VND 100,000,000 to under VND 200,000,000 while having incurred an administrative penalty for tax evasion or having an unspent conviction for any of the offences specified in Article 188, 189, 190, 191, 192, 193, 194, 195 and 196 of the 2015 Criminal Code (amended by the Law on amendments to the Criminal Code in 2017) shall be liable to a fine of from VND 300,000,000 to VND 1,000,000,000;
- A corporate legal entity that commits this offence in any of the circumstances specified in Points a, b, d and dd Clause 2 of Article 200 of the 2015 Criminal Code (amended by the Law on amendments to the Criminal Code in 2017) shall be liable to fine of from VND 1,000,000,000 to VND 3,000,000,000;
- A corporate legal entity that commits this offence in any of the circumstances specified in Clause 3 of Article 200 of the 2015 Criminal Code (amended by the Law on amendments to the Criminal Code in 2017) shall be liable to a fine of from VND 3,000,000,000 to VND 10,000,000,000 or has its operation suspended for 06 - 36 months;
- A corporate legal entity that commits this offence in the circumstance specified in Article 79 of the 2015 Criminal Code (amended by the Law on amendments to the Criminal Code in 2017) shall be permanently shut down;
- The violating corporate legal entity might also be liable to a fine of from VND 50,000,000 to VND 200,000,000, be banned from operating in certain fields or raising capital for 01 - 03 years.
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