More than 60,000 tax records have to be re-declared
According to the Ministry, in recent times, there have been some complaints in some places where tax officials cause difficulties and harassment for people and businesses. Therefore, the Minister of Finance continues to direct the General Department of Taxation to urgently advise solutions to closely determine the real estate market price to avoid tax loss.
In addition, the Minister also requested the General Department of Taxation to strengthen inspection and strictly handle violations of civil servants. Quarterly report on the assessment of the results of the fight against tax loss in business activities and real estate transfer; results of inspection of additional declarations by taxpayers but no change in the transfer price.
According to General Director of Taxation Cao Anh Tuan, in the period January 1, 2021 to January 15, 2022, tax authorities at all levels have fought against loss of revenue with 233,983 organizations and individuals with transfer records. Real estate transfer has increased revenue by more than 500 billion VND and in the period January 1, 2022 to March 31, 2022 alone, tax authorities at all levels have fought with 60,289 records, the revenue increased by more than 326 billions dong.
Specifically, in the city. Hanoi in 2021 increased by 550 billion VND compared to 2020, the rate increased by 24% while the number of applications increased by 11.7%. In Ho Chi Minh City in 2021, an increase of 20% compared to 2020, an increase of 57.11% in the first 3 months of 2022 over the same period. In particular, through struggles in some localities, organizations and individuals have declared that the real estate transfer price has increased by 2-5 times compared to the original declared price.
In fact, the tightening of 2 prices in the declaration of real estate transfer is leading to the accumulation of real estate transfer documents while determining the market price for tax calculation is quite ambiguous.
The fact that the tax branches in Ho Chi Minh City tightened the situation of buying and selling real estate “two prices” is necessary to avoid loss of state tax revenue and has brought good results when the extra tax is very large. However, the re-declaration of taxable prices in real estate transfer has raised many problems.
Recently, the tax industry in Long An is returning hundreds of real estate transfer tax payment records because it thinks the declared price is lower than the market price. It is worth mentioning that the declared prices are higher than the land prices announced by the People’s Committee of this province. Not only Long An, but also in many localities, including Ho Chi Minh City, the calculation of real estate transfer tax is confusing, causing many inconveniences and frustrations for people.
Representatives of the Tax Consultants and Agents Association of Ho Chi Minh City once said that localities now return documents a lot because they think that when selling a house, people declare the price is lower than the actual price, or officials feel that the price is lower than the actual price. low tax declaration should be re-declared. When making this decision, the tax authority relies on data of similar or nearby transactions for reference and on the land price list issued by localities so that the purchase price is not lower than this price list. But the land price list is often much lower than the market price.
However, which price is the market price, the tax authority cannot explain it, but in general, the market price is the reference price of nearby transactions. Another solution currently used to determine the market price is based on the appraisal table of independent valuation companies. But no matter how applied, it still does not reflect the current market price.
How “reasonably, rationally”?
Sharing in the press, lawyer Nguyen Bich Tram, Ho Chi Minh City Bar Association said that the real estate transfer price is the basis for tax calculation. If the transfer contract does not state the price or the price on the transfer contract is lower than the land price set by the People’s Committee of the province at the time of transfer, the transfer price shall be determined according to the land price list prescribed by the People’s Committee of the province. .
But the current problem is, there is no document that stipulates that the transfer contract cannot be written below the actual transaction price, even the contract may not need to record the transfer price. Therefore, according to Ms. Tram, in order for people to correctly record the actual transaction price on the notarization contract, they must first amend the law in a clear, specific and understandable way. The requirement to correctly record the high actual price, which requires the market price, should also consider reducing the real estate transfer tax. The reason is, the current taxing method is flat calculation, not the true nature of income tax.
Lawyer Tran Duc Phuong, Ho Chi Minh City Bar Association also of the same opinion, localities need to immediately build a taxable price list for real estate to be open and transparent, but cannot forever rely on the honesty of the declarant. tax, can not continue to let the tax department return the file because the land next to it is sold at a higher price.
According to LS Phuong, it is not possible for all tax records to be re-examined to see if the people declared the correct market price. This is very meager, not even enough people to do it, so there is a situation of files being piled up at tax departments.
Many industry experts support the tax agency’s fight against revenue loss in this area, but it is necessary to review the current method that is not effective, sometimes “overdoing it” and violating the law and causing damage to people.
Some experts offer solutions, so the best solution is to have a roadmap to force individuals or organizations when transferring real estate to go through the bank, not using cash to have a basis to prove the purchase price. The next step is to have a roadmap to build a land price list according to market prices. From here, when calculating tax, there will be a margin for people to declare tax higher or lower than that margin to be considered valid.
And LS Tran Minh Cuong, CEO of the Law Firm Solution & Partners, also said that the tax industry should issue a specific land price list for each year to apply tax, because currently the tax authority imposes tax at the market price. The market will not be accurate because the market always moves in a sine wave, moreover the asking price and the bid price are different, the buyer and the seller will never have an exact number, even the transaction through bank. Currently, the application of real estate tax has slowed down the process of transferring people’s names, but the tax authorities have not yet processed the dossiers according to the appointment schedule. The basic solution is still to provide a taxable price list according to the market price for people to follow.
Some people think that determining the real estate price according to the market price before tax calculation is a “blind” point that causes frustration between people and tax officials in recent years. This is also the point where tax records are stretched, tax officials easily cause difficulties and harass people. In fact, people when transacting often have the mentality of declaring half the market price to reduce the amount of tax to pay. The application of measures to avoid loss of tax revenue in real estate transactions as in the past time is necessary, but it should be done in a holistic manner, not causing consequences.
For example, requesting a transaction through a bank account without any sanctions will also lead to partial payment in cash, encouraging the use of cash in payments.
To increase budget revenue related to real estate, only the law can be changed. The Law on Personal Income Tax 2007, the Law on Tax Administration in 2019, as well as the decrees and circulars on personal income tax, there is no provision that can be understood that the transfer contract cannot be written below the transaction price. actual translation. The price recording in the notarized contract has been implicitly acknowledged for decades, just around close to the housing price bracket.
Therefore, in order for people to correctly record the actual transaction price on the notarization contract, the State must first amend the law in a clear, specific, easy to understand, sympathetic and reasonable direction. At the same time, the State also needs to do many other things to ensure the synchronization, consistency and feasibility in the implementation.
Accordingly, in the next revision of the Land Law, it is necessary to bring the land price in the frame and land price list set by the state and locality close to the market price through a mechanism to organize an independent Land Valuation Council. in localities. When the land price prescribed by the state used for tax calculation is also equal to the market price, there is no need to monitor, investigate and supervise, just buy and sell land through a notarized contract, transfer the name automatically, and pay the right tax. , enough.
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