There are cases of land purchase and sale that initially declared 500 million VND, then declared again up to 10 billion VND
Declare prices 40 times lower
Continuing to discuss socio-economics in 2021 and the first months of 2022 on the morning of June 2, Minister of Finance Ho Duc Phuc shared before the National Assembly a number of issues of interest to many delegates. Including the issue of tightening the collection of real estate transfer tax.
The Minister of Finance said that according to regulations, taxpayers must declare tax on the contract at the price agreed by the two parties, if it is lower, it will be calculated according to the land price list at the time of tax payment.
“Recently, there has been tax evasion and tax profiteering in this area. The Ministry of Finance has issued two documents directing tax authorities to tighten tax collection at the right value of purchases, this also has an impact. to the issue of real estate speculation,” said the Finance Minister.
Accordingly, in 5 months, the total revenue is 16,200 billion VND, 6,600 billion VND higher than the same period last year. Notably, the Minister said that there were cases where the initial declaration was only 500 million VND, then it was explained that he declared again 10 billion VND, which means 20 times more. There are even cases up to 40 times more. This is an issue that needs to be done in accordance with the law,” the Finance Minister informed.
According to Mr. Phuc, the Ministry of Finance has also sent a telegram to prohibit tax authorities and tax officials from “interfering” and causing trouble to people. This issue is also aimed at “pre-inspection”, avoiding criminal cases. For example, a home seller evades taxes by declaring two contracts, if found guilty of tax evasion. Therefore, tightening with this approach is completely legal. If the tax authority has a situation of bribery, profiteering, or bribery, it will be strictly handled.
“In the near future, we suggest localities to build adjustment coefficients, real estate purchase and sale data to be more transparent, to ensure the collection of real estate transfer tax,” Phuc said.
Not fully resolved yet
On June 1, delegate Phan Thai Binh (Quang Nam delegation) shared before the National Assembly regarding the fight against loss of tax revenue from real estate transfer business. According to Mr. Binh, the situation of selling “two-price” houses in the real estate transfer business is increasingly common, causing loss of budget revenue.
In fact, the Ministry of Finance and the Ministry of Justice have written documents to implement measures to prevent tax loss, and guide the correct declaration of the transfer value. This initially had results, improving the efficiency of state management and ensuring revenue.
However, he said that the direction and guidance are still general and have not completely solved the problem, but also arise more inadequacies in the implementation process.
Mr. Binh analyzed, according to regulations, the tax declaration is the transfer price of land use rights recorded according to the price in the contract. In case the contract does not state the price or is lower than the land price prescribed by the State, the taxable price shall be calculated according to the State framework.
Mr. Binh said that the People’s Committees of the provinces and cities must properly, fully and promptly update the land price according to the market land price into the state land price list to serve as a basis for tax calculation in the real estate transfer business. and calculate the cost of compensation and support when the state recovers land for people, ensuring fairness and equality in these relationships.
This position also shared, there is currently no clear legal basis to recognize or not recognize the price declared in the notarized contract as the actual transaction price. Therefore, applying measures to prevent tax loss in business, real estate transfer in localities is “not uniform, each place, each person applies a style”.
From the voters’ feedback, Mr. Binh said, there are some district-level tax agencies that show arbitrary expression in the application of tax calculation prices. Many places require people to accept a taxable value that is 1.5-2 times higher than the price prescribed by the State to process the application. In case it is lower than the above level, they will be “soaked” or “invited to work many times”, returning the application for the reason that it is not close to the market.
However, according to this position, the basis of how to close the market is not clear and not transparent. In fact, there are many localities that are slow to process dossiers, and the overdue situation is very large. This seriously affects people’s business and life.
Mr. Binh also suggested that the National Assembly and Government soon complete the legal corridor on land and tax, which clearly stipulates the principle of determining land price at market price in accordance with the provisions of the Land Law.
In addition, the delegate suggested that the Ministry of Finance and the General Department of Taxation clearly define measures to prevent tax loss in business activities and real estate transfer so that local tax authorities can consistently implement and ensure the calculation of tax revenue. unification, publicity and transparency, avoiding abuse of power, harassment, and difficulties for people and businesses, in order to contribute to the healthy development of the real estate market.
Previously, the Tax Department of Ba Ria – Vung Tau said that within the first half of March 2022, the Ba Ria-Vung Tau tax industry had paid more than 1,200 applications for real estate transfer and transfer because of signs of low declaration. much more than the actual price. Of these, there are 155 dossiers of declaration, adjustment, supplement and return to tax authorities.
In particular, the dossiers re-submitted, re-declared the land transfer value increased from 2-5 times compared to the first declaration. Featured has profile increased up to 20 times. That is the case of land transfer in Dat Do district from the initial 500 million declared to 10 billion dong. In addition, there are records that initially declared 400 million, but then re-declared it to 3.5 billion; declare 1.5 billion and declare again to 9.3 billion…
Accordingly, the additional tax collected on business activities and real estate transfer in the past time is more than 3 billion VND.
In Long An, from the beginning of 2022 to the end of March, 2022, the tax branches under the Long An Tax Department returned and requested to adjust the price to match the actual transaction in many documents. In which, there were 473 dossiers that taxpayers adjusted the transaction prices themselves, increasing tax revenue and paying more than 2.1 billion VND to the state budget.
The Tax Department has directed the processing departments at the tax branches in Long An province to check the transfer history at the land plot in the dossier, compare and contrast with other documents at other agencies. adjoining plots or plots with nearly identical conditions, etc., to determine the relative actual actual allocated land price. Thereby, the tax departments will require taxpayers to declare truthfully to be approved.
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