High tax risk business

Legal ground

• Circular No. 39/2014-TT/BTC.

Cases that businesses are considered high tax risk

Enterprises with high tax risk are those with equity of less than VND 15 billion and having one of the following signs:

+ No legal ownership or use of factories, production workshops, warehouses, means of transport, shops, and other facilities.

+ Enterprises in the field of mining soil, stone, sand, and gravel.

+ Enterprises having suspicious banking transactions following the law on anti-money laundering.

+ Having revenue from selling goods or providing services to other enterprises with which the owners of these businesses have a relationship, such as parents, spouses, siblings, or cross-ownership relationships, with revenue over 50% of total revenue on the annual Corporate Income Tax finalization declaration.

+ Enterprises do not make tax declarations as prescribed:

• Failing to submit a tax return or a tax return after 90 days from the expiration date of the tax return filing deadline or from the date of starting business operations under the business registration license.

• Temporarily closed business beyond the temporary closing time announced to the tax office, and the tax office checks and confirms that the enterprise has operation but does not declare tax.

• No longer doing business at the registered business address and failing to announce it to the tax office or the tax office can’t determine the registered place of permanent or temporary residence of the legal representative, the owner.

+ The enterprise’s legal representative is prosecuted for tax evasion, illegal printing, issuance, sale, and purchase of invoices and receipts for payment to the state budget.

+ Enterprises have other abnormal signs according to tax risk assessment criteria of tax authorities.