21.06.2020, 22:10

Workshop reveals inadequacies in tax audits

Tax evasion remains a complicated matter and has spread across many localities and throughout different types of businesses, according to an international workshop held in Hanoi on May 9.

Workshop reveals inadequacies in tax audits

Illustrative image (Source: vietnamplus.vn)

The event, co-organized by the State Audit Office of Vietnam and the UK Association of Chartered Certified Accountants, raised the matter of tax administration and the role of the state audit.

A report released by the audit sector pointed out a slew of tax evasion cases, alarmingly, those related to the improper application of value-added tax rates and corporate income tax, unreasonable tax deductions, and false tax declarations.

Deputy Auditor General Doan Xuan Tien said that the audit of tax administration still remains a limited and inadequate process, resulting in negative impacts on the quality of auditing.

Focus has largely been placed on inspecting tax evasion in order to increase state budget revenues, whilst no due diligence has been paid to evaluating the operation and capacity of tax units, Tien admitted.

"Auditors have yet to detect and evaluate many inadequacies in tax collection. The scope of tax audit is still restricted while audits are normally carried out through checking financial reports at state-owned enterprises and declaration documents.”

He added that the audit of tax obligations of other firms, inpiduals, and organizations through collation has run into difficulties due to shortcomings relating to mechanisms and co-ordination between stakeholders.

During the workshop, other delegates clarified the current status of tax administration and the consequences which tax evasion could have on the national budget and financial sector.

They called for an increasing role by the state audit to probe tax administrations, prevent losses to the national budget, and contribute to the sustainability of the financial sector.

Source: VNA