Facebook comestics seller hit with $400,000 tax arrears

This was the department's largest catch of Facebook tax evasion so far

According to newswire Vnexpress, Le Thi Thu Huong, deputy director of the Ho Chi Minh City Department of Taxation, said that after reviewing the tax declaration of the woman, the tax department found a difference of VND400 billion between the revenue she declared for tax payment and her real income.

The cosmetics seller agreed to clear the payment. Therefore, she did not face charges of tax evasion, but was only asked to pay a total of VND9.1 billion ($400,715), including fines for wrong tax declaration, late payment fees, and the tax arrears.

Huong stated that the tax department collected arrears from a number of people and organisations who have online trading activities on Facebook, however, this was the tax arrears with the largest value to date.

Previously, the Ho Chi Minh City Department of Taxation said it has also asked two businesses that have income from online sales to pay taxes of a collective VND8.7 billion ($383,260), comprising VND7.5 billion ($330,396) in value-added tax and VND1.2 billion ($52,863) in corporate income tax.

Besides, District 9 tax authorities have also requested another cosmetics seller to pay VND1.7 billion ($74,890) in fines and back taxes for a similar violation.

Ealier in June, after discovering that some online businesses have very sophisticated ways of tax evasion, the Ho Chi Minh City Department of Taxation sent invitations to merchants who sell goods and services through Facebook, asking them to file and pay tax after their activities.

Talking to newswire Vnexpress, Nguyen Nam Binh, deputy director of the Ho Chi Minh City Department of Taxation said, “We only want to know whether their business is for the long term, whether they have declared tax. If it is a long-term business activity and they have not declared their tax, we will ask them to do so.”

He added that only businesses that have revenues over VND100 million ($4,400) a year have to pay tax. The branches at different districts are responsible for enforcing this rule. However, according to the Binh Thanh branch, no individual or organisation came forward to work with them.

A representative of the tax department said that the department will continue to review the online trading activities via Facebook for other people and organisations and start proceedings against violators of the tax code.

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