Khanh Hoa Tax Department targets corporate tax fraud

The Khanh Hoa Tax Department is intensifying efforts to prevent businesses from exploiting legal entities to commit tax violations. Authorities have identified several fraudulent methods, including establishing shell companies that lack substantive operations, using legal entities to purchase or use illegal invoices, and falsifying costs or documents to commit tax fraud.

Other identified tactics include using changes in business addresses, legal representatives, or business lines to conceal illegal activities, as well as using identities of third parties to register businesses while different individuals maintain actual control. To combat this, the department is analyzing data regarding taxpayers, tax registrations, and invoices to identify anomalies, such as revenue or invoice volumes that are disproportionate to a company's scale or industry.

The department is also coordinating with police and other functional agencies to exchange information, verify high-risk businesses, and collect evidence. Serious violations or those with criminal indicators will be transferred to competent authorities for legal processing. Businesses are advised to proactively review their operations to ensure compliance with tax declarations, invoice usage, and revenue and cost accounting.