(ĐN)- With the aim of strengthening the fight against transfer pricing, Dong Nai Department of Taxation carried out inspections at local enterprises reporting losses and exhibiting signs of transfer pricing, retrieving nearly VND700 billion since 2016 until now.
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(ĐN)- With the aim of strengthening the fight against transfer pricing, Dong Nai Department of Taxation carried out inspections at local enterprises reporting losses and exhibiting signs of transfer pricing, retrieving nearly VND700 billion since 2016 until now.
The positive results are not only in terms of tax arrears collected but also in raising awareness among enterprises.
Vice Chairman Tran Van Vinh of the provincial People’s Committee said that the transfer pricing has become sophisticated in Dong Nai in recent time. The province suggested Department of Taxation, Department of Planning and Investment, and Dong Nai Industrial Zones Authority (DIZA) to make a concerted effort to fight transfer pricing to cope with lost budget revenues.
Good communication and exchange of information between these agencies would make the fight against transfer pricing more effective, said Vinh.
Currently, Dong Nai has more than 1,000 foreign enterprises, including many multinational corporations. Transfer price inspections began in Dong Nai in 2015, when the General Department of Taxation established a transfer pricing inspection offices in the province. In the three years inspections were conducted there were 60 cases completed.
Mr Nguyen Van Cong, Head of Dong Nai Taxation Department, agrees that transfer pricing inspections are a difficult task. Findings must be based on evidence and arguments and made in a proper and consistent manner to ensure a fair business environment between State agencies and enterprises.
In some transactions, tax officials said stake sellers report no profit while the tax authority has no evidence to prove otherwise.
“But in recent years inspections have achieved results,” he said. The establishment of transfer pricing inspection offices is an important step in the continued fight against transfer pricing, partly controlled transfer pricing activities and declarations by businesses have gradually become more orderly.
Reported by K.M
