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​Ho Chi Minh City asks Facebook cosmetic seller to pay $400k back taxes

Saturday, December 09, 2017, 11:15 GMT+7

A Ho Chi Minh City-based woman who sells cosmetic via Facebook has been asked to pay VND9.1 billion (US$400,881) in tax arrears, the municipal taxman has said.

The ‘Facebook seller’ registered her business in Phu Nhuan District, according to the Ho Chi Minh City tax department.

Local tax authorities have inspected the woman’s tax payment after receiving a tip-off that she did not declared her income honestly enough.

Following the inspection, the Phu Nhuan taxman found a difference of VND400 billion ($17.62 million) between the revenue she declared for tax payment and the real income.

The cosmetic seller has agreed to clear the payment, according to an official from the city’s tax department.

She therefore did not face charges of tax evasion, but was only asked to pay a total of VND9.1 billion, including fines for wrong tax declaration and late payment, and the tax arrears.

Tax authorities in District 9 have also asked another cosmetic seller to pay VND1.7 billion ($74,890) in fines and back taxes for similar violation.

The Ho Chi Minh City tax department said it has also asked two businesses that have income from selling stuff online to pay back taxes collectively worth VND8.7 billion ($383,260), including VND7.5 billion ($330,396) worth of value-added tax and VND1.2 billion ($52,863) in corporate income tax.

The decisions have been made during the department’s campaign to have individuals and businesses selling goods via Facebook and the Internet to fulfill their tax obligations.

The tax department has processed 13,757 suspected cases and booked 3,776 individuals and organizations with violations in tax declaration and payment.

“Many ‘Facebook sellers’ tend to make insufficient declaration or attempt to evade taxes by accepting payment in cash for their business,” one official from the Ho Chi Minh City tax department said.

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