Ninh Hiep Market Stalls Massively Shut Down: Suspicions Of Tax Evasion As Authorities Step In

Ninh Hiep market stalls massively shut down in recent days, creating a stir in Gia Lam, Hanoi. This sudden closure suspiciously aligns with increased inspections by functional forces. Many are questioning if this is a tactic by business households to “evade” tax authorities, and information from the tax agency reveals several surprises.

Numerous Stalls “Disappear” As Tax Authorities Launch Campaign

According to observations, quite a few stores at Ninh Hiep Market ceased operations as soon as inter-agency inspection teams began their activities. This situation has led many residents and other business households to question this move. Are stall owners intentionally avoiding tax obligations?

A representative from Tax Department Region I (managing Hanoi and Hoa Binh areas) confirmed that this inspection involves coordination with various units, such as market management. However, the tax agency primarily focuses on propagating and guiding business households and individuals to register and declare taxes, install the eTax mobile application, and use electronic invoices generated from cash registers in accordance with Decree 70 of the Government. Tax management is carried out based on a database system for business households and individuals.

New Electronic Invoice Regulations Take Effect: Pressure On Business Households

The campaign launched by the Gia Lam District Tax Team, Market Management Team No. 8, and Ninh Hiep Ward People’s Committee took place just before June 1, 2024, when the new regulations in Decree 70 officially came into effect. Accordingly, 100% of business households with revenue exceeding 1 billion VND are required to use electronic invoices generated from cash registers, regardless of whether they declare taxes under the lump-sum method or declaration method.

The tax agency affirms that using electronic invoices not only helps transparentize tax management and combat tax revenue loss but also facilitates traceability of goods.

Over 2,200 Business Households In Ninh Hiep, But Many Have Not Declared Taxes

The Gia Lam District Tax Team currently manages over 2,200 business households in Ninh Hiep ward. However, a concerning reality is that many business households and those with income from property rental activities have not yet declared taxes and are not yet under management.

In the coming time, the tax team will strengthen coordination with business registration agencies and local authorities to share information, ensuring strict management of business households and individuals from the very beginning of their operations. At the same time, the tax agency will resolutely handle or propose handling cases of deliberate violations, even revoking business registration licenses for cases that violate the law but fail to comply. Identity verification measures will also be implemented.

Cases of resistance and procrastination in tax declaration and payment will be strictly dealt with according to legal provisions.