Online Business Tax Evasion: Numerous Schemes To Defraud Revenue Uncovered

A series of individuals and organizations conducting online businesses on platforms such as TikTok, Shopee, Lazada, etc., have been prosecuted in Ninh Thuan, Hoa Binh, Hanoi, and Ho Chi Minh City for tax evasion with revenues amounting to tens, even hundreds of billions of Vietnamese Dong.

Multiple Online Business Operators Prosecuted For Tax Evasion With Revenues Ranging From 40 To 160 Billion VND

Recently, authorities have continuously detected and initiated legal proceedings in numerous cases related to tax evasion in the online business sector. These individuals and entities have generated “huge” revenues ranging from tens to hundreds of billions of Vietnamese Dong but only declared a small portion to fraudulently evade taxes, causing significant losses to the state budget.

Ninh Thuan: female tiktoker prosecuted for evading over 241 million vnd in taxes

On March 9, 2025, the Ninh Thuan Provincial Police prosecuted a female TikToker for the crime of “Tax Evasion.” According to the investigation, from May 2023 to September 2024, this individual livestreamed sales on the TikTok platform, primarily selling apparel products, and achieved a total revenue of over 18 billion VND. However, this female TikToker only declared a revenue of 2 billion VND, thereby evading taxes amounting to over 241 million VND.

Prior to this, the Ninh Thuan Provincial Tax Department had reviewed online business accounts on social media and discovered over 300 individuals showing signs of concealing revenue, with the total amount of suspected tax evasion reaching 1.2 billion VND.

Hoa Binh: chairperson of online business company prosecuted for evading nearly 2 billion vnd in taxes

On February 14, 2025, the Hoa Binh Provincial Police prosecuted Ms. Truong Thi Vinh (born in 1980, residing in Yen Thuy district), who holds the position of Chairperson of the Board of Directors of VK Market Co., Ltd., also for the crime of “Tax Evasion.” In 2023, Ms. Vinh directed online goods trading activities but did not fully declare revenue, leading to tax evasion amounting to over 1.8 billion VND.

The Hoa Binh Provincial Tax Department also announced the results of its review, revealing 150 individuals and online business entities in the locality showing signs of tax evasion, with an estimated total undeclared revenue of over 50 billion VND.

Hanoi: online phone business “tycoon” evades over 2.5 billion vnd in taxes

At the end of 2024, the Hanoi City Police prosecuted Do Manh Cuong (born in 1986, residing in Long Bien district) for the crime of “Tax Evasion.” From 2019 to the present, this individual traded in phones and accessories on major e-commerce platforms such as Shopee, Tiki, and Lazada, achieving a “huge” revenue of over 160 billion VND. However, Cuong used multiple personal accounts to receive payments, with the aim of evading taxes amounting to over 2.5 billion VND.

Previously, the Hanoi City Tax Department had inspected over 5,000 online business accounts and discovered a total undeclared revenue of up to 300 billion VND, with the amount of suspected tax evasion being approximately 15 billion VND. Notably, in the last two months of 2024, two e-commerce tax evasion cases were prosecuted in Hanoi, with individuals having revenues of hundreds of billions of VND using sophisticated tactics such as keeping two sets of accounting books to conceal actual revenue.

Ho Chi Minh City Handles Numerous Online Business Tax Evasion Cases, Recovers Hundreds Of Billions Of VND

In Ho Chi Minh City, between August and December 2024, authorities also strongly dealt with many cases of online business tax evasion. Notably, on August 10, 2024, the Ho Chi Minh City Police prosecuted an individual (residing in Tan Binh district) engaged in online fashion business with a revenue of over 40 billion VND, evading 1.2 billion VND in taxes.

By December 20, 2024, the Ho Chi Minh City Tax Department announced the recovery and imposition of fines totaling 256.4 billion VND from 4,119 online business organizations and individuals. Simultaneously, the department also discovered over 3,000 individuals (in October 2024) with a total undeclared revenue of over 200 billion VND, and serious cases have been transferred to the investigating agency for handling in accordance with the law.

Serious Legal Consequences For Tax Evasion

According to Article 200 of the Criminal Code, tax evasion can be punished by imprisonment for up to 7 years or a fine of multiple times the evaded tax amount. Currently, authorities are continuing to expand the investigation to recover taxes and strictly handle violations of the law in the online business sector.