Vietnam Shames Tax Evaders

July 24, 2015 Taxation in Vietnam

HANOI – The government is publicly naming businesses with overdue tax obligations, before resorting to taking the money directly from the offenders’ bank accounts.

The government of Vietnam is using name-and-shame tactics to coerce businesses with overdue tax obligations to pay up.

The national tax authority has issued a public list naming 600 companies with tax debts which were at least 121 days old at the end of June.

The total of the taxes owing by the delinquent businesses is approximately VND 12.658 trillion.

The new tactic has already seen moderate success with at least 10 percent of the businesses coming forward already to pay back all the overdue taxes, with even more coming forward to pay back a portion of the taxes owed.

The tax authorities are reputed to have leaked similar list to the media in the past, however, this is the first time that such an action was taken publically.

Some experts have come forward to say that even authorities have further tools to collect the owed taxes, as tax authorities have the power to collect taxes directly from bank accounts, or to request for banks to freeze the accounts of non-compliant businesses.

Photo By: Miran Rijavec