Tax Authority Highlights Bảo Tín Minh Châu Case Causing 150 Billion VND in Tax Loss

The Tax Department said the practice of enterprises using two parallel accounting systems to conceal revenue and evade taxes is evolving in a complex manner, with authorities warning that the scale and severity of violations are increasing.

Violation described as tax evasion through parallel accounting

At the Ministry of Finance’s Q1 2026 press briefing on April 9, Deputy Head of the Tax Department Le Long said that using two parallel accounting systems—one to monitor business operations and another to provide data to state management agencies—constitutes a serious violation of law intended to evade taxes or commit fraud in the preparation and issuance of financial statements.

Tax authorities said the behavior not only deprives the budget but also harms the business environment. They noted that setting up two accounting systems can be done systematically and may be difficult to detect without auditing or in-depth investigation.

Cases uncovered show rising losses

Authorities cited examples of detected schemes, including:

• Hoàng Long Company, which established two accounting ledgers to conceal revenue, leading to more than 241 billion VND in tax losses.
• Bao Tin Minh Chau Co., Ltd, which used two software systems to manage and declare taxes, causing about 150 billion VND in losses.

Officials said these cases indicate that the scale and severity of violations are rising.

Root causes and compliance risks

Le Long said the root causes include limited adherence to law and business ethics, along with motives to maximize profits and reduce tax obligations. He added that some enterprises have not fully recognized legal risks or believe the conduct can be concealed.

Electronic invoicing providers to submit customer lists

To strengthen oversight, tax authorities requested organizations providing electronic invoicing solutions to compile a list of customers using accounting software by March 31, submit it by April 8, and update it monthly. Officials said the information will help track how many businesses and entities use accounting software, enabling processes to support tax declarations, payments, and compliance management.

As of April 7, the tax authority had received lists from 42 organizations totaling 12,809 customers using accounting software. The data will continue to be compiled nationwide.

Based on the collected information, the tax authority said it will review and issue warnings for organizations, enterprises, and households suspected of using multiple accounting books from April 2026 for tax administration purposes.

Measures to curb violations and improve monitoring

Tax authorities said they are also implementing measures to curb violations, including tightening cash-flow controls, reducing cash transactions, and increasing data connectivity between the tax agency and banks to monitor high-value transfers.

Officials said management of electronic invoices and accounting software is being strengthened, including requiring real-time data connections of sales data to the tax authority in certain sectors. Software providers are also required to supply customer lists to support oversight.

Coordination with enforcement agencies

The tax authority said it cooperates with enforcement agencies to investigate and prosecute cases of tax fraud. When signs of violations are detected, relevant files are forwarded to the police.