The Tax Department has issued an open letter to taxpayers nationwide, appealing to business owners, business households, and individuals involved.
In the current economic context, maintaining production and business activities and fully meeting obligations to the state budget remains challenging for many enterprises and small operators.
The tax authority notes that ceasing business operations is not desirable, but when activity ceases, taxpayers should proactively complete tax obligations and related procedures before dissolution or cessation under regulations.
Through their administrative oversight, the Department records that some enterprises and business households have ceased operations but have not completed the procedures to revoke the validity of their tax codes. In addition, some cases no longer operate at the registered address, and the legal representative has not contacted the tax authority to finalize procedures, causing files to linger.
The Department says this situation can generate additional tax liabilities and directly affect the taxpayers' lawful rights and legitimate interests.
The tax authority also warns of cases where individuals or entities misuse the formation of enterprises or business households not for genuine business purposes; misuse electronic invoices to conduct illicit transactions, fraud, and gain at the expense of the state budget.
Notably, there have been instances where individuals' personal information has been forged or used without permission to establish enterprises or business households, causing people to be registered as owners without their knowledge or involvement.
To address this, the Tax Department is rolling out a nationwide campaign titled "Clean Tax Codes - Unblock Bottlenecks in Business." Tax authorities at all levels will review and standardize tax code data; accurately determine taxpayers' operating status; classify records requiring support; and determine cases needing activity restoration, revocation of tax code validity, or coordination with competent authorities to address tax, invoicing, and corporate risks.
Nevertheless, the Department emphasizes that data cleansing will be effective only with proactive cooperation from taxpayers through verifying information, providing documents, and clearly stating whether they need to restore or cease operations.
The actions outlined may affect tax liabilities, the validity of tax codes, and compliance costs. Non-cooperation may lead to enforcement actions under applicable law, including penalties, and increased compliance costs. The department aims to prevent misuse of corporate bodies and electronic invoicing and to foster a transparent, healthy business environment.
The department pledges to facilitate compliance for taxpayers who cooperate and to continue engaging with the business community and citizens to improve tax data integrity. In the near term, a lookup feature will be rolled out on the eTax Mobile app to help citizens monitor and promptly detect impersonation attempts to form or register businesses.
Taxpayers who receive notices are urged to respond promptly to guidance from the tax authority to comply with obligations.
