Land sale for 21 billion, declaration of 460 million: Clarifying the role of the buyer and notary public

The investigation agency said it would investigate and clarify the roles of the parties in the case of declaring prices lower than reality for the purpose of tax evasion in Quang Nam.
Recently, the Investigation Police Department of Thang Binh District (Quang Nam) executed an order to temporarily detain defendant Le Van Thanh (44 years old, residing in Ha Trung Street, Cam Nam Ward, Hoi An City, Quang Nam) for investigation. about tax evasion.
Declaring low prices to avoid taxes
According to the investigation, in 2019, Le Van Thanh signed a contract to transfer land use rights for a 4,500 m2 plot of land in Duy Ha village, Binh Duong commune, Thang Binh district to a couple in Ho Chi Minh City.
This land purchase and sale contract represents a transfer value of 460 million VND. However, during the investigation process, the Investigation Police Department of Thang Binh District Police proved that the actual transaction amount was up to 21 billion VND.
The police determined that Thanh's declaration of the transfer price was many times lower than reality with the purpose of reducing the personal income tax that should have been paid (more than 410 million VND), the registration fee to be paid (more than 100 million VND). million dong). Since then, it has caused a loss of more than 510 million VND to the state budget.
Captain Pham Van Dao, Criminal - Economic - Drug Police Team of Thang Binh District Police, said that defendant Thanh's behavior violated the provisions of Point b, Clause 2, Article 200 of the 2015 Penal Code (crime of tax evasion). .
According to Captain Dao, tax evasion in real estate transactions occurs a lot in society but prosecution is rare. In this particular case, defendant Thanh made a tax declaration contract that was too low compared to the actual value, resulting in a very large amount of tax fraud.
“Currently, the investigation agency (CQDT) is continuing to expand the case. This case also involves many people including the buyer, the seller or the notary office (VPCC). The Investigation Police have worked with the parties but there is not enough basis, so they have only prosecuted defendant Thanh" - Captain Dao said.
What are the responsibilities of the notary office?
Also according to Captain Dao, the Investigation Agency will continue to work with the parties to have documents that accurately reflect the nature of he notary office's activities at the time of contract notarization.
“Is the value of 460 million VND of the land plot given by the seller and buyer or by he notary office? In case both sellers and buyers agree and request the notary office to prepare, there is no basis for handling. However, if the notary office has interests, instructions or contracts, they will consider their responsibilities" - Captain Dao said about how to handle related parties.
In addition, the investment agency will also determine the responsibilities and interests of the buyer, from which there will be a basis for handling and collecting taxes (if any). Even if the buyer has no benefits, but the buyer knows the behavior and purpose of signing a contract lower than the actual value to reduce taxes, the buyer must be responsible. "To what extent is responsible, the agency will prove in phase 2 of the case" - Captain Dao said.
Talking more with reporters, Lieutenant Colonel Tran The Dung, Deputy Head of Thang Binh District Police, said that when buying and selling assets, especially real estate, the seller and buyer agree to make a contract with a lower value. Actual transaction value for tax reduction occurs a lot.
“In fact, the problem of tax evasion when buying, selling, and trading real estate is widespread. This is a lesson to warn individuals and trading organizations to comply with regulations and avoid violations of the law. It is recommended that people and businesses when transacting all types of assets, especially land, must comply with the law" - Senior Lieutenant Colonel Dung recommended.
Also according to Lieutenant Colonel Dung, the step of appraising property value when fulfilling tax payment obligations is not strict. The responsibilities of the tax authorities and the notary office have not yet been bound. “The tax authorities know that this land has a very high value, not 460 million VND. Or the notary office knows the actual value of this land plot is billions of dong... but they do not have the right to appraise the property, leading to tax loss" - Lieutenant Colonel Dung shared.
Source: PLO.