Such improper documentation includes creating fake invoices or sale contracts, fraudulent data input, illegal transactions and wrongly listing prices and values in invoices or sales contracts with the aim to evade tax.

If such documentation is found after checks, action will be taken according to the re-verification procedures of export/import prices as notified in June last year, the ministry said in a statement.

The ministry’s real price valuation team will check and take action to uncover such wrong doings.

If violations are found by the team, company directors or those responsible for the documentation will be summoned and asked to provided additional detailed documentation such as letters of credit and bank statements to verify the actual transfer prices with those submitted when applying for export licences and import declarations, the ministry said.

If cases where improper documentation is provided, the companies or organisations will have to pay the difference in taxes and face other possible action, although the ministry did not elaborate on what those actions might be.

The companies found to be at fault will face action under the Import-Export Law, the Commercial Tax Law for tax evasion, and also the relevant laws for fraud, the statement added.

Source: https://www.mmtimes.com/news/govt-take-action-against-improper-trade-documentation.html