Is it difficult to get a red book if you buy a house cheaper than the first owner's price?

This officer said that the buyer and seller need to be present to sign something before they can issue me a new red book.

But now the seller refuses to go with him, saying that he needs an official summons, because he has already sold at a loss and is still being asked to go up and down, and he will not comply.

Now that he doesn't cooperate, will I not be able to get the red book? What should I do?

TO BE BORN(Hai Duong City)

Reply:Currently, the transfer and sale of real estate (land use rights, assets attached to land, etc.) has a "two-price" situation. Accordingly, the parties establish a transfer contract with real value (usually a handwritten contract, with or without witnesses) and a notarized or certified transfer contract with a lower value. The parties use the notarized or certified contract to declare and pay taxes with the purpose of reducing personal income tax, registration fees, etc.

To ensure that tax laws are properly enforced and to avoid tax losses, in the event that the tax authority receives a tax declaration and finds that the transfer value on the notarized contract is too low (usually many times lower), it will invite the buying and selling parties to work to clarify the actual purchase and sale value.

On that basis, the staff will encourage and persuade the parties to declare the correct actual purchase and sale price as a basis for calculating and paying taxes. In case the parties agree to re-declare the transfer price, they must cancel the notarized transfer contract and sign a new contract or sign an appendix to the transfer contract in the direction of changing (increasing) the transfer price.

When working with the parties, tax officers will provide information on similar transactions in the same area to compare the "market price" with the price stated on the parties' contracts, thereby having a basis to confirm that the price on the contract is a "virtual price".

However, the law does not stipulate a floor price (minimum price) for real estate when transferring, so in principle, the parties can buy and sell at any price according to the agreement. The parties can even give each other real estate without any payment obligation from the recipient.

With the above regulation, if your transfer contract states the correct actual price, you can complain to the tax authority about not issuing a tax notice for you to pay, causing difficulties in registering the transfer of ownership.

For tax authorities, in case there is a basis to determine that the parties have committed acts of under-declaring transfer prices to evade taxes, the tax authorities may transfer the case to the investigation agency for consideration and settlement according to their authority.

According to Article 200 of the Penal Code, tax evasion of an amount of VND 100 million or more or less than VND 100 million but having been administratively sanctioned for tax evasion or having been convicted of this crime or one of the crimes specified in Clause 1 of this Article, not having had the criminal record cleared and continuing to commit the violation may be prosecuted for criminal liability.

In case tax evasion is not serious enough to be prosecuted, it may be subject to administrative penalties.