Strong solutions needed in tax debt collection

(Baonghean) -Currently, in addition to businesses that pay high, correct and timely taxes, there are still many businesses with tax arrears. The total amount of tax arrears in the area has reached 800 billion VND, higher than the national average. Many solutions to collect arrears have been implemented drastically but the amount of tax arrears is still increasing, notably, many businesses do not declare, do not comply with tax laws, many businesses stop doing business or flee...

The leader of Hung Nguyen Tax Department said: In Hung Nguyen area, there are currently many enterprises with large tax debts such as: Hai Van Construction and Trading Company Limited, business line of construction, transportation and trading of construction materials, currently owes 7,084 million VND in tax, Binh Nhi Company Limited, business line of transportation, construction materials currently owes 463 million VND; Dai Phu Company owes 816 million VND, Phu Duc Company Limited owes 233 million VND... Not only in Hung Nguyen, the tax debt situation is common in branches, localities, and also in enterprises managed by the Tax Department. Many enterprises have large debts such as: Vietnam-Laos Cooperation Corporation Limited, Investment and Construction Joint Stock Company 24, Investment and Development Joint Stock Company Central, Nghe An Bridge and Road Construction Joint Stock Company, Vinaconex 20 Joint Stock Company, Joint Stock Company 473, Dredging Seaway 2 Company, Que Phong Hydropower Joint Stock Company...

Recently, tax debt collection has emerged as a "hot" issue that has been directed strongly, but the amount of tax debt is still increasing. Nghe An Tax Department has assigned specific targets for tax debt collection in 2013 to each unit with the following targets: Total debt by December 31, 2013 does not exceed 5% of the estimated budget revenue in 2013; Reduce 100% of debt awaiting adjustment by December 31, 2012, reduce 50% of debt awaiting settlement compared to December 31, 2012; Collect 80% of debts in the group of tax debts up to 90 days and over 90 days from December 31, 2012; The rate of tax payment extension applications resolved within the prescribed time limit is 90% or more.

Central Investment and Development Company is one of the enterprises with large tax debts in the area.

The Tax Department's leaders said: In the first 5 months of 2013, the Tax Department has seriously implemented debt management measures such as: Late payment penalties, tax debt enforcement, asset seizure, announcements on mass media, announcements on ward and commune loudspeakers; at the same time, sent an official dispatch to the State Bank requesting direction to inspect commercial banks and credit institutions to coordinate in enforcing tax administrative decisions; advised the Provincial People's Committee to issue a directive on strengthening the direction of tax debt collection... Deploying sending text messages via mobile phones to business directors to urge tax debt payment and fine payment.

As of May 31, 2013, Nghe An Tax Department has issued 12,657 notices of late payment fines with a fine of nearly 34 billion VND. At the same time, 685 cases of tax debt enforcement were carried out by withdrawing deposits from bank accounts with a tax collection of more than 29.5 billion VND, 33 cases of tax debt enforcement by seizing assets with a collection of 100 million VND; 2 cases of tax debt enforcement by collecting through a third party with a fine of 4.3 billion VND; 5 cases of tax debt enforcement by suspending the use of invoices with a tax collection of more than 7 billion VND.

However, the tax arrears are still large, causing many people to be skeptical about solutions to recover arrears and prevent revenue loss. Enterprises are still procrastinating, some enterprises still misappropriate VAT, prolonging the payment time; many real estate enterprises, although having collected money from the people, still do not pay taxes, do not invest in infrastructure, many enterprises with tax arrears have stopped doing business or absconded such as: Tien Hai LLC, Loc Phat LLC, Anh Tuan LLC... The leader of the Tax Inspection Department of Nghe An Tax Department said: In the first 5 months of 2013, Nghe An Tax Department has transferred the files of 5 units to the police for handling. They are: Ha An LLC (Vinh City), Son Thuy LLC (Quynh Luu); Duy Hung LLC (Vinh City); Hung Kiet LLC (Dien Chau) and Duong Long Private Enterprise (Vinh City).

At the meeting on June 14 between the provincial leaders and the Nghe An Tax Department, Mr. Hoang Viet Duong - Director of the Department of Finance said: Although the situation is really difficult, when talking about businesses in difficulty, we need to grasp how difficult they are. Who is really in difficulty, who is taking advantage of the situation to misappropriate tax money? Regarding tax debts from real estate businesses: there also needs to be a meeting between the Provincial People's Committee, the sectors and these businesses, to see which businesses have been allocated land but have not paid, which businesses have not been allocated land but have collected money from the people...

In the near future, it is expected that some enterprises that are slow to pay tax debts will be put on the list of "cases to be prosecuted". Comrade Nguyen Xuan Duong - Chairman of the Provincial People's Committee at the meeting on June 14 with the Tax Department also said: Prosecuting some enterprises that are slow to pay tax debts is not only a matter of tax collection but also ensuring discipline and social justice. In addition to strong solutions, the Tax sector also needs to have more dialogue with enterprises and proactively coordinate well with other sectors in tax collection.

Article and photos: Chau Lan