Publicize the names of tax-indebted businesses so that 'debtors' know 'shame'

The resolution of the regular Government meeting in May continues to require the financial sector to strengthen the effective implementation of measures to combat revenue loss and tax arrears. According to Mr. Mai Son, Deputy Director of the Hanoi Tax Department, debt collection requires the entire government system to participate, not just the tax sector.

Mr. Mai Son, Deputy Director of Hanoi Tax Department

This year, the Hanoi Tax Department must collect 22,500 billion VND in tax, fee, late payment and land use fees. Sir, what has the tax sector done to collect this arrears?

We implement measures to recover tax arrears in accordance with the provisions of the Law on Tax Administration, including measures to publicly announce tax debtors. While the Hanoi Tax Department announced 7 lists of tax-debting enterprises in 2015, it has announced 6 lists since the beginning of the year.

Recently (6th batch), we announced the list of 152 enterprises with tax debts totaling 184,198 billion VND. Of which, 13 projects owe land rent of 35,138 billion VND and 139 enterprises owe taxes and fees of 149,061 billion VND.

He said that publishing the identity of tax-indebted businesses is an effective measure to collect outstanding debts. Where does that effectiveness show?

In 2015, the Hanoi tax sector recovered 9,758 billion VND in tax arrears. After 7 rounds of publicizing 627 enterprises with tax, fee and land use debt, 311 enterprises arranged financial resources to pay tax debt to the state budget with the amount of nearly 1,792 billion VND, of which 30 enterprises paid all tax debt. In the first 5 months of this year, after publicizing 655 enterprises with tax, fee and land use debt, 322 enterprises paid their debt to the state budget.

There are still many businesses deliberately delaying tax payment. Illustrative photo.

For businesses that deliberately delay paying taxes, what will the tax industry do next?

For those who deliberately delay, the tax authorities continue to use debt enforcement measures as stipulated in the Law on Tax Administration. In addition to announcing the identity of tax-indebted enterprises, we enforce the accounts of tax debtors and announce that the invoices of tax debtors are no longer valid.

In the first quarter, we issued 2,570 decisions to enforce the withdrawal of money from bank accounts of 1,555 enterprises with a total debt of VND 2,403 billion. After a certain period of time after publicly announcing the tax debt of enterprises, if the enterprises do not pay money to the state budget, we will enforce the withdrawal of money from bank accounts to collect the debt and declare the invoices as no longer valid.

According to Investment