Nghe An: Many businesses suddenly... 'disappeared'

Van Truong• March 11, 2023 09:52

(Baonghean.vn) - Recently, in Nghe An, there have been many cases of taxpayers suddenly 'disappearing' and abandoning their business addresses while still owing taxes. This has caused difficulties for tax management in the area.

Manh Cuong Trading and Transport Services Company Limited, with tax registration address at Hamlet 3, Hong Long Commune, Nam Dan District, has removed its signboard. Photo: Van Truong

According to records, in Nam Dan district, there are currently quite a few taxpayers who have abandoned their business addresses before completing their tax obligations. For example, at the time when the officers of the Song Lam II Tax Department went to inspect the Manh Cuong Trading and Transport Services Company Limited, at the tax registration address in Hamlet 3, Hong Long Commune, Nam Dan District, where the company's sign used to be, there was now only a steel frame left. A local resident said that due to business losses, the Director of Manh Cuong Trading and Transport Services Company Limited went to the South to do another job!

In addition, many other enterprises such as Hung Khanh Construction - Trade Services Joint Stock Company, with tax registration address at Dong Trung hamlet, Hung Tien commune, Nam Dan district; Xuan Lam Construction Joint Stock Company, Thanh Phat Company Limited, Hung Tay commune, Hung Nguyen district... have all removed their signs and are no longer operating at the registered address.

Officials from the Song Lam II Regional Tax Department went to Xuan Lam Construction Joint Stock Company in Hung Tay Commune, Hung Nguyen District, but only found "closed doors and bolts" and no longer had the company's signboard. Photo: Van Truong

According to the report of the Song Lam II Tax Department, in the two districts of Hung Nguyen and Nam Dan, there are currently 1,739 businesses and organizations in operation, of which 592 businesses and taxpayers have abandoned their business addresses, with a total tax debt of over 12 billion VND.

Ms. Tran Cam Van - Head of the Tax Inspection Team, Song Lam II Tax Department said: Enterprises that have stopped operating but are in tax debt in Hung Nguyen and Nam Dan can be classified into groups.

Firstly, the group of businesses is established but does not conduct business, does not have a clear business direction, causing the business to stop operating, close down, and abandon its business address.

For this group, according to the provisions of the Law on Tax Administration, even if the enterprise has no revenue, it still has to fulfill the obligation to pay business license fees and declarations such as value added tax, personal income tax, corporate income tax, etc. However, because the enterprise has not grasped the provisions of tax law, they do not fulfill the declaration obligation, leading to administrative fines and late payment fees.

Some businesses in Nam Dan do not operate at their registered location but instead operate at home, making tax management very difficult. Photo: Van Truong

The second group is businesses established for practical business purposes, but during the business process, the company does not develop in line with changes in socio-economic conditions. For example, there are businesses that fall into difficult situations due to the impact of the Covid-19 epidemic, or business owners have serious illnesses. There are also businesses that have to borrow capital from banks to invest in business but then suffer losses, leading to insolvency...

Hung Khanh Construction - Trade Services Joint Stock Company, with tax registration address at Dong Trung hamlet, Hung Tien commune, Nam Dan district, does not have a company signboard. Photo: Van Truong

For example, Hoang Long Mangan Company Limited, with its registered business address at Khe Huong hamlet, Thuong Tan Loc commune, Nam Dan district, owes 208 million VND in taxes. Tay Truong Son Investment and Construction Joint Stock Company, with its registered tax address at Km31, National Highway 46, Xuan Hoa commune, Nam Dan district, still owes the state budget 3.9 billion VND; Hung Khanh Construction - Trade Services Joint Stock Company, with its registered tax address at Dong Trung hamlet, Hung Tien commune, Nam Dan district, still owes 93 million VND to the state budget.

In 2022 and 2023, Bac Nghe Tax Department also has 150 enterprises not operating at the registered address (of which 108 enterprises in 2022 and 42 enterprises in 2023).

At the Vinh City Tax Department, the number of enterprises that stopped operating, dissolved, or went bankrupt in February was 76, and the cumulative number for the first two months was 118. The number of enterprises that temporarily stopped operating in February was 50, and the cumulative number for the first two months was 323.

To recover tax debts, in February 2023, the Song Lam II Regional Tax Department implemented measures such as sending debt notices to taxpayers, enforcing accounts, enforcing invoices, issuing notices of temporary suspension of entry and exit for representatives of enterprises and organizations; publicizing tax-indebted companies on mass media; issuing Decisions on enforcing accounts in 179 cases...

Thanh Phat Company Limited, Hung Nguyen District has removed the company name sign. Photo: Van Truong

It is known that in recent years, the number of enterprises in Nghe An province abandoning their business addresses has been increasing while they still owe taxes. Taxpayers abandoning their business addresses causes difficulties in tax management, tax authorities cannot send enforcement decisions, nor apply sanctions to handle or carry out procedures to terminate the validity of tax codes...