Nghe An strengthens tax debt management solutions

(Baonghean) - By the end of May 2017, total tax debt in Nghe An was 961 billion VND. Of which, recoverable debt was 624 billion VND; uncollectible debt was 337 billion VND.

Comrade Trinh Thanh Hai - Party Secretary, Deputy Director of the Provincial Tax Department gave an interview to Nghe An Newspaper.

PV:Could you tell us about the current tax debt situation in Nghe An; the main debts and the debt situation at the branches?

Comrade Trinh Thanh Hai:In 2016 and the first 5 months of 2017, the entire Nghe An Tax sector has implemented many measures to manage tax debts such as: Assigning debt collection targets to each department and branch; resolutely implementing debt collection and tax debt enforcement measures (CCNT) such as issuing debt and late payment notices, issuing CCNT decisions for cases requiring tax debt enforcement; advising the Provincial People's Committee on official dispatches not to allow bidding for enterprises with tax debts of over 1 billion VND; coordinating with the Department of Natural Resources and Environment to recover tax debts of mineral exploitation enterprises; sending text messages to urge tax debt payment to directors of enterprises; publishing information about taxpayers who are slow to pay tax debts on newspapers, the Tax Department's website, and loudspeakers of wards and communes...

At the same time, strengthen close coordination with the State Treasury, commercial banks, and credit institutions in tax debt enforcement; coordinate with departments and branches to collect tax debts. Therefore, tax debt management has achieved significant results, contributing significantly to budget collection and completing the political tasks of the province and the sector.

Officers of the Tax Debt Management Department discuss tax debt settlement. Photo: Chau Lan

As in 2016, the branches have calculated late payment fees 184,093 times, the amount of late payment is 79 billion VND. Enforced tax debt collection for 17,989 times of taxpayers, the amount collected through CCNT is 186.8 billion VND. The branches have reduced debt compared to December 31, 2015 including: Tan Ky 2 billion VND, Hoang Mai TX 1.6 billion VND, Quy Chau 1 billion VND...

In the first 5 months of the year, the work of fighting tax arrears continued to be carried out vigorously. As a result, by May 31, 2017, the total tax debt was 961 billion VND. Of which, the recoverable debt was 624 billion VND; the uncollectible debt was 337 billion VND (including: Tax debt of taxpayers (NNT) considered by law to be dead, missing, or lacking civil capacity without a request for debt cancellation; tax debt related to criminal liability that has not yet fulfilled its tax payment obligation; tax debt of taxpayers who have abandoned their business address; taxpayers awaiting dissolution; taxpayers who are unable to pay and tax debt for which all tax debt enforcement measures have been applied.

Although the Tax Department has implemented drastic debt collection measures, the debt amount compared to the same period still increased by 4%. The main debts are mainly from real estate businesses, transportation, construction, mining and manufacturing enterprises, etc. Some branches with increased tax debts include: Vinh City, Yen Thanh, Quy Hop, Hoang Mai Town, Quynh Luu, Do Luong, Que Phong.

The reason for the increase in tax debt is due to the impact of the prolonged economic recession, so some businesses are still facing difficulties; debt collection has improved but slowly, mainly because the State currently owes enterprises capital construction units, there are few new construction projects, and the slow disbursement progress affects the collection of tax debt.

Construction enterprises have had more positive prospects in terms of employment. Photo: Chau Lan

PV:In the past time, how has Nghe An Tax Department controlled the increase in tax arrears and the province's tax debt in relation to the whole country, sir?

Comrade Trinh Thanh Hai:The goal of the Tax sector is to effectively manage debt, striving to achieve the debt collection rate assigned by the General Department of Taxation. In fact, recently, Nghe An Tax Department has drastically implemented tax debt enforcement measures, such as: Enforcement via bank accounts, debt collection via third parties, enforcement on invoices, and recommendations to revoke business registration certificates. At the same time, debt classification is carried out, debt collection measures are applied such as phone calls to urge debt collection, text messages via the phone of the head of the enterprise, publicizing tax debt information on newspapers, radio, loudspeakers, etc. to recover outstanding debts and significantly reduce the increase in tax debt.

Therefore, Nghe An's current tax debt is lower than the national average. The province's tax debt/total budget revenue ratio is 5.7% and lower than the national average of 9%.

PV:Could you please tell us some solutions to increase tax debt collection in the coming time in the provincial Tax Department?

Comrade Trinh Thanh Hai:Nghe An Tax Department identifies debt collection as a regular, continuous and very important task. In the coming time, the Tax Department will resolutely implement measures to urge debt collection and enforce tax debt, including classifying tax debts, issuing debt and late payment notices, sending text messages to urge tax debt payment to business directors; publishing information about taxpayers who are slow to pay tax debts on newspapers, radios, ward and commune loudspeakers, the Tax Department's website, etc., to issuing enforcement decisions for cases of procrastination and slow tax debt payment.

At the same time, the Tax Department will send an official dispatch to the People's Committees of districts, cities and towns to coordinate and direct local departments and branches to collect tax arrears; request the Provincial People's Committee not to allow enterprises with large tax debts of over 1 billion VND to participate in bidding and implement new projects. The Tax Department will coordinate with the Department of Natural Resources and Environment to collect tax arrears of mineral exploitation enterprises. At the same time, strengthen close coordination with the State Treasury, commercial banks, and credit institutions in tax debt enforcement; coordinate with departments and branches to establish interdisciplinary teams to collect tax arrears.

PV:Thank you comrade!

Pearl(Perform)