Many 'tycoons' in Nghe An are slow to pay taxes

(Baonghean) - Nghe An's tax debt is currently 889 billion VND, the debt compared to total revenue is within the allowable level.However, one of the reasons why tax debt is difficult to reduce is that the debt of the "big guys" is still large and many businesses are still slow in paying their debts.

Identifying the "tycoons" with tax debts

Investment and Construction Joint Stock Company 24, headquartered at 4 Le Nin Street, currently owes 16.33 billion VND in tax arrears and late payment. This tax amount includes personal income tax, VAT, and late payment fees from 2010 to present. Currently, Nghe An Tax Department has enforced the tax administrative decision by withdrawing money from the company's bank accounts (the company has opened accounts at many banks).

Nghe An Tax Department also issued a document requesting Investment and Construction Joint Stock Company 24 to strictly implement the decisions on tax debt enforcement and bear all costs for organizing the implementation of enforcement measures according to the provisions of law. However, up to now, the company has not yet paid off all tax debts.

Central Construction and Consulting Joint Stock Company still owes more than 16 billion VND in taxes. Photo: Tran Chau

Minh Khang Trading Company Limited - Thanh An Minh Khang (Saigon) has a real estate project in Vinh city and currently owes 7.8 billion VND in taxes. The company's project is located in a prime location in the city, has been divided into plots and sold, and most of the households have moved in, but the tax payable to the budget has not yet been paid. Tax officials have contacted the director many times but it is very difficult to reach him.

Vietnam-Laos Economic Cooperation Corporation (headquartered at 150 Nguyen Sy Sach Street, Vinh City) is also a persistent debtor of the Nghe An Tax Department. For many years, the Tax Department has been unable to collect the debt from this unit. This company currently owes 27 billion VND in taxes. This is also the leading unit in terms of tax debt.

Next are Nghe An Bridge and Road Construction Joint Stock Company (over 18.3 billion VND), Central Construction and Consulting Joint Stock Company (over 16.8 billion VND), Construction Joint Stock Company 16 - Vinaconex (over 16.3 billion VND), Nghe An Petroleum Construction Joint Stock Company also owes over 15 billion VND, Him Lam Nghe An Joint Stock Company still owes over 6 billion VND, Linh Son Equipment Transport Trading Joint Stock Company (5.6 billion VND), Vinh Ceramic Company owes 7.7 billion VND, Dredging and Construction of Sea Road II Joint Stock Company... owes nearly 900 million VND.

The above enterprises with large tax debts are mainly enterprises operating in the real estate and construction sectors, some enterprises have debts since 2003, which are not eligible for debt cancellation. Many coercive measures have been applied to these enterprises, but they have not been effective due to the amount of inventory, debts receivable from projects and partners that have not been recovered, leading to the enterprises' financial inability.

The urban area project of Minh Khang Company Limited has divided the land into plots for sale, but the investor still owes taxes. Photo: Tran Chau

"Debt collection" is not effective

In fact, when contacting tax debtors, the director does not answer the phone, or the phone is "out of coverage area". Mr. Ngo Quang Tai - Head of Tax Debt Management Department, Nghe An Tax Department said that according to the regulations of the industry, tax officers do not go to the enterprises but only urge them by phone, deliver documents or invite them to come. However, when invited, most enterprises have not come to work, some units cannot be contacted.

Tax debts of the above enterprises have been a matter of concern for the Tax sector for many years. The Tax sector has also been actively collecting debts using many solutions such as coordinating with the police, sending text messages, enforcing through bank accounts, enforcing at the taxpayer's headquarters... However, due to many reasons, the efficiency is still not high.

According to the Head of the Tax Debt Management Department of Nghe An Tax Department, although the economy has shown signs of recovery, many businesses in the area have not yet escaped from difficulties, with large inventories, especially in the fields of construction and real estate. Some businesses are ineffective in production and business, many businesses are unable to pay debts due such as bank loans, insurance debts and are unable to collect debts from partners, leading to tax debts. Most of the remaining assets of businesses do not have much value and are being mortgaged to banks to borrow capital. Many businesses are facing bankruptcy, dissolution, and temporary suspension of business operations.

“We have implemented measures to enforce tax debt collection through accounts but it has not been effective. Many businesses have applied measures to notify that invoices are no longer valid but have not been able to recover tax debts, and late payment fees have also increased, causing businesses to face more difficulties,” Mr. Ngo Quang Tai added.

In addition, many taxpayers have not complied with tax laws, have delayed paying taxes on time, have long-term tax debts, and tax authorities have imposed fines and calculated late payment fees, leading to increased late payment fines. Some loss-making businesses have dissolved themselves and left their production and business locations, such as Vinh Ceramics Company, Seaway Dredging and Construction Joint Stock Company II, etc.

With many efforts, Nghe An Tax Department has only reduced 50 billion VND of tax debt compared to 2016 and the amount of difficult-to-collect tax debt is still large. In the coming time, Nghe An Tax Department identifies debt collection as a regular, continuous and very important task. To reduce newly arising debts, the sector assigns debt collection targets to each department and branch; resolutely implements debt collection and tax debt enforcement measures such as issuing debt and late payment notices, issuing tax debt enforcement decisions for cases requiring tax debt enforcement; advising the Provincial People's Committee on an official dispatch not to allow bidding for enterprises with tax debts of over 1 billion VND; coordinating with the Department of Natural Resources and Environment to collect tax debts of mineral exploitation enterprises; sending text messages urging tax debt payment to directors of enterprises; Publish information about taxpayers who are slow to pay tax debts on newspapers, the Tax Department's website, and on loudspeakers in wards and communes... Closely coordinate with the State Treasury, commercial banks, and credit institutions in tax debt enforcement; coordinate with departments and branches to recover tax debts.

Pearl