Many solutions to collect resource tax debt

(Baonghean) - The debt of mineral resource tax in Nghe An province is worrying, because the amount of tax debt that is difficult to collect as of July 2014 is: 44.5 billion VND. With the strong direction from the Provincial People's Committee, good coordination between the tax sector and the natural resources and environment sector, up to now, more than 20 billion VND of tax arrears from this sector have been collected, while at the same time, the dissemination of documents and policies to businesses has been strengthened.

Faced with the situation of outstanding mineral resource tax debts, the Provincial People's Committee issued an official dispatch, requesting the Nghe An Tax Department to review enterprises licensed by competent authorities to explore and exploit minerals in the province (including cases where the license has expired) and have been subject to administrative measures by the tax authorities to collect tax debts, fees and charges payable according to regulations but have not complied; report the implementation results and advise on further handling measures to submit to the Provincial People's Committee for consideration and decision. The Chairman of the Provincial People's Committee also assigned the Department of Natural Resources and Environment, based on the reported data of the Nghe An Tax Department, to compile a list and advise the Provincial People's Committee to issue a written notice to enterprises to fulfill their tax, fee and charge obligations according to the provisions of law.

Stone exploitation and production at Thanh Xuan Company Limited (Quynh Xuan ward, Hoang Mai town).

Implementing the direction of the Provincial People's Committee, the Tax Department has reviewed mineral exploitation enterprises that still owe taxes and the Tax Department has taken measures to collect and enforce tax debts but has not yet collected them. Of which, 58 enterprises have difficult-to-collect tax debts with outstanding tax and fines of 44.5 billion VND. Nghe An Tax Department also sent an official dispatch requesting the Department of Natural Resources and Environment to coordinate in collecting tax debts of mineral exploitation enterprises. Nghe An Tax Department requested the Department of Natural Resources and Environment to apply measures to notify in writing enterprises with mineral exploitation activities to pay the outstanding tax and fines to the State budget.

After 90 days from the date of issuance of the notice, if the enterprises do not comply, it is recommended to revoke and terminate the validity of the Mineral Exploitation License according to the provisions of Article 58, Mineral Law No. 60/2010/QH12. For enterprises applying for new issuance or extension of mineral exploitation license, there must be confirmation of tax obligation fulfillment from the tax authority.

With timely advice and strong direction from the Provincial People's Committee, Nghe An Tax Department has collected nearly 20 billion VND in outstanding mineral resource tax. Among them: Xuan Quynh Company Limited (Hoang Mai Town) paid 800 million VND, still owing 1.2 billion VND, Phu Nguyen Thanh Company Limited paid 215 million VND, still owing over 500 million VND, Phu Cuong Company Limited paid 443 million VND, still owing nearly 100 million VND, Trung Tin Construction Joint Stock Company paid 395 million VND, Hop Thanh Cooperative paid 50 million VND, An Loc Joint Stock Company paid 311 million VND....

However, the amount of tax arrears in the mineral resources sector is still large. Many businesses are still slow to pay taxes. Some businesses have closed down, their addresses cannot be found, or they have established new businesses under other people's names to avoid paying old debts. We went to Dong Tam Joint Stock Company at No. 14, Lane A2, Dinh Le Street (Vinh City), which currently owes 2,390,000,000 VND in resource tax. However, we did not find any company named Dong Tam Company, but instead found Phuong Nam Joint Stock Company. The company's director, Le Van Cuong (born in 1975), is not currently residing there.

Mr. Nguyen Van Thanh, Head of Tax Inspection Team No. 1, Vinh Tax Department, said: It is possible that Dong Tam Company has established a new enterprise, abolishing the old enterprise. Vinh Tax Department has come many times but never met the director of Dong Tam Company. Mr. Le Van Cuong's wife said: Mr. Le Van Cuong used to work as a stone quarry worker for Dong Tam Joint Stock Company for a while, then stopped working and is currently working as a freelance worker in Laos. According to her, Le Van Cuong has never been a director.

Faced with that situation, Vinh Tax Department has suspended the company's invoice and forwarded the document to the Department of Planning and Investment for coordination in handling. Not only Dong Tam Company, recently, Quy Hop Tax Department also has many enterprises that owe mineral resource tax such as: An Loc Joint Stock Company currently owes 535 million VND, Trung Tin Construction Joint Stock Company owes 407.7 million VND, Nghe An Non-ferrous Metal Production, Trading and Import-Export Joint Stock Company owes 488 million VND, Ngoan Cuong Private Enterprise owes 913 million VND....

Stone processing at Thung Khuoc Industrial Park - Qui Hop.

Nghe An Tax Department had to suspend the use of invoices for dozens of businesses, and at the same time coordinate with Nghe An Department of Natural Resources and Environment to collect tax debts of mineral mining businesses. Specifically, the Tax Department forced money from the bank accounts of 64 businesses, revoked the business registration certificate of 1 unit, forced invoices, forced 8 units to buy invoices at the tax office, and at the same time notified them of debts and invited them to work with dozens of tax-debt units. Not counting the case of revoking business licenses, among the above measures, it can be said that forcing invoices and stopping the operation of invoices is the most damaging. Businesses are not allowed to print new invoices, if they want to have invoices to operate, they must buy them from the tax office and the condition for buying is to pay tax debts. This is a tough measure to force businesses that are slow to pay their debt to fulfill their budget obligations.

By June 2015, there were still 32.7 billion VND in tax arrears from the resource exploitation industry that were subject to enforcement. According to Mr. Nguyen Dinh Hoa, Director of the Nghe An Tax Department, one of the solutions to boost tax arrears collection in this sector is for the industry to step up tax administrative reform, create favorable conditions for taxpayers, and at the same time strengthen inspection, examination, suspension of invoices for a number of businesses and use synchronous measures to recover arrears, focusing on advising the Provincial People's Committee to direct this sector more strongly.

Pearl