Vinh city's bad debt is up to 177 billion VND

According to a report from Vinh City, the total tax debt in the city as of September 30, 2018 was VND 255,183 million; the increase compared to December 31, 2017 was VND 33,267 million (an increase of 15%).

Of which, recoverable debt is 77.9 billion VND, down 3% compared to December 31, 2017; bad debt is 177.2 billion VND, up 25% compared to December 31, 2017.

The reason for the increase in bad debt is that since the beginning of the year, the city has had 546 businesses that have stopped doing business and left their business addresses with uncollectible tax debts. In addition, the number of businesses that owe money for mineral exploitation rights has increased because the money for mineral exploitation rights in 2018 was higher than in 2017. Some businesses have encountered many difficulties and have not paid the money for mineral exploitation rights, the debt has increased by 11,417 million VND, an increase of 78% compared to December 31, 2017.

Late tax payment increased by VND 12,155 million (9 months/2018) compared to December 31, 2017, mainly due to bad debts.

Discussion on tax debt collection in Vinh city. Photo: Tran Chau

Currently, Vinh Tax Department is taking many comprehensive measures to collect tax arrears.

Issued 48,684 notices 07/QLN for businesses and business households owing tax, fines, and late payment fees; Issued enforcement decisions for businesses and business households owing tax, and enforcement deadlines; Withdrawn money from accounts of 3,092 businesses, collected VND 535,783 million in tax.

Notice of invalid contracts: 128 enterprises, tax amount: 15,551 million VND; Enforcement by asset seizure: 60 business households; Tax amount: 205 million VND; Revoking business registration certificates of 6 enterprises, amount: 2.11 billion VND.

Officers of Vinh Tax Department process tax records of enterprises. Photo: PV

The Branch also coordinated with the Tax Debt Management Department of Nghe An Tax Department to maintain sending tax debt messages to 4,530 businesses, and at the same time post them on the information system, newspapers, radio, city website and list businesses with large debts at wards, communes and tax office headquarters.