Resolutely fight against tax loss in Vinh city

(Baonghean) - Vinh City is a locality with a large number of businesses ceasing operations. In 2016, the number of businesses ceasing operations increased quite high (59 businesses closing their tax codes, 446 businesses ceasing operations without closing their tax codes and 275 businesses temporarily ceasing operations). This is a challenge for tax collection in the locality.

Deploying debt collection solutions

According to the synthesis from the Vinh City Tax Department, in 2016, the total state budget revenue managed by the City Tax Department reached 2,360.7 billion VND, equal to 128% of the ordinance estimate, an increase of 62% over the same period. However, the debt as of January 31, 2017 in the city was 225 billion VND. Mr. Nguyen Viet Hung - Deputy Head of the City Tax Department said: Organizations and individuals are not operating effectively, the situation of stopping and abandoning business is still happening a lot... affecting the budget revenue in the area, causing the outstanding debt to increase.

Electric bicycle and motorbike business is a field that the Tax Department is intensifying inspection to avoid revenue loss. Photo: Thu Huyen

Faced with that situation, the City Tax Department issued decisions to enforce accounts, enforce by means of notifying invalid invoices such as: Withdrawing money from the accounts of 396 enterprises with the amount of 88,243 million VND; notifying invalid contracts: 6 enterprises, the amount of 800 million VND; coordinating with the Debt Management Department of Nghe An Tax Department to continue sending tax debt messages to 502 enterprises with tax debt of 79,928 million VND. Posting on mass media, the city's electronic information page, the block where the enterprise is headquartered and the business individuals residing, the tax debt of 221 enterprises with tax debt of 146,889 million VND.

In addition, the City Tax Department has done a good job of propagating and educating tax laws and policies, providing guidance and timely implementing policies to remove difficulties for businesses. Maintained coordination with tax teams in the Department to do a good job of classifying tax debts, developing debt collection plans, urging and applying tax enforcement measures; linking debt collection targets with quarterly emulation rankings. Thanks to that, the amount of tax debt has decreased significantly, but old debts have not been collected, new debts have arisen. Resolutely implemented debt management and tax debt enforcement and considered this an important task that is placed at the top, and throughout the direction work.

Recently, the Vinh City Tax Department has also vigorously implemented programs to prevent revenue loss for a number of karaoke, sauna, massage businesses; transportation businesses; hotels; motels; restaurants; car and motorbike businesses; gasoline businesses; and mineral exploitation activities. The Department has implemented minimum revenue determination for businesses.

Binh Minh Technology Investment and Development Joint Stock Company registered to operate at Lane 6/1 Nguyen Thi Minh Khai, Vinh City. Currently inactive, its tax code has been closed. Photo: Thu Huyen

In particular, in recent times, the Tax Department has implemented measures to combat tax losses in paying registration fees. Implementing Directive 05/2015/CT-UBND of the City People's Committee, the Department has coordinated and combined from the stage of declaring and paying vehicle registration fees to control and put them into management, to coordinating with ward and commune authorities to review households and individuals doing transportation business; at the same time, coordinating with ward and commune authorities to collect tax arrears.

In 2016, the total number of households registering for tax collection was 5,679, with revenue of 179 billion VND and tax of 3.42 billion VND/month; of which, the number of individuals doing transportation business was 208, with revenue of 5.8 billion VND and tax of 262 million VND/month, and collected 2.763 billion VND from 795 households to pay into the budget.

The Department also effectively manages and exploits private housing construction activities and business premises for rent; effectively manages petroleum in the area: Seriously implements the program to prevent revenue loss for petroleum business activities of the Tax Department, inspects and monitors meter readings and handles additional collection for enterprises that under-report compared to actual consumption.

Continue to fight against tax loss and evasion

However, Vinh city is a key area, some fields and production and business sectors still have tax losses, there is a large number of organizations and individuals with high tax risks, tax evasion, and invoice trading but have not been detected and handled promptly.

Regarding this issue, Mr. Nguyen Viet Hung - Deputy Head of Vinh City Tax Department said: To prevent budget revenue loss, in the coming time, we will continue to promote inspection work at taxpayers' headquarters, strive to complete the inspection plan for 726 enterprises; focus on reviewing and selecting high-risk enterprises, large enterprises that have not been inspected for 3 years, enterprises with suspicious transactions to include in the inspection plan in a timely manner; strengthen inspection of specialized topics for enterprises in industries and fields with high potential risks of tax evasion and tax fraud, prevent acts of using illegal invoices to evade taxes; link inspection work at enterprises with the implementation of projects to prevent revenue loss of the industry and the province.

Along with that, the Department resolutely and flexibly implements debt collection and tax debt enforcement measures, aiming to minimize the occurrence of new debts, striving to have the tax debt balance that can be collected at less than 5% of the total revenue by December 31. Timely adjust taxable revenue, including seasonal business groups such as food and beverage, breakfast, coffee, restaurants, draft beer, soft drinks, construction materials, electrical appliances, electronics, refrigeration, hairdressing services, beauty care, adjust taxes for gold and silver trading enterprises, revenue after each adjustment period must ensure an average increase of 16% compared to revenue and tax managed in the same period; conduct surveys on adjusted tax revenue for individual households in accordance with procedures.

Viet Phuong