Strengthening solutions for tax debt collection
(Baonghean.vn) - Faced with the increasing tax debt situation in the area, the Nghe An Tax Department is actively implementing solutions to guide and support businesses and people in implementing policies to exempt and reduce taxes and fees, while at the same time, strengthening the application of urging measures to collect tax arrears.
Tax debt tends to increase
First 10 months of 2023,Nghe An State budget revenueEstimated implementation is 13,034 billion VND, reaching 82.2% of the estimate, equal to 70.9% compared to the same period in 2022. Local budget expenditure in 10 months is estimated at 24,328 billion VND, reaching 73.4% of the estimate.
Meanwhile, tax arrears are on the rise. Preliminary statistics show that tax arrears in the province have exceeded 1,000 billion VND.
According to the public list of tax debts of units under the Provincial Tax Department, as of September 30, 2023, in Nghe An, there were 407 enterprises with a debt of 775 billion VND, of which 46 enterprises managed by the Provincial Tax Department owed 242.5 billion VND, 196 taxpayers managed by the Vinh City Tax Department had a tax debt of 442.09 billion VND, and the Bac Vinh Tax Department managed 65 enterprises with a debt of 90 billion VND...
Some businesses and debts that have been owed for many years and are currently in need of urgent resolution by the Tax sector. Typical examples are the tax and budget debt of 332.086 billion VND of Minh Khang Trading Joint Stock Company; BMC Trading Materials and Construction One Member Co., Ltd., which owes 60 billion VND in taxes; Construction Joint Stock Company 16 - Vinaconex on An Duong Vuong Street, Truong Thi Ward, Vinh City, which owes 25 billion VND; Investment and Construction Joint Stock Company 24 on Xieng Khoang Street, Nghi Phu Commune (Vinh City), at 55 Truong Chinh Street, Vinh City, which owes 24.67 billion VND; Joint Stock Company 482, which owes 24.42 billion VND; Central Consulting and Construction Joint Stock Company, at 104 Hai Thuong Lan Ong Street, Vinh City, which owes 13.65 billion VND in taxes.
In particular, due to objective reasons, some enterprises that used to be mainstays and contributed a lot to the provincial budget are now facing difficulties in production and business, leading to high tax arrears.
Therefore, Nghe An determined that from now until the end of the year, along with strengthening the review of budget revenue and ensuring strict and effective budget expenditure management, it is necessary to continue tightening financial discipline and order, managing budget revenue and expenditure; strengthening solutions to prevent revenue loss; and improving the efficiency of using the State budget.
Strengthening solutions
Compared to previous years, this year, due to the impact of the economic recession, the real estate market cooled down, and the sources of revenue that created a breakthrough no longer existed. On the other hand, due to war and conflict,supply chain disruptioncausing the world economy to be in trouble, construction materials manufacturing enterprises,textile shortage of ordersTherefore, revenue has decreased, leading to a decrease in budget obligations. Last year's tourism revenue brought hundreds of billions of VND to the province, but this year, the coastal town of Cua Lo is investing in reconstruction, many tourist areas in the area are operating at a low level, with few visitors and a sharp decrease in revenue.
The high rate of tax arrears this year reflects the difficulties of the economy and businesses, and this is also the common situation of localities across the country. The problem is that among businesses with tax arrears, the Tax sector must evaluate and classify them to have appropriate solutions to apply according to the Law on Tax Administration.
Mr. Le Quoc Dung - Deputy Director of the Provincial Tax Department shared: Due to the general difficulties of the economy, the Tax sector must flexibly apply measures according to the Law on Tax Administration to help businesses overcome difficulties, restore production to be able to collect tax debts. If businesses have real difficulties and have effective restructuring plans, the sector will propose to competent authorities a plan to handle tax debt settlement or apply the Resolution of the National Assembly Standing Committee and instructions of the Government and the Ministry of Finance to clear debts... Cases where measures are applied to publicly announce debt lists or measures to ban individuals from leaving the country to manage tax-debt-ridden businesses are mandatory solutions, because other measures have been applied before but were ineffective.
Faced with the increasing tax arrears, implementing the direction of the General Department of Taxation, Nghe An Tax Department will review the list of tax arrears cases, organize verification of each case to have specific solutions. If tax arrears persist, measures will be taken according to the Law on Tax Administration such as freezing bank accounts, prohibiting the issuance of invoices, and applying tax enforcement. Based on the verification of citizen identification data, the business registration certificate will be revoked for cases of establishing other enterprises to evade taxes or if there are sufficient signs of tax evasion, the investigation agency will be transferred to consider prosecution and investigation...
