Vinh City: 1,567 businesses stop operating, owe 165 billion VND in taxes

Ha Dung Company Limited leases land in Nghi Trung commune, Nghi Loc district for a term of 40 years. Photo: Lam Tung

Ha Dung Company Limited located in Hamlet 22, Nghi Trung Commune, Nghi Loc District, registered for tax declaration at Vinh City Tax Department with the business lines of construction of small and medium-sized irrigation works; trading in computers and office equipment. This enterprise started operating on April 1, 1997, but after a while, it stopped its business activities and Vinh City Tax Department closed its tax code on May 3, 2018.

Previously, this Company was approved by the People's Committee of Nghe An province to lease land with an area of ​​33,939.3 m²in Nghi Trung commune, Nghi Loc district and Nghi Hai ward, Cua Lo town for a term of 40 years.

According to Vinh City Tax Department, as of August 31, 2018, the tax arrears of Ha Dung Company Limited had reached nearly 3.4 billion VND.

The land area in Nghi Hai ward (Cua Lo town) is being leased by the Company to another unit for business organization. Photo: Lam Tung

The tax authority has notified the Company many times to pay taxes but there have been no results. Another company is Thach Son Thao Joint Stock Company in Hung Loc small industrial cluster, Vinh city, which is in the business of buying, selling, producing and processing agricultural, forestry and aquatic products. To serve its business, the Company was leased land by the People's Committee of Nghe An province for a period of 40 years. However, the company has stopped operating and owes more than 600 million VND in taxes.

Thach Son Thao Joint Stock Company rents land at Hung Loc CNN cluster, Vinh city. Photo: Lam Tung

Ha Dung Company Limited and Thach Son Thao Joint Stock Company are two of many businesses that have stopped operating, have large tax debts, but still use land for rent to make a profit in Vinh city.

The announcement of suspension of operations and unreachable status makes it difficult for tax authorities to collect taxes.

Although it is in arrears of land rent and no longer operating, Thach Son Thao Joint Stock Company leases land to other businesses. Photo: Lam Tung

Mr. Ha Kim Cuong - Head of the debt management and tax debt enforcement team of Vinh City Tax Department said: As of September 30, 2018, 1,567 enterprises stopped operating with a total tax debt of 165 billion VND.

Discussing this situation, Mr. Vo Duy Duc - Deputy Head of Vinh City Tax Department said: The tax authority has sent documents to relevant agencies such as the Provincial Police, the Procuracy, and the Tax Department to support in contacting and controlling businesses that have stopped operating and owe taxes as well as land rent, however, it is very difficult to collect taxes from many businesses that have stopped operating./.