Customs urgently reviews tax arrears

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Officials of Huu Nghi Border Gate Customs Branch regularly review the list and urge tax debtors to fulfil their obligations to the state budget. Photo: H.Nu

The General Department of Customs said that on November 26, 2019, the XIV National Assembly, the 8th session, adopted Resolution No. 94/2019/QH14 on freezing of tax arrears and write-off of late-payment fines and interests for taxpayers that are no longer able to pay these amounts to the state budget. The Resolution takes effect from July 1, 2020, and will be effective within three years.

On July 15, 2020, the Ministry of Finance issued Circular 69/2020/TT-BTC stipulating dossiers, order and procedures for debt settlement according to Resolution No. 94/2019/QH14 of the National Assembly. Accordingly, Point e, Clause 3, Article 23 of Circular 69/2020/TT-BTC stipulates: “Three-year report on tax debt charge-off, late payment fine and interest write-off shall be sent before July 30, 2023".

In order to prepare a summary of Resolution No. 94/2019/QH14 to report to the Ministry of Finance for submission to the Government and to the National Assembly on the debt settlement of the Customs sector, the General Department of Customs has requested local Customs Departments to urgently review the tax arrears at their units.

Specifically, the General Department of Customs has requested local customs departments to assess the implementation of freezing of tax arrears and write-off of late-payment fines and interests as prescribed in Resolution No. 94/2019 /QH14 and Circular 69/2019/TT-BTC since the Resolution took effect until now. In which, it is necessary to report on the dissemination clearly, completion of procedures, consolidation of the personnel apparatus, coordination between relevant agencies in the implementation of regulations on freezing of tax arrears and write-off of late payment fines.

At the same time, assess the difficulties and problems arising in the implementation process and the remedial measures the unit has taken in order to promptly solve problems and enhance the efficiency of settlement for outstanding debts that are no longer able to pay the state budget and are subject to debt settlement according to the provisions of Resolution No. 94/2019/QH14.

For debts that have been frozen, written off for late payment interest and fines according to Resolution No. 94/2019/QH14 for the 2020-2022 period, the General Department of Customs has asked local Customs Departments to review to ensure the right subjects, authority, amount, order and procedures as prescribed in Resolution No. 94/2019/QH14, Circular No. 69/2020/TT-BTC and recommendations of the State Audit. If they are not eligible, the dossiers of order and procedures do not meet the regulations, the debt freezing, cancellation of late payment interest and fines shall be rejected according to regulations; examine, review and take responsibility for data reported on cases of debt freezing, debt cancellation of late payment interest and fines in the 2020-2022 period. In case there is an adjustment in the data, it shall be updated and clearly state the reasons and explanations attached.

For debts subject to settlement according to Resolution No. 94/2019/QH14 from January 1, 2023 to June 30, 2023, the General Department of Customs has required local customs units to urgently complete the dossier, order and procedures and issue a debt freeze decision or submit to a competent authority for promulgation a decision on debt cancellation of late payment interest and fine before June 30, 2023 according to the guidance in Circular 69/2020/TT- BTC and Official Letter No. 796/TCHQ-TXNK dated February 24, 2023 of the General Department of Customs; additional report on debt freezing, debt cancellation of late payment interest and fines by each subject from January 1, 2023 to June 30, 2023.

In some cases, the taxpayer's operation status has not been unified with the tax office and the business registration authority (the tax authority noted that the taxpayer has ceased to operate at the registered business address but on the national business registration database of the business registration agency, the taxpayer is still active or vice versa), the General Department of Customs has required the units to have a written exchange, confirmation, update the taxpayer's operation status with the tax office and business registration agency to have a basis for debt settlement according to Resolution No. 94/2019/QH14.

In addition, the General Department of Customs suggested that the local customs departments should strengthen the inspection, examination and coordination with the competent authorities to proactively detect the cases in which taxpayers are eligible for debt freezing and writing-off return to production and business activities or establishes a new production and business establishment, the debt freezing or cancellation of late payment interest and fine shall be cancelled as prescribed; and measure to urge tax debt collection will be taken.