Ensuring implementation of Resolution on tax debt settlement in accordance with progress

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The tax sector continues to review and classify debts, analyze reasons for tax debts. Photo: Thuy Linh

Review and analyze tax debtors

Mr. Doan Xuan Tuan, Deputy Director of Debt Management Department under the General Department of Taxation said that tax debt collection in 2020 was later than 2019 due to the Covid-19 pandemic and social distancing orders, so many taxpayers faced difficulties in business and production as well as stopped operation, therefore, tax payment to the State budget was delayed.According to the latest report from the General Department of Taxation, in the first five months of 2020, tax agencies at all levels collected VND12,378 billion or 25.9% of recoverable tax debts as of December 31, 2019, a year-on-year increase of 5.8%. Of which, revenue from debt management measure was VND8,262 billion, revenue from debt coercive measure was VND4,116 billion.

Another reason was the issuance of the Government’s Decree No. 41/2020/ND-CP on extension of deadlines for payment and tax and land rent for organizations and individuals affected by Covid-19. In addition, some taxpayers have been affected by Covid-19 so they have not collaborated with tax agencies in tax debt payment in the first months of the year.

According to Toan, the tax sector has further reviewed, classified debts and analyzed reasons for tax debts as well as made list of tax debt recovery for each specific tax debtor.

“Recently, the General Department of Taxation has directed the entire tax sector to focus on analyzing tax debtors affected by the pandemic. Thereby, tax agencies will support and remove difficulties for taxpayers as well as offer extension of tax payment deadlines for them to surmount the difficulties and restore their operation,” said Toan.

Notably, he also said that for tax debtors who are not affected by Covid-19 but still delayed tax payment, the tax agencies shall conduct coercive measure and publicize their information to collect tax debts to ensure fairness and transparency in observation with tax obligations.

The General Department of Taxation requests tax departments to review taxpayers who are not subject to extension of deadlines for payment of tax and land rent under Decree No. 41/2020/ND-CP to urge taxpayers to pay full tax payable to the State budget. At the same time, to review taxpayers subject to extension of deadlines for payment of tax and land rent but still owing tax to urge and collect tax debts to the State budget in a timely fashion.

Together with reviewing tax debtors, the representative of the General Department of Taxation also said that tax departments have been requested to direct the tax debt settlement and timely support taxpayers, arrange qualified officers to work in the debt management unit to handle and collect debts upon the end of the extended deadline.

“In the remaining months, the tax sector will focus on collecting debts which are beyond the extended deadline under Government’s Decree No. 41 and strive to fulfill the tax debt collection task at the highest level,” said Toan.

Ensure tax debt settlement

Regarding Resolution 94 on tax debt settlement, Toan said that to implement this Resolution, the Ministry of Finance issued Directive No. 03 as well as sent official letters to Secretaries of provincial Party committees, People’s Committees of provinces and cities to work together with tax agencies at all level to carry out this Resolution.

The Ministry of Finance also set up a steering committee to handle tax debts; the General Department of Taxation also has a detailed plan to implement this Resolution. Tax departments also set up their steering committees as well as build detailed plans under the guidance of the General Department of Taxation to handle outstanding tax debts.

“Because this Resolution only handles tax debts before July 1, 2020 – problems and inadequacies in tax management in the past, we directed tax agencies at all level to review all tax debt documents. Currently, the review has been finished. Accordingly, the Ministry of Finance will promulgate a circular stipulating procedures for tax debt handling for taxpayers under Resolution No. 94,” said Toan.

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Toan said the Circular includessix chapters, 25 articles and 24 appendixes of forms. So far, this circular has been completed and will be effective on July 1, 2020