Great effort to prevent budget revenue loss

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Officers from Phu My Customs Branch under Ba Ria- Vung Tau Customs Department inspecting import and export goods.

Good control of tax debt

In a recent meeting with the BR-VT Customs Department about budget revenue collection, Deputy Director General of the General Department of Customs Nguyen Duong Thai appreciated revenue loss prevention of BR-VT Customs department; especially debt management with the ratio of recoverable debts always kept at the lowest level.

According to BR-VT Customs Department, from 2014 to 2018, the unit’s outstanding debt was 146.6 billion VND. As of November 15, the BR-VT Customs Department has collected 4.85 billion VND of tax debt, exceeding the target of 4.27 billion VND, of which revenue from bad debt was 4.85 billion VND. Estimated till December 31, the unit would collect 5.54 billion dong of tax debt. Currently, the tax debt of BR-VT Customs Department is only 0.53 percent over total budget revenue that is much lower than the average rate of tax debt of the whole sector Notably, after the revised law of Tax Management came into effect, tax debt at BR-VT Customs Department has been managed strictly and there has no longer been tax debtors evading or missing

On debt management, Nguyen Thanh Sang, Deputy Director of BR-VT Customs Department said all debts at BR-VT Customs Department have been followed and managed, debt collection measures have been developed according to the guidance of the General Department of Customs. BR-VT Customs Department has taken measures strictly according to the Law on Tax Administration. For large debts, BR-VT Customs Department has sent civil servants to work at the enterprise's headquarters (If the enterprise has not escaped or disappeared) and coordinated with local authorities such as police to require the enterprise to fulfill tax obligations.

Especially, for tax incurred from tax assessment through post-custom clearance audit and specialised inspection activities, BR-VT Customs Department fully collected the underpaid tax amount, exempted and reduced tax amount, refunded amount, late payment, and administrative fines. For cases showing signs of tax evasion, BR-VT Customs Department shall promptly collect documents and evidence to exchange with People's Procuracy solutions or transfer them to agencies for further investigation and handling

Positive results from post clearance audit

One of the outstanding results of revenue loss prevention of BR-VT Customs Department is post clearance audit. Despite limited human resources, in recent years, BR-VT Customs Department has effectively conducted post clearance audit, promptly detecting and collecting the tax for the State budget and contributing to raising the enterprise’s compliance with laws in the area.

According to statistics of BR-VT Customs Department, in recent years, the Department has achieved positive results with revenues up to tens of billion per year. Typically in 2016, revenue from post- customs clearance audit of the unit reached more than 127 billion VND, in 2017 more than 63 billion VND and in 2018 more than 24.5 billion VND. In 2019, revenue from post- customs clearance audit hit VND 18.75 billion, exceeding 28 percent of the plan in 2019.

Not only exceeding the targets on the quantity of inspections and revenue, the post- customs clearance audit of BR-VT Customs Department also positively affected enterprises' sense of law compliance. In fact, post clearance audits in recent years have changed markedly the awareness of law compliance of enterprises. Accordingly, violations which were punished through post-customs clearance audits haven’t been repeated. Currently, most enterprises have shown their compliance with the law; the violations were incurred mainly due to unclear understanding of the legal policy, or related to codes and implementation of regulations on management of raw materials for export processing and production.

To get the above results, according to Nguyen Thai Hoai Nam, Manager of the Post Clearance Audit Branch in the process of implementing post-customs clearance audits at enterprises, the leaders of the Department and the branch always directed their civil servants to improve legal compliance of enterprises for them to understand and cooperate with Customs.

“Besides, the collection is also carried out by various measures skills to help enterprises understand tax obligations as well as the consequences of delaying tax debt payment thereby persuading them to fulfill their obligations. Thanks to the above-mentioned measures, all taxes, fines and late payment amounts were fully paid into the budget, neither new debts nor long-lasting complaints were arisen" Nguyen Thai Hoai Nam said.