Hanoi considers withdrawing project of stalling off tax debt

Hanoi Tax Department continues to implement measures to urge and coerce tax debts in accordance with the tax administration process. Photo: T.L

By implementing the direction of leader of the People’s Committee of Hanoi City, Hanoi Tax Department has reviewed and summarized 39 companies which have owed large amounts of tax debts for a long time. Accordingly, as of 20/3/2018, the amount of debt from land use levies of 23 projects is 3,876 billion VND; 7 projects owed debts of land rents in 6 districts and towns with the amount of 160 billion VND; 9 companies owed taxes and fees with a total amount of 92 billion VND.

According to the tax authorities, besides some difficulties encountered during the implementation of the project, most of those businesses have cash flow, which generates revenue, but they do not pay taxes on time according to the regulations. According to the assessment of the Steering Committee for collecting tax arrears, apart from some difficulties and obstacles, there should be direction from the People's Committee of Hanoi City; for the consideration and resolution of departments that compliance with tax law for enterprises is subject to lawful penalties, if they are unable to pay tax on time into the state budget in accordance with regulations.

For these cases, tax authorities have requested taxpayers to arrange their cash flow soon in order to pay tax debts into the state budget in accordance with regulations before the tax authorities adopts stronger measures under Tax management Law.

The People's Committee of Hanoi city also requested the departments, authorities of districts and towns, to take measures for removing difficulties and obstacles for businesses. In that, to capture the situation of production for businesses having tax debt; collect feedback and information of taxpayers in order to accurately determine the causes of tax arrears, thereby proposing an appropriate measure for urging coercive tax debt repayment for each specific case, as well as ensuring the compliance of law.

Besides solutions for support, remove difficulties for businesses. People's Committee of Hanoi City will also strengthen the urgency, and have strong measures to deal with companies that are stalling off tax obligations.

In addition, the Hanoi Tax Department continues to implement measures to urge and coerce tax debts in accordance with the tax administration process; Classify the recoverable debts and bad debts in order to summarize and reports to Hanoi City for suggesting drastic and stronger solutions. At the same time, they recommended that enterprises and investors who have already committed tax avoidance to comply with the schedule and the law.

People's Committee of Hanoi also requested the authorities of districts and towns, to actively urge the enterprises to comply with the progress of tax payment as they are committed to do. Hanoi City also assigned the Department of Natural Resources and Environment to chair with relevant units to review and check some delayed projects. Such as if, the investor has insufficient financial capability; failing to pay land use levies or land rents under commitments. The advice from the People's Committee is to withdraw the project in accordance with the law.

Hanoi Taxation Department also revealed that after receiving the request by the tax authorities, enterprises have committed to pay their debts into the state budget.