HCM City Customs handling tax debt

VCN - More than 6,000 cases of tax debt, with a total debt of over VND2,462 billion, have been publicly listed and handled by the HCM City Customs Department.
Check tax debt records of enterprises at Saigon port area 1 Customs Branch. Photo: T.H
Check tax debt records of enterprises at Saigon port area 1 Customs Branch. Photo: T.H

“Roll call” of enterprises owing large debts

Among enterprises owing tax debts announced by the Ho Chi Minh City Customs Department, most of them are those who have intentionally delayed paying tax debt for many years.

Although Ho Chi Minh City Customs Department has implemented debt recovery solutions, these have not succeeded. There are many enterprises owing large debts such as NIVL Joint Stock Company with more than VND152 billion; Silver Star Vietnam Co., Ltd with more than VND47 billion; Kwang Nam Footwear Manufacturing Co., Ltd. with more than VND35 billion; Hoang Phuoc Minh Import-Export Trading Service Company Limited, with more than VND41 billion; Thanh Nien Joint Stock Company with over VND33 billion.

Many businesses operating in the outsourcing field also incurred large debts more than a decade ago. For example, Hung Sang Plastic Garment Co., Ltd., owes more than VND30 billion; Hoang Giang Trading, Production and Service Private Enterprise owes nearly VND26 billion; A Chau Garment and Trading Co., Ltd., owes more than VND24.5 billion.

Besides that, many cases arise from post-clearance audit conducted by the Customs authority, but the enterprises intentionally delayed paying tax under the arrears decision of the customs authority. In particular, there is the case of Gia Phuc Garment Joint Stock Company, which owes more than VND47.5 billion; Huu Lien Asia Joint Stock Company, which owed more than VND 35 billion; Nam Viet Refining and Petrochemical Joint Stock Company, owes more than VND26 billion.

Most of the above cases have lasted more than 10 years. Thanh Nien Joint Stock Company owes more than VND33 billion of tax debt at Saigon Port Area 3 Customs Branch since 2008. Although the company is still operating, it has been nearly ten years since the day of arising tax debt, this company has not yet fulfilled its tax payment obligation to the State. In many times working with the Customs authority, the Director of the enterprise made a commitment to gradually pay the outstanding tax but he still did not follow the commitment.

There is also the case of owing debt of more than VND47 billion of Silver Star Vietnam Co., Ltd. arising from 2007. At the end of November 2007, this enterprise registered at the Investment/Processing Customs Branch to perform a processing contract of 1.4 million pairs of sports shoes and sandals of all kinds.

The contract period was for one year. During the contract period, Silver Star Vietnam Co., Ltd. made over 470 import-export declarations. By November 2008, at the end of the contract period, the Company did not liquidate the contract, which means that the number of imported raw materials and accessories had not been determined whether they had exported processed products or not and the amount of import tax for with the corresponding amount of outstanding raw materials.

This business is no longer operating at its registered address. Through verifying at the immigration management agency, the competent force discovered that the director of this company was a foreigner who had returned home.

Many strong measures

From the first months of 2022, HCM City Customs Department has directed units to review and implement effective measures to recover tax arrears, including applying coercive measures as prescribed.

On February 25, 2022, the Manager of Saigon port area 3 Customs Branch signed and issued Decision No. 06/QD-KVIII on the enforcement of tax debt for Thanh Nien Joint Stock Company (address: 28-30-32-34 Pasteur, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City).

According to this decision, the customs authority applied coercive measures by stopping implementing customs procedures for exported and imported goods (except for goods specified in Clause 2, Article 131 of the Law on Tax Administration dated June 13, 2019) to enforce Notice No. 56 /TB-KVIII dated February 23, 2022 on tax debt and late payment interest. According to Saigon port area 3 Customs Branch, the reason is that Thanh Nien Joint Stock Company did not comply with the tax payment according to notice No. 56/TB-KVIII dated February 23, 2022 on tax debt and late payment by the Saigon Port Area 3 Customs Branch, with the coercive amount of over VND33.268 billion.

The Manager of Tan Thuan Export Processing Zone Customs Branch (HCM City Customs Department) has just signed the announcement of the suspension of immigration for Mr. Le Anh Tu (born on July 17, 1965, who was a director and legal representative of T&C Trading and Production Company Limited; tax code: 0101019977; Business Registration Certificate number: 0102000311; business address: 73 Mai Hac De, Bui Thi Xuan Ward, Hai Ba Trung District, Hanoi City). The reason for the suspension was the enterprise's failure to comply with the tax arrears notice of the customs authority; the period of temporary suspension was from March 1, 2022 until taxpayers complete their tax payment obligation into the state budget.

Similarly, in the case of director of Binh An Trading Production Company Limited (tax code: 0302452316; business registration certificate number: 91/QD-PĐKKD; business address: 244 Nguyen Thi Dinh, ward Binh Trung Tay, District 2, Ho Chi Minh City - now in Thu Duc City, Ho Chi Minh City) was also temporarily suspended from leaving the country because of intentionally delaying to pay tax.

Accordingly, Le Dinh Binh, director and legal representative of Binh An Trading Production Co., Ltd., was notified by the Tan Thuan Export Processing Zone Customs Branch to suspend leaving the country from March 1, 2022.

According to Tan Thuan Export Processing Zone Customs Branch, as of June 30, 2020, T&C Trading and Production Co., Ltd owed over VND131 million (including fines for late payment); Binh An Trading Production Co., Ltd owes over VND271 million of monetary penalty for late payment.

According to the customs branches, during the collection process, there are cases where the business has stopped operating and abandoned its registered address, but the customs authority can find the address and phone number of the legal representative to invite them to the customs office, but the debt collection was also ineffective.

Regulatory enforcement measures are only effective for businesses that are still operating. As for the business that have moved, it is considered "hands-on" because it cannot be applied.

Not only being aggressive with cases of intentionally delaying payment of import and export tax, HCM City Customs Department also coordinated and supported Ho Chi Minh City Tax Department to handle many cases of intentionally delaying tax payments in accordance with the Law on Tax Administration.

At the Investment Customs Branch - Ho Chi Minh City Customs Department, the leaders of the customs branch signed and issued a decision to stop carrying out customs procedures for imported and exported goods in more than 30 cases. In particular, there are many cases of tax debt from several billions to tens of billions of VND. Notably, after implementing coercive decisions, some businesses have fulfilled the obligation to pay taxes to the State budget.

By Lê Thu/Thanh Thuy

Related News

Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

VCN - On March 27, 2024, at the headquarters of General Department of Vietnam Customs, the Ministry of Finance held a conference to announce the Decision to appoint Mr. Dinh Ngoc Thang, Director of HCM City Customs Department to the position of Deputy Director General of Vietnam Customs. Deputy Minister of Finance Nguyen Duc Chi chaired the conference.
Lang Son Customs faces difficulties in tax debt recovery

Lang Son Customs faces difficulties in tax debt recovery

VCN - Recently, Lang Son Customs Department has implemented many tax debt enforcement measures to reduce tax debt to the lowest level. However, the results have not met expectations. Customs branches at border gates in the province are currently facing difficulty in collecting tax debt.
HCM City: Export production and processing enterprises drop sharply

HCM City: Export production and processing enterprises drop sharply

VCN - The number of processing and export production enterprises completing procedures at the Processing Customs Branch - HCM City Customs Department in 2023 decreased by more than 31% compared to 2022. It is only about 1,200 enterprises.
HCM Customs strives to achieve high revenue target in 2024

HCM Customs strives to achieve high revenue target in 2024

VCN – The volume of imports and exports cleared across HCM City Port in the first month of the year has improved, helping state revenue increase. HCM City Customs Department expects to achieve high revenue in 2024.

Latest News

Can Tho City Customs Department’s revenue increases by 85%

Can Tho City Customs Department’s revenue increases by 85%

VCN – The revenue from items such as coal, machinery and equipment, electronic products and imported components increase, improving the revenue of Can Tho Customs Department.
Off – Airport Cargo Terminal facilitates import and export enterprises

Off – Airport Cargo Terminal facilitates import and export enterprises

VCN - The method of importing and exporting goods through Off – Airport Cargo Terminal will help businesses to save time and costs of transporting goods to the airport, reduce time of carrying out customs procedures, and increase the speed of international goods transportation…
Quang Tri Customs makes great effort to foster imports and exports across area

Quang Tri Customs makes great effort to foster imports and exports across area

VCN – Quang Tri Customs Department determines that accompanying businesses is a requirement and responsibility to support businesses in overcoming difficulties, contributing to the socio-economic development in the area.
Propose to extend customs clearance time across La Lay International Border Gate

Propose to extend customs clearance time across La Lay International Border Gate

VCN - The People's Committee of Quang Tri province has sent an official dispatch to the Government Committee of Salavan province (Laos) on changing working hours at the pair of international border gates of La Lay (Dakrong district) and La Lay (Salavan province).

More News

Imported goods increased, customs clearance was slow at Huu Nghi international border gate

Imported goods increased, customs clearance was slow at Huu Nghi international border gate

VCN - Information from border gates in Lang Son province, in recent days, the number of imported goods and vehicles entering Vietnam through Huu Nghi international border gate has increased, leading to slow customs clearance activities.
Pilot customs clearance for passengers using passports and entry and exit permits across Bac Luan II Bridge

Pilot customs clearance for passengers using passports and entry and exit permits across Bac Luan II Bridge

VCN – Mong Cai City People’s Committee has just piloted customs clearance for passengers using passports and entry and exit permits across Mong Cai International Border Gate in Bac Luan II Bridge on Saturday and Sunday.
Hai Phong and Quang Ninh Customs Departments promote cooperation

Hai Phong and Quang Ninh Customs Departments promote cooperation

VCN – The cooperation between Hai Phong and Quang Ninh Customs Departments has achieved many practical and effective results.
Bac Ninh Customs held a dialogue with over 200 import and export business

Bac Ninh Customs held a dialogue with over 200 import and export business

VCN - On March 21, Bac Ninh Customs Department held a dialogue of Customs-Business in 2024 with the participation of more than 500 representatives of over 200 enterprises operating imports and exports in Bac Ninh, Bac Giang and Thai Nguyen province.
Customs finalization report is the stage to decide whether business eligible for  tax exemption or not

Customs finalization report is the stage to decide whether business eligible for tax exemption or not

VCN - Customs finalization report is the final step to decide whether the business is eligible for tax exemption or not. To do this, the business is required to implement effective internal management methods, and has transparent accounting systems and management software...
250 import-export businesses dialogue with Hai Phong City People

250 import-export businesses dialogue with Hai Phong City People's Committee

VCN - On March 20, Hai Phong City People's Committee organized a dialogue conference with import-export businesses in 2024 with the theme "Cooperation - Development - Efficiency". Participating in the Conference were representatives of 250 typical import-export enterprises carrying out procedures through the area.
Vietnam Customs plays important role in ASEAN Customs community

Vietnam Customs plays important role in ASEAN Customs community

VCN – In addition to the integration trend, Vietnam Customs’ international cooperation and integration has been deeper and more substantive, contributing to promoting the customs reform and modernization. Vietnam Customs is always an active member in implementing regional customs cooperation initiatives and programs.
Quang Ninh Customs: Striving to promote imports and exports

Quang Ninh Customs: Striving to promote imports and exports

VCN - Quang Ninh Customs Department is deploying many solutions to attract and keep enterprises as well as promote imports and exports right from the beginning of 2024 including arranging customs officers to handle procedures outside working hours; and proactively meet and remove difficulties for enterprises.
Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Read More

Your care

Latest Most read
Can Tho City Customs Department’s revenue increases by 85%

Can Tho City Customs Department’s revenue increases by 85%

VCN - According to report of Can Tho Customs Department, as of March 15, the department processed 26,000 declarations of imports and exports, up about 12%. The import and export turnover rose 17% year-on-year to US$ 1.1 billion.
Off – Airport Cargo Terminal facilitates import and export enterprises

Off – Airport Cargo Terminal facilitates import and export enterprises

The method of importing and exporting goods through Off – Airport Cargo Terminal will help businesses to save time and costs of transporting goods to the airport and increase the speed of international goods transportation…
Quang Tri Customs makes great effort to foster imports and exports across area

Quang Tri Customs makes great effort to foster imports and exports across area

VCN - Statistics from the Quang Tri Customs Department show that import-export, immigration, and transit activities in the area in the first quarter of 2024 soar.
Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

Director of HCM City Customs Department Dinh Ngoc Thang is appointed Deputy Director General of Vietnam Customs

The Ministry of Finance held a conference to announce the Decision to appoint Mr. Dinh Ngoc Thang to the position of Deputy Director General of Vietnam Customs
Propose to extend customs clearance time across La Lay International Border Gate

Propose to extend customs clearance time across La Lay International Border Gate

VCN - Special cases will be processed procedures across the border gate pair anytime and anywhere. Currently, the working hours at the border gate pair is until 7:00 p.m.
Mobile Version