Huu Nghi Customs implements solutions to collect tax debt

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Officers of Huu Nghi International Border Gate Customs Branch review dossier of enterprises. Photo: H.N

Drastically implementing solutions

As an international border gate with a huge volume of exit-entry passengers, import and export goods, and high import and export turnover, the tax debts and debts of late payment interest under the management of the branch have increased over the past year.

To collect outstanding debts, the Branch has strengthened debt collection, sent notifications on late payments and made phone calls to taxpayers, coordinated with local government agencies to identify the status of enterprises, and worked with the bank and Treasury to handle the deposit account; applied the administrative coercive measures on tax. The branch has also effectively implemented measures to suspend exit for legal representatives of tax debtors.

Manager of Huu Nghi International Border Gate Hua Thi Hong said that products imported across the border were mainly high tax rate items such as machinery, equipment, auto components and spare parts, CBU cars, chemicals, etc. Due to high tax rates for goods, the number of tax debtors before 2012 under the tax grace policy is quite large. Determining this is a key task, the branch has developed a plan and implemented drastic measures to collect tax debt.

The branch has directed technical teams to inspect and urge tax debt collection and prevent bad debts. Before Resolution 94/2019/QH14 is invalid, the branch focused on collecting outstanding tax debt and achieved positive results. The Branch has reported Lang Son Customs Department about enterprises delaying tax payments to coordinate with relevant agencies to collect the highest debt amount.

According to the branch, before 2021, there was VND106.99 billion from 418 enterprises, including 117 enterprises owing late payment interest. Currently, the branch has collected over VND851 million from 85 tax debtors. Notably, some enterprises have owed tax debts from 1997, 2000, and 2001.

Through the review and verification to recover tax debt and late payment interests of enterprises subject to tax debt frozen and cancellation under Resolution 94/2019/QH14, the branch has identified information on tax debtors and late payment debtors to effectively collect tax debts. Currently, 100% of debts at Huu Nghi Customs Branch have been determined to be recoverable debts. However, the tax debts of the remaining enterprises are bad debts.

For example, the case of Do Thanh Motorcycle Joint Stock Company (now as Duc Viet Motorcycle Joint Stock Company in Binh Chanh District, HCM City). Although the branch sent a notification as well as invited the company’s representative for tax debt collection, the company has given many reasons to delay in paying debts.

Ms. Hua Thi Hong said that although the branch has collected 155/418, accounting for 37% of the total number of businesses that owe tax before 2021, this work still faces difficulties because the coordination between sectors and local authorities has not been effective. Some enterprises have delayed tax payments.

Coordinating localities and police authorities to urge enterprises to pay tax

Responding to this situation, Huu Nghi Customs has reviewed dossiers of taxpayers to urge tax debt collection. The branch has directly worked with import and export enterprises, and major businesses to remove difficulties for them. In addition, the branch has classified tax debt groups and then cooperated with local police offices, authorities, procuracies, and courts to take coercive measures in accordance with the Law on Tax Administration.

The branch has coordinated with banks to grasp information of enterprises to recover tax debt; verified the deposit accounts at banks of enterprises that still owe tax to make decisions on coercive deduction of deposits; worked with the tax authorities to collect tax debts; urged tax debt collection before the payment deadline, and instruct enterprises to pay taxes in a timely fashion to enjoy incentive policies when importing the next consignment. Currently, the branch has completed the record for a tax refund for a company subject to debt cancellation under the Tax Administration Law.

The leader of Huu Nghi Customs said that, as per the new Tax Administration Law, businesses are no longer entitled to a grace period for import tax, which will limit the tax debt of enterprises when importing goods. However, in addition to strong measures to collect the remaining debts, the branch has assigned officers to work with local government agencies and policies to request enterprises sign a commitment on the deadline for paying tax debt.

From the beginning of 2023the branch has reviewed tax debtors and assessed tax debts to make plans for collection. In addition, the branch has issued a notification on tax debt collection, identified and informed the Police to suspend import and export for business owners who owe overdue taxes.

Ms. Hua Thi Hong expected that with the proposed solution and determination, the taxed debt collection of Huu Nghi Customs would be more effective in the last months of the year.