Lang Son Customs finds it difficult to collect and handle tax arrears

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Huu Nghi Customs officers inspect imported specialized automobiles. Photo: H.N

Low collection rate

From the beginning of 2024, Lang Son Customs Department closely instructed the border customs branches to manage and collect import and export tax arrears. In particular, the Department requires the branches to complete the collection of tax debt and other revenues; assign a specialized leader to monitor and advise on the work implementation and urge enterprises to pay debts; develop plans, review enterprises with import-export tax arrears, apply measures to urge and collect debts.

However, by December 16, Lang Son Customs Department has collected VND 4,617 billion of import and export tax arrears, reaching 14.57% of the target assigned by the General Department of Customs according to Decision No. 847/QD-TCHQ dated March 29, 2024 and collected VND 1,568 billion of bad debts.

Also, by the end of December 16, 2024, the total overdue tax debt for customs declarations processed by Lang Son Customs Department decreased VND 4.26 billion compared to December 31, 2023 to VND 180.7 billion.

Typically, at Huu Nghi Border Gate Customs Branch, as of December 16, the total overdue tax debt was VND103.74 billion, but the branch had only recovered more than VND5.3 billion.

According to the representative of the Huu Nghi Border Gate Customs Branch, the number of debts arising in 2024 of the branch is not significant, most of the outstanding debts mainly arose from many years ago.

Although the branch has drastically implemented measures to debt collection, the results in 2024 are still low due to many enterprises with tax arrears temporarily suspending business, ceasing operations, dissolving and no longer at the registered business address...

According to the statistics of the Import-Export Tax Department (Lang Son Customs Department), the outstanding import-export tax debts mainly arise at the Huu Nghi Border Gate Customs Branch (more than 300 tax arrears files) and the Dong Dang International Railway Station Customs Branch due to the taxes on raw materials for traditional medicine, motorbikes, motorbike components... many years ago.

Deputy Director of Lang Son Customs Department Nguyen Huu Vuong said that the collection of tax arrears through the management area encountered many difficulties because the time the enterprise owed taxes had been long, the information about the legal representative, directors of the enterprises, and capital contributors of the enterprises was unclear in terms of address, personal identity, etc., so the Customs agency could not send notification of tax obligations as well as apply coercive measures.

In addition, in the process of verifying the assets of enterprises with tax arrears, Lang Son Customs found that many enterprises had been dissolved, and most of their assets had changed owners, so it was impossible to implement the solution of seizing assets. As for enterprises with tax arrears whose asset values ​​could be verified, the capital contributions of related members could not be verified, so enforcement by asset distraint could not be implemented.

Notably, coordination between localities where enterprises registered their business, commercial banks, between other State authorities and the Customs agency was also limited; localities, banks and other agencies have not actively supported the request for management and recovery of import-export tax arrears.

For example, coordination with banks to verify the accounts of legal representatives of enterprises with tax arrears to freeze assets to implement tax enforcement activities is often difficult to implement due to confidentiality regulations from the bank, Deputy Director Nguyen Huu Vuong added.

In particular, through reviewing records and verification, Lang Son Customs said that most of the enterprises with outstanding debts have temporarily stopped operating, especially those with outstanding import-export tax debts on traditional medicine and motorbikes. A few enterprises that are still operating also have other large tax debts to the domestic tax authority; these enterprises also committed to repay the debt but in the form of monthly payment with very small amounts.

Persistent in applying collection measures

Faced with that situation, Lang Son Customs determined to continue to persevere in implementing tax debt collection measures. In particular, it requires branches and units to focus on reviewing all enterprises with overdue tax debts, assessing each debt, the actual situation of the indebted enterprises to develop a collection plan for each enterprise.

According to Deputy Director Nguyen Huu Vuong, the leaders of the Department have directed branches and units to verify personal information of owners, legal representatives, key capital contributors of indebted enterprises. Thereby, there is sufficient information to issue tax debt notices, debt enforcement documents, verify assets and especially coordinate with the police to temporarily suspend the tax payment for individuals as enterprise owners, legal representatives or key capital contributors who delay to fulfill their State budget obligations.

At the same time, continuing to closely coordinate with banks and other competent authorities to implement measures to enforce tax debt collection such as: withdrawing money from accounts, freezing accounts, stopping the use of invoices... of tax-indebted enterprises’ owners according to the provisions of the Law on Tax Administration; publicly posting tax debt information of tax-indebted businesses.

In addition to the strong measures to collect overdue tax arrears that have been and are being implemented, Lang Son Customs is currently continuing to send civil servants to localities where indebted enterprises have registered business offices to coordinate with local authorities and police to verify and track down the legal representatives of indebted enterprises, thereby proposing appropriate debt enforcement measures.