Many enterprises strong-armed into paying tax to State budget

Tax debt dossiers at HCM City Customs Department. Photo: T.H

The Investment Customs Branch, or HCM City Customs Department, has allowed two businesses, the Kim An Trading Production Co., Ltd. (Tan Binh district, Ho Chi Minh City, tax code: 0302492118) and Cu Chi Biochemical Fertilizer Joint Stock Company (Cu Chi district, Ho Chi Minh City, tax code: 0302271091), to trade again, after those businesses fully paid their outstanding tax amount to the State budget.

Previously, in May 2021, the Investment Customs Branch decided to stop the customs activity of the Kim An Trading Production Co., Ltd., as the enterprise owed a debt for more than 90 days, with an amount of over VND380 million.

Similarly, in July 2021, the Cu Chi Bio-Chemical Fertilizer Joint Stock Company also landed itself a coercive measure to stop carrying out imports and exports procedures. The business had owed tax debt more than 90 days, with a debt to the tune of over VND320 million.

Besides the above cases, according to the Investment Customs Branch, in August 2021, they had to issue three other bans due to similarly large tax debts.

Specifically, after the Investment Customs Branch issued a decision on tax enforcements, dated July 14, 2021, the Mega Chemical Co., Ltd. (tax code 0314578722, address: 68 Nguyen Hue, Ben Nghe ward, District 1, Ho Chi Minh City) has fully paid over VND 3.55 billion into the State budget, the Truong Khai Investment Development Company Limited (tax code 0313705294, address: 1st Floor, Packsirnex Building, 52 Dong Du, Ben Nghe Ward, District 1, Ho Chi Minh City) has fully paid over VND 300 million to the State budget. The Investment Customs Branch has issued decisions to reinstate import/export activity for these companies.

The Investment Customs Branch also issued a decision to terminate Decision No. 954/QD-DT, dated June 2, 2021, that previously banned Woogwang Vina Co., Ltd., (tax code 0302871807; address: Lot B25-B26, B3 Road, Industrial - Small Crafts Complex Industry, Xuan Thoi Son commune, Hoc Mon district, Ho Chi Minh City). This company has now fully paid VND 172 million in overdue tax debt to the State budget.

However, There are many cases of huge tax debt. The Industrial Construction Joint Stock Company (address: 146 Nguyen Cong Tru Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City, tax code: 0302620641), holds a tax debt of over VND 260 billion.

The Tay Nam SWP Petroleum Company Limited (address: No. 26, No. 6A Street, Trung Son Residential Area, Binh Hung Commune, Binh Chanh District, Ho Chi Minh City, Tax Code: 0315022575), has a tax debt of VND 18 billion.

Talking to us, Mr. Nguyen Xuan Binh, Director of the Investment Customs Branch, said that “the decisions on enforcing the suspension of customs procedures for exports and imports are only made effective for enterprises which are engaged in import and export activities. For the cases where they are not arising imports and exports, this coercive measure will have no effect on tax debt recovery.”