Reduce tax arrears: Apply "hard" measures, and support enterprises

Timely remove, solve difficulties and problems for enterprises is one of the measures to limit tax debt. Photo by H. Van.

The total debt arrears as of 31st July 2017 is 74,937 billion VND, compared with 31st September 2016 increased 1.1%, compared with 30th June 2017 decreased 0.6%. Of which, the tax debt is capable of collecting 90 days and over 90 days is 47,127 billion VND, accounting for 62.9% of the total tax debt; compared with 31st September 2016 decreased 3.2%; compared to 30th June 2017 decreased 1.5%. The ratio of total debt to total domestic revenue is estimated at 5.1%.

More specifically, tax debts, fees, and land-related items were 28,506 billion VND; down by 31st December 2016 decreased 7.1%; compared with 30th June 2017 decreased 2.6%, of which tax debts and fees are 19,220 billion VND; the related land liabilities were 9,287 billion VND. Fines and late payment are 18,621 billion VND, accounting for 24.8% of total tax debt.

Particularly, taxpayers' tax debts which have died, lost, lost their civil act capacity, related to criminal liability, dissolved themselves, went bankrupt, stopped, took leave and left their business addresses ( irrecoverable) is 27,810 billion VND, accounting for 37.1% of total tax debt. This figure compared to 31st December 2016 increased by 9.3%; compared to 30th June 2017 increased 1%. As of July 31st, 2017, the number of potential tax receivables was reduced from 3.2% in 2016, the ratio of total non-performing loans to total domestic revenue was estimated at 5,1%, compared with total state budget revenue is equal to 3.9%. Up to 61.9% of current tax debt is irrecoverable and fines, late payments.

The tax debt has fallen sharply in comparison with 2016, however, the tax rate is still low. Tax authorities explained that due to the businesses with financial difficulties have overcome difficulties and operated back but have not got cash flow to pay enough tax debt, only pay the old debt, owing the new obligations arisen. The tax debtors are able to pay, the ones who easily recover the debt is processed by the tax authorities in 2016, the remaining debt enterprises are the difficult ones, even many enterprises have no assets to pay tax, even though the tax authorities have applied to the coercive invoices but they still can not pay.

In the coming time, the tax branch will continue to drastically and synchronously implement a number of solutions to recover tax arrears in the state budget and prevent and limit tax arrears. Specifically: Tax agencies shall advise the Party Committees and local administrations in directing agencies and branches in their respective localities to promptly remove and settle difficulties and problems in their production and business activities, handling in accordance with the laws and regulations on documents of tax extension, debt forgiveness, tax payment, exemption on late payment when businesses face objective difficulties, natural calamities, fires, etc., to support medium enterprises maintaining stable production and business development, creating revenue for the budget, thereby gradually reducing the amount of tax arrears.

The entire tax system regularly reviews and classifies debts to reflect the nature of the tax debt, analyzing the causes of each case of tax debts to take measures to urge debt recovery; to closely monitor and supervise the tax debts, issue full notice of tax debts and late payment to each taxpayer; to assign debt recovery targets to each unit and each manager to urge the collection of monthly and quarterly tax amounts and each group of debts and concurrently debt collection results into the responsibility of the head of the tax agency.

On a monthly basis, the General Department of Taxation shall notify the list of debt enterprises to take measures to urge and coerce and request the tax offices to organize the application of measures to urge and coerce the tax debts through clearing accounts, notifying the invoice used, revoking the business registration.

The disclosure of information on taxpayers and the ones who are late payment taxpayers or failure to timely pay taxes on newspapers, radio, websites of tax offices, loudspeakers of communes and wards will also continue. Be actively implemented in addition to speeding up administrative procedures, applying information technology in all stages of debt management and tax debt enforcement.

At the same time, to intensify the inspection and examination of tax evasion transfer activities, to prevent the abuse of transfer prices in order to evade taxes; to actively propagate regulations on coordinating responsibilities of credit institutions in tax debt enforcement by deducting money from their accounts to credit institutions and promptly commending and rewarding the organizations and individuals well coordinate with the tax authorities in recovering tax debt effectively.