The Ho Chi Minh City Tax Department: Concentrating on debt collection at the end of the year

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The Ho Chi Minh City Tax Department inspected 1,159 dossiers, tax arrears and fines is 2.084 billion VND, reaching 103% of the plan in 2018. Photo: S.T

Enforce tax debt

The HCM City Taxation Department has recently requested the HCMC Department of Planning and Investment to enforce by revocation of certificates and operating licenses of Meinhardt Vietnam Construction Consulting Co., Ltd. This measure was proposed by the Tax Department of Ho Chi Minh City due to Meinhardt Vietnam Construction Consulting Co., Ltd owed taxes, fines, and had late payments of more than 22 billion VND.

Earlier, the HCMC Tax Department issued three documents suspending the use of invoices for Meinhardt Vietnam Construction Consulting Co., Ltd, but the company still fails to fulfill tax obligations to the State. Meinhardt Vietnam Construction Consultant Co., Ltd is a unit in a joint venture, and was selected as consultant to monitor the implementation of BT contract, the project against flooding of 10.000 billion VND of Ho Chi Minh City.

According to the HCM City Tax Department, by the end of October 2018, the total debt (90-day debt and over 90-day debt) is estimated at 9.5 trillion VND, increasing by 25.34% compared to December 31, 2017.

According to Mr. Nguyen Nam Binh, Deputy Director of Tax Department of Ho Chi Minh City, before the situation of tax debts of some enterprises, the Department of Taxation applied many enforcement measures, including measures to withdraw the certificate of business registration; announcing invoices are invalid...

At the same time, the information disclosure of tax debts on the mass media. Not only Meinhardt Vietnam Construction Consultancy Co., Ltd, the Ho Chi Minh City Tax Department also continues to ask for revocation of certificates and operating licenses for some companies that owe tax debts for many years.

According to the Ho Chi Minh City Tax Department, for debt over 90 days, tax debt enforcement measures will be applied in accordance with the Article 26, Law No. 21, amending and supplementing a number of Articles of Law No.78/2006/QH11. In the first 10 months of 2018, the HCMC Tax Department has issued 25,094 enforcement decisions with a tax debt of 10,329 billion VND.

Currently, for enterprises that have large debts, the Ho Chi Minh City Tax Department is managing most of the application of enforcement measures by announcing invoice is invalid. For debts of less than 90 days, the tax office only urge debt collection through the following measures: telephone calls; sending SMS; issuing tax notice and late payment, with more than 2.8 million cases; disclosing information on taxpayers who fail to pay taxes on time on the mass media, according to the regulations of the debt management process for 3,812 taxpayers, with a total tax amount of 4.583 billion VND.

Inspection in hot areas

Together with urging to recover the debt, the Ho Chi Minh City Tax Department has concentrated on inspecting many hot areas. According to the Ho Chi Minh City Tax Department, by the end of October 2018, the unit has conducted inspections and examination at 16,231 enterprises with tax arrears and fines of 4.186 billion VND, reducing deductible value added tax of 545 billion VND, avoiding losses of 11,523 billion VND.

According to the tax inspection, 129,519 tax declaration dossiers have been inspected at the Tax office, with a total additional tax declaration of 66.7 billion VND, reducing by 71% compared to the same period. Implementing 15,072 inspections at enterprises, collecting 2.102 billion VND of tax arrears and fines, increasing by 25% compared to the same period; reducing deductible value added tax of 277 billion VND; reducing loss of 6,589 billion VND.

For tax inspection, the Ho Chi Minh City Tax Department has inspected 1,159 records, tax arrears and fines is 2.084 billion VND, achieving 103% of the plan in 2018, increasing by 21% compared to the same period; reducing deductible VAT of 268 billion VND, and decreasing loss of 4,934 billion VND.

Although the results of tax inspection exceeded the plan in 2018, the Ho Chi Minh City Tax Department still set targets through the inspection in the last two months of 2018 that must reach more than 1.300 billion VND. In particular, strive to collect 570 billion VND through tax inspection and increase revenue collection of over 760 billion VND through inspection.

In order to achieve the above targets, the HCMC Tax Department will intensify the inspection and examination of businesses in tourism, trading in pharmaceuticals, cosmetics, foodstuffs, agro-forestry and fishery products, and trading in electricity, transfer of capital, preferential business, exemptions, wholesale gasoline, suspicious transactions, businesses have associated transactions, notary offices, multi-level sales, and cases with large land rent reductions.

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In particular, the tax administration of new trading activities, in addition to propaganda to organizations and individuals to make tax declaration and payment in accordance with regulations, the Department of Taxation has collected data of organizations and individuals whose transactions are arising in order to have legal measures to control the tax payment.