The "secret" to control tax debts of Dong Nai Customs Department

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Dong Nai Customs officers inspect export goods. Photo: N.Hien.

Fulfilling the revenue target before the deadline

In 2018, the Dong Nai Customs Department was assigned a revenue target of VND 16,500 billion VND, and a desired target of 18,200 VND. With the assigned tasks, the units have drastically implemented the financial solutions to increase the state budget revenue. Right from the beginning of 2018, the unit has actively evaluated the state budget collection, focused on reviewing and actively implementing measures to urge recovery of tax debts, paid special attention to studying measures and urging the attached subordinate units to perform the task of state budget collection at the highest level. By the end of November 2018, the unit has collected VND 16,926 billion, equivalent to 102% of the ordinance target. It is expected that by the end of 31 December 2018, the unit will complete the desired target of VND 18,200 billion.

In order to achieve the above results, the unit has regularly checked and carried out weekly reports on the inspections, ruling, taxation according to the request of the General Department of Customs. Particularly, the ruling on value of goods with high tax rates and large turnover in order to promptly detect and rectify errors in the determination of dutiable value at its subordinate branches such as; updating insufficient information for dutiable valuation, accepting the declared price lower than the price database, missing cases in which goods are declared at a low price and not applied for ruling. At the same time, the unit often guides the handling of problems in determining value in the subordinate units.

Along with that, Dong Nai Customs Department also accelerated the modernization of state budget collection and remittance, and modernized the state budget collection and remittance 24/7 among agencies such as tax, treasury and bank to best facilitate taxpayers.

Particularly, it would be an omission not to mention accompanying and supporting enterprises of Dong Nai Customs Department, which is considered as a "golden key" bringing many benefits such as increasing revenues in a sustainable way and reducing the tax debt of enterprises. Specifically, the unit always takes the initiative in talking and grasping difficulties and problems of enterprises and quickly supports and proposes competent authorities to solve problems for enterprises. Specifically, from the beginning of this year to now, the unit has reported and proposed solutions to remove many problems for enterprises such as application of environmental protection tax rate; classification of goods and tax levy on four-wheeled vehicles with battery-driven electric motors carrying 10 or more passengers operating within limited range; VAT levy on imported goods produced and traded for re-export; problems related to tax exemption and refund for goods sent to foreign countries for processing, then re-imported for export production; tax refund for export processing enterprises implementing import and export and problems related to tax collection for on-spot import and export Customs regime.

Tax debt "upstream"

Special bright spot in Dong Nai Customs Department is the control of tax debts that always achieved high results over the years. As of 30 November 2018, total overdue tax debts of the unit was only VND13.23 billion, down VND2.29 billion compared to the same period in 2017. Of which, most of the debts belong to enterprises which were missing and escaped from previous years. Thus, the tax debt rate at the Dong Nai Customs Department as of 30 November 2018 was only 0.078% - a desirable rate of many other units. Particularly, the most impressive is that this rate has been maintained by the Dong Nai Customs Department for many years - always below 1%.

According to the Dong Nai Customs Department, the "secret" to achieve such admirable results is that the unit regularly review, update and accurately determine arising debts. In particular, focusing on verifying and clarifying the current tax debt situation and irrecoverable debts; taking solutions to recover all recoverable debts; striving to complete the debt collection target, and determining not to raise new bad debts. Accordingly, all new debts are fully collected.

Revenues of Dong Nai Customs increased by 6.3% VCN- According to the report from Dong Nai Customs Department, until 25th October 2017, the revenues from import ...

At the Branches, tax debt is monitored closely every day. Subsequently, the Branch will make a monthly report to the tax office on the tax debt settlement in a month, together with the plan for the next month, which details each specific task for each tax debtor. Basing on the reports of the Branches, the tax office shall sum up the results and propose solutions to remove problems in the recovery of tax debts. Accordingly, for problems related to agencies such as the Department of Judgment Enforcement, the People's Courts at all levels, the Department of Planning and Investment, the Taxation Department, the Management Board of Industrial Zones ... arising in the process of tax debt recovery, Branches report to the Tax office and then the Tax office shall sum up and submit to the leaders of the Department written registration for meeting with relevant agencies. In addition, the Branches regularly review and collect information and operation of enterprises so as to introduce solutions in a timely fashion and to prevent the rising of bad debts.