Thousands of enterprises no longer engage in import-export, many of them evade tax

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One of the reasons given by the Ministry of Finance is that the procedures on establishment, business, suspension, dissolution and bankruptcy have been simplified and shortened. Though this has encouraged and facilitated significantly enterprises in improving their competitiveness in the production and business activities, it has given some entities a chance of abusing.

According to statistics of the General Department of Customs on export-import enterprises in 2015 and 2016, there were 49 enterprises which have operated in import-export for less than one year from the date of establishment and noticed their suspension, dissolution and bankruptcy; 1,043 enterprises which have left their business addresses and no longer operated in the period of 6 months or more from the last import and export activities; 15,379 enterprises stopping their export-import activities for 6 months or more but have not informed the competent authorities about the suspension or dissolution, but the system still showed that the enterprises were "in operation".

In particular, the Customs authorities have discovered 24 enterprises in breach, issued decision on tax assessment and requested enterprises to submit additional tax dossier. However, to evade tax obligations, these enterprises have abandoned left the business addresses, announced the dissolution, bankruptcy or registered the suspension or discontinuance.

These enterprises were also listed clearly: Branch of Tri Phuc 2 Company Limited, Tien Phat Wood Processing and Trading Company Limited; Sao Viet Import –Export Trading Service Company Limited; Bao An Trading Company Limited. The Ministry of Finance requested the Ministry of Planning and Investment to continue to monitor 24 enterprises above.

Besides, 8 enterprises were in import-export tax debts of 12.566 billion VND, and have not confirmed their debts with the Customs authorities but registered for dissolution on the national data system. They were companies limited: Xuong Ngoc, Dan Thai, Thuc Pham, Thai Binh Duong, Van Tu, Tan Hai Minh Food and agro-forestry products, An An Gia and An Thinh An. The Ministry of Finance requested for examination, verification and clarification of procedures for dissolution for these 8 enterprises.

In the document submitted to the Ministry of Planning and Investment to reflect this situation, the Ministry of Finance has emphasized that the entities often used their names or hired other person on behalf of them to many enterprises to join the import-export activities. After the period of operation, if there was a risk of fraud detection, they might suspend their operation and transfer to other enterprises, or operated at the same time or rotated the export-import enterprises in order to avoid the inspection and control by the Customs authorities; or stopped operation, left business address to evade tax and legal liabilities.

Hai Phong Customs discovered 120 tons of exported aluminum evaded tax up to hundreds of millions of vnd VCN – In the afternoon of 8th March 2017, at Dinh Vu port - Hai Phong, the ...

Facing the above situation, to facilitate and strengthen the management of law compliance for enterprises, the Ministry of Finance requested the Ministry of Planning and Investment to study and perfect the procedures for establishment and management of enterprises with the purpose of removing the exploitation of enterprises.