Why have nine processing enterprises enforced suspending use of invoices?

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Officers of Processing Customs Branch. Photo: T.H

The Processing Customs Branch said that the branch issued an official dispatch to request customs branches under HCM City Customs Department to enforce nine enterprises to suspend use of invoices

Han Viet Co., Ltd (address 36/9A Quang Trung Street, Ward 10, Go Vap District, HCM City) owes nearly VND2.2 billion; Khanh Quoc Private Enterprise (address: 63/72 Nguyen Van Luong, Ward 11, Go Vap District, HCM City) owes nearly VND1.9 billion; Phuong Hoang Trading and Production Company Limited (50/5E Quang Trung, Ward 12, Go Vap District, HCM City) owes about VND 1.8 billion; E.M.S.I Manufacturing and Trading Co., Ltd (address 572/2B Phan HuyIch Street, Ward 12, Go Vap District, HCM City) owes about VND1.6 billion;

GiaPhuc Garment Joint Stock Company (No. 4 Ben Nghe Street, Tan Thuan Dong Ward, District 7, HCM City) owes over VND608 million; M.M.C Advertising Information Co., Ltd (address 112/5/5D Nguyen Thai Son, Ward 3, Go Vap District, HCM City) owes over VND144 million;

DNTN M.K.K (address 506/21, 26/3 Street, Ward 16, Go Vap District, HCM City), owes about VND200 million; KITO Production-Trading Service Co., Ltd (No. 27 Tan My, Tan Phu Ward, District 7, HCM City), owes VND2.3 million; ThienQuy Private Enterprise (129/7 Le Van Tho Street, Ward 1, Go Vap District, HCM City) owes more than VND3 million.

According to the branch, the tax debts of nine enterprises are irrecoverable. The branch has applied enforcement measures but still needs to collect these debts.

The branch cites the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019; Clause 1 and Clause 5, Article 34 in Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government.

Clause 1 says that this enforcement measure will be implemented when the enforcement measures specified in Points a, b and c Clause 1 Article 125 of the Law on Tax Administration cannot be implemented, tax is not fully collected after these measures are implemented, in the cases specified in Clause 3 Article 125 of the Law on Tax Administration, or at the request of tax authorities.

Clause 5 stipulates that in case the customs authority requests the supervisory tax authority of the taxpayer to issue a decision on enforcement by suspending the use of invoices.

Based on regulations, the branch requested local tax branches to take enforcement measuresby suspending the use of invoices to collect taxes.

According to the branch, the tax debts mainly belong to export processing and producing enterprises. Most of these enterprises have yet to operate at the registered business address, making the debt collection of the Customs authorities face difficulties.

Mr. Le Hoang Minh, Head of the Tax Administration Team under the branch said that from the beginning of 2023, the branch has issued nearly 60 Coercive decisions on tax debtors. The branch has applied measures such as deducting money from accounts, stopping customs procedures, deducting part of salary or income, and notifying temporary suspension of exit.

Notably, by applying measures to collect tax debts, the branch contributed about VND2.2 billion to the State budget.

To strengthen the handling of tax debts, the Import-Export Tax Division has coordinated with the branches to review and classify tax debts arising before January 1, 2023 under four groups: Group of bad debts, group of frozen debts, group of pending debts and group of receivable debts; and applied appropriate solutions for each debt group.

The division has strengthened the collection of tax debts for declarations arising in 2022 and previous years; taken appropriate measures; drastically enforced, collected tax debt, reduced bad debts; prevented debts arising as of December 31 of the year higher than those on December 31, 2022.

HCM City Customs Department issued Plan 464/KH-HQTPHCM on February 27 strengthening the freezing of tax debts, deleting late payment fines and late payment interest for taxpayers who are no longer able to pay taxes under Resolution 94/2019/QH14, directing units to review bad debts and quickly implement debt settlement.