Officers at Ha Nam Customs Branch (Ha Nam Customs Department). Photo: H.N

Facing difficult in handling tax debts

Twenty-five enterprises have tax debts at Ninh Binh Customs Branch and Nam Dinh Customs Branch, and through post clearance audit.

Of which, Phu Son Cement Joint Stock Company has a tax debt of over VND16.8 billion, Tam Diep Steel Rolling Co. Ltd., with a tax debt of over VND5.7 billion, Duc Phuong Company Limited of nearly VND5 billion, Xuan Thai Investment and Development Co., Ltd of over VND4.4 billion.

According to Linh all the debts arose before the establishment of Ha Nam Ninh Customs Department (September 1, 2016), which were transferred by Thanh Hoa Customs Department. Almost all these debts are irrecoverable.

Although the department has taken measures to collect tax debt such as verifying the operation status of enterprises with local police and tax authorities, searching for information of enterprises on the website of the General Department of Taxation, identifying bank accounts and enforcing delays to customs procedures or proposing the tax sector to enforce VAT invoice, it has not yet collected all tax debts.

Currently, in the area managed by Ha Nam Ninh Customs Department, Phu Son Cement Joint Stock Company has a tax debt of over VND16.8 billion due to its inefficiency and delays in production.

Some other companies such as Truong Dat Trading and Service Co., Ltd., STAR Trading Co., Ltd., Tam Diep Steel Rolling Co., Ltd., TVT Group Joint Stock Company, Phu Binh Co., Ltd., Minh Quang Textile and Garment Co. Ltd., have tax debts under decisions, tax arrears, tax assessment or from post clearance audit, adjustment of taxable prices, goods eligible for tax exemption.

Some companies have owed late payment interest such as Xuan Thai Investment and Development Company Limited, Tam Diep Steel Rolling Company Limited, Nam Dinh Electronics Refrigeration and General Services Joint Stock Company.

Currently, there is an overdue tax debt of Minh Hien Co. Ltd., and the Textile, Handicraft Joint Stock Company. Although Minh Hien Co. Ltd., has been exempt from tax under regulations of the Law on Import and Export Duty, the company has not yet carried out procedures for tax exemption for raw materials and supplies of the import declarations that are pending on the system.

The reason is that the legal representative of this company is currently serving a judgment, so he cannot provide information and report on settlement for Customs to handle according to regulations.

The department has faced difficulties in the verification process to cancel the late payment interest of a company importing motorcycle parts named Duc Phuong Co., Ltd.

According to Deputy Director Trinh Mac Linh, this company had a late payment interest since 2000 at the customs and tax authorities. The company has disbanded its operation in Nam Dinh province. Therefore, the department is working with other competent agencies to investigate and complete procedures for tax debt cancellation for the company.

Closely coordinating with local government

In 2021, Ha Nam Ninh Customs Department was assigned a target of collecting tax debt of over VND21.8 billion. Currently, the department has only collected over VND356 million.

To achieve better results in tax debt collection, the provincial customs department continues to take measures to collect outstanding tax debts. It focused on effective measures such as checking and grasping the tax debt status, classifying recoverable debt groups and irrecoverable groups, assessing each debt amount of each declaration form and each business, understanding the actual status of businesses and causes for failing to collect debt to provide appropriate handling measures.

The customs department has closely coordinated with local government to effectively collect tax debts. It has expedited inspection for tax dossiers of taxpayers to handle debts. In addition, it has also reviewed companies that have tax debts, late payment interest, fines and are not subject to debt cancellation to urge and take measures for debt collection.