HCM City Tax Department collected tax arrears of nearly VND 3,000 billion from documentary examination and pre-inspection for enterprises at high tax risk.

Operations at District 1 Tax Branch under HCM City Tax Department: Photo: ST 

Many enterprises commit violations

Mr. Le Duy Minh, Director of HCM City Tax Department said under the inspection plan in 2020, as a result of the inspection by the end of October 2020 at 15,277 enterprises, the department collected VND2,916.2 billion of tax arrears and fines, reduced a deducted VAT amount of VND65 billion and a loss of VND18,171.7 billion.

Specifically, the department examined 925 tax records, with tax arrears and fines of VND1,192.2 billion, reaching 64% of the plan in2020, an increase of 37% year-on-year. In addition, the department reduced a deducted tax amount of VND93.7 billion and a loss of VND4,777 billion.

In addition to inspections, in the past ten months, HCM City Tax Department has also conducted 14,352 inspections at enterprises and collected tax arrears and fines of VND1,724 billion, down 36% year-on-year; reduced deducted VAT of VND271.4 billion and losses of VND13,395 billion. At the same time, 41,205 tax records were inspected at tax agencies, down 41% year-on-year and the additional tax was VND48 billion, up 57% year-on-year.

Analysis of the Ho Chi Minh City Tax Department shows that, through inspections, the department collected nearly VND1.3 billion per record on average; through tax examinations, the department collected VND129 million per record on average. This shows that there were many enterprises which committed violations of tax policies.

HCM City Tax Department has reviewedenterprisesthat collected high tax revenue but paid a low tax amount and assigned inspection divisions and tax branches managing these enterprises to contact them to find out the cause and urge them to pay corporate income tax in accordance with their actual business situation.

Enterprises at high tax risk inspected

According to Director Le Duy Minh, in the remaining months of the year, HCM City Tax Department has asked their units to strengthen supervision and inspection, particularly the inspection at tax agencies and not to conduct periodic inspections at taxpayers' offices for enterprises without signs of violation to facilitate them to solve problems and maintain production and business activities.The departmenthas striven to collect about VND1,370 billion through inspections and examinations.

Accordingly, the units were asked to focus on conducting inspections and pre-inspections for enterprises at high tax risk, collecting tax debts and inspecting enterprises with sudden increases in sales and profits and less affected by the pandemic; contacting enterprises on the inspection and examination not to affect their production and business situation before inspections; moreover, reviewing and checking sales on declarations, capturing business results of enterprises, groups, corporations and commercial banks to urge temporary payment of corporate income tax in 2020 before October 31, 2020; urging the timely payment of the dividends and remaining profits to the state budget according to regulations; reviewing and urging the timely payment into the budget for revenues of 100% of the central budget, such as fees, charges, land fees and other revenues.

In the first ten months of 2020, HCM City Tax Department collected VND207,447 billion, or 71.33% of the estimate in 2020, a year-on-year decrease of 11.4%. This is the lowest result compared to the estimate of HCM City Tax Department in recent years. This resulted from the Covid-19 pandemic that affected business and production activities,the extension of tax and land rental payment deadlines according to Decree 41/2020 / ND-CP; the extension of consumption tax payment deadlines according to Decree No. 109 / ND-CP and policies to remove difficulties for enterprises.

In the two remaining months of the year, domestic revenue (excluding crude oil) will be about VND39,700 billion; total domestic revenue for the whole year 2020 will be about VND248,567 billion, or 85.47% of the estimate and down 14.5% year-on-year.