Facing many difficulties in State budget collection, debt management is considered a focus by the tax sector to fulfill the assigned target at the highest level.

As of September 30, the tax sector collected VND 20,292 billion of debt.
Photo: Thuy Linh

Debt collection in the past nine months only reached 60% of assigned target

In terms of debt management, the General Department of Taxation has assigned aminimum target and desired outstanding debt collection in 2020 of VND 33,800 billion and striving to reach VND 40,000 billion respectively, so far. According to the latest reports from tax agencies, in September, the tax agencies at all levels collected VND 2,777 billion accumulated to September 30, collected debts were VND 20,292 billion, reaching 60% of the target, a year-on-year increase of 5.9%. In which, revenue by debt management measures was VND 14,004 billion and revenue from debt coercive measures was VND 6,288 billion.

The General Department of Taxation said in the last three months of the year, the General Department instructed tax departments to collect debts of at least VND 13,508 billion equivalent to monthly revenue of VND 4,500 billion.The key task of debt management is to accelerate the solving of difficulties and problems, to support taxpayers and tax debtors to maintain production and business, and handle cases where taxpayers are entitled to extension of tax debt payment, tax payment by installments and are exempt from late payment interest and entitled to tax debt write-offs according to the provisions of the Law on Tax Administration and Government decrees and resolutions.

In addition, the General Department of Taxation will announce a list of enterprises with tax debt, who are highly capable of debt payment and taxpayers who have paid tax debt and are waiting for adjustment, taxpayers with tax debt who are being processed, taxpayers with tax debt complaining to each tax department to review and take measures to urge, coerce and disclose information to recover debts into the State budget, to prevent enterprises from taking advantage of the State's tax support policies to evade taxes and delay tax payment

Tax debt settlement

In addition to managing debts to ensure debt collection targets, tax departments across the country are also handling debts according to the National Assembly's Resolution No. 94/2019 / QH14 dated November 26, 2019 on freezing tax debts, writing off late payment fines and late payment interest for taxpayers who are no longer able to pay debts. Many localities have publicised the list of enterprises and taxpayers subject to debt freezing and write-offs on their portals.

According to Bac Giang Tax Department, the unit has reviewed and prepared documents to freeze tax debts for 150 cases under its management with a total amount of more than VND 45.3 billion, including Bac Giang Irrigation Construction Joint Stock Company with a frozen debt of more thanVND 10.7 billion; Bac GiangExploitable Mineral Joint Stock Company had a frozen debt ofsomeVND 4.6 billion; DKT Investment Service and Trading Joint Stock Company had a frozen debt in excess of VND 4.4 billion.

At the Thai Nguyen Tax Department, this unit has published a list of 70 taxpayers (business owners) proposed for tax debt write-off. In this list, there are 50 taxpayers who no longer operate at business addresses with debts arising before July 1, 2020 with a debt amount of late payment fines and late payment interest of more thanVND 215.8 million. In addition, one taxpayer who has applied for initiate bankruptcy proceedings has debtsarising before 1 July 2020 with debt amount of late payment fines and late payment interest of more than VND 10.2 billion. Nineteen taxpayers who gained dissolution decisions have debts arising before July 1, 2020, with a debt amount of late payment fines and late payment interest of more than VND 50 billion.

For example: Viet Bac Co., Ltd. is proposed for debt writing-off for late payment fines and late payment interest of more than VND 47 billion; Gia Sang Steel Joint Stock Company more than VND 10.2 billion and Branch 522 - Viet Bac Co., Ltd of more than VND 2.1 billion.

Thai Nguyen Tax Department said most of the above taxpayers and tax debtors no longer operate at business addresses registered with the business registration office and tax administration agency; tax payers have applied for bankruptcy proceedings; taxpayers have gained dissolution decisions and sent them to the tax agency or business registration office to carry out dissolution procedure; or the business registration office hasnotified that taxpayers are carrying out dissolution procedures on the national information system on business registration but taxpayers have not completed dissolution procedures.

For these cases, Thai Nguyen Tax Department will publicise information within 30 days from September 21, 2020 to October 20, 2020. After this period, if the tax agency does not receive any response from the organisation or individual, the tax agency shall carry out procedures to write off debts of late payment fines and late payments interest of taxpayers according to the law.