Bamboo Airways asks for support to remove difficulties and handle tax debts

Bamboo Airways has requested the removal of tax enforcement restrictions, including the temporary travel ban imposed on Mr. Luong Hoai Nam. The company has proposed a plan to gradually pay the outstanding tax debt on a monthly basis, with a committed amount of 10 billion VND per month.

Continue to cry for help.

In a six-page letter sent to the Ministry of Finance , the General Department of Taxation, and the Binh Dinh Provincial Tax Department on October 3, 2024, signed by Ms. Le Thi Truc Quynh, Deputy General Director of Bamboo Airways, Bamboo Airways stated that despite taking decisive actions and implementing comprehensive restructuring, its operations still face numerous existing difficulties and challenges.

At the same time, over the past period, Bamboo Airways has continuously received decisions and notices from the Binh Dinh Provincial Tax Department regarding the application of coercive measures such as deducting money from accounts and freezing accounts; especially the notice of temporary travel ban for Mr. Luong Hoai Nam, the legal representative of Bamboo Airways, because the company has not fulfilled its tax obligations.

According to Bamboo Airways, the temporary travel ban imposed on Mr. Luong Hoai Nam, a person trusted by the company and entrusted with the mission of reforming the airline, has caused unnecessary inconvenience and losses.

“In the context of restructuring, when the company desperately needed an experienced ‘captain’ ready to face any challenge, Mr. Luong Hoai Nam demonstrated decisive action to overcome difficulties and lead the airline towards stability and development. However, applying this measure not only seriously affected his personal image but also caused emotional distress and loss of rights for Mr. Luong Hoai Nam, who bravely stood up to represent the airline during its most difficult period,” Bamboo Airways explained.

Bamboo Airways also listed “negative impacts and serious consequences for all of Bamboo Airways’ operations” resulting from the application of coercive measures to collect tax debts and the temporary suspension of departures.

This includes obstacles and disruptions to the company's restructuring process (Mr. Luong Hoai Nam was temporarily prohibited from leaving the country, preventing him from participating in planned meetings and negotiations with partners); and difficulties in restructuring debt and raising capital for the company's business operations (partners and suppliers demanded payment; banks stopped disbursing funds and implemented measures to recover debts before maturity).

In it, Bamboo Airways stated that "recently, after media reports about the temporary travel ban imposed on Bamboo Airways' legal representative, many sources have emerged with negative viewpoints/orientations, affecting the trust of customers and partners in Bamboo Airways."

"In fact, Bamboo Airways' revenue immediately suffered a significant drop (approximately 60%) compared to before that time, due to many partners canceling contracts and customers no longer using the company's products/services."

Bamboo Airways believes that the existing difficulties, if not addressed and resolved promptly by relevant authorities, could force it to cease operations and face the risk of bankruptcy.

“This could also lead to a chain reaction of failures as banks are unable to recover trillions of dong in loans; suppliers are unable to recover costs related to providing goods/services; the state cannot recover tax debts; and consumers lose an airline with quality flight services at competitive prices. Consequently, the aviation market and the tourism market will be severely affected,” Bamboo Airways listed the impacts.

Therefore, Bamboo Airways "urgently requests" that the authorities consider and support the company's efforts to restructure and restore its business operations by removing restrictive tax enforcement measures, especially the temporary suspension of entry and exit for Mr. Luong Hoai Nam.

"Removing this measure will give Bamboo Airways the opportunity to implement and complete the restructuring as directed, allowing the company's operations to return to normal, ensuring continuous revenue, stabilizing finances, quickly settling tax debts, and continuing to contribute to the local budget," Bamboo Airways explained regarding the proposal.

At the same time, Bamboo Airways also requested that the authorities consider and approve the company's request to gradually pay its outstanding tax debt on a monthly basis, with a committed amount of 10 billion VND per month. The monthly payment amount may be adjusted above the proposed level once Bamboo Airways' revenue stabilizes.

Bamboo Airways affirms that, if approved, the company will work with credit institutions to issue a guarantee letter in accordance with the law regarding the amount of tax debt proposed for installment payment and commits to a schedule for paying the outstanding tax debt and late payment penalties into the state budget.

What did the Binh Dinh Provincial Tax Department say?

On October 7, 2024, Mr. Nguyen Ngoc Son, Deputy Director of the Binh Dinh Provincial Tax Department, signed a letter responding to the requests of Tre Viet Aviation Joint Stock Company.

According to the Binh Dinh Provincial Tax Department, regarding the proposal to postpone tax enforcement measures and allow for installment payment of tax arrears, in its report to the Government on January 25, 2024, the Ministry of Finance stated that "in order to be allowed to pay tax arrears in installments, Tre Viet Aviation Joint Stock Company must prepare complete documentation as stipulated in Clause 2, Article 66, Circular No. 80/2021/TT-BTC (including a guarantee letter from a credit institution) and submit it to the directly managing tax authority for consideration and processing of installment payment of tax arrears in accordance with the prescribed authority."

"In the event that Tre Viet Aviation Joint Stock Company fails to complete the documentation for installment payment of outstanding tax debts, the tax authorities will apply coercive measures in accordance with the Law on Tax Administration and its implementing regulations."

The Binh Dinh Provincial Tax Department stated that it has not yet received the company's application for installment payment of outstanding tax debt as stipulated in Clause 2, Article 66 of Circular No. 80/2021/TT-BTC for consideration and issuance of a decision approving the installment payment of tax debt.

Therefore, the Binh Dinh Provincial Tax Department has no basis to refrain from implementing tax enforcement measures as stipulated in the Law on Tax Administration against the Company.

Regarding the temporary travel ban imposed on the company's legal representative, the Binh Dinh Provincial Tax Department informed that, as of July 31, 2024, Tre Viet Aviation Joint Stock Company still owed the State budget a tax debt of VND 296,109,090,593.

On August 27, 2024, the Binh Dinh Provincial Tax Department issued 11 decisions to enforce tax collection by deducting money from accounts and ordering account freezing for the Company (from Decision No. 888/QD-CTBDI to Decision No. 898/QD-CTBDI). In addition, on September 11, 2024, the Tax Department issued a notice temporarily suspending the exit of the Company's legal representative.

"The Binh Dinh Provincial Tax Department has repeatedly urged and notified the company about outstanding tax debts, invited them for meetings... through various means, but the company has still not fulfilled its tax obligations," stated the response from the Binh Dinh Provincial Tax Department.

Based on the regulations and the company's tax debt situation, the Binh Dinh Provincial Tax Department responded that "there is no basis to announce the cancellation of the temporary travel ban for the company's legal representative."

Source: https://baodautu.vn/bamboo-airways-xin-ho-tro-thao-go-kho-khan-va-xu-ly-no-thue-d226874.html