Proposal to temporarily suspend exit from the country for individuals and business owners with tax debts

August 26, 2024 14:44 Nhat Linh Print article

ANTD.VN - The Ministry of Finance proposed to add subjects temporarily suspended from exit due to tax debts, including: Individuals who are legal representatives of cooperatives, cooperative unions, individuals who are business household owners, and individual entrepreneurs.

The Ministry of Finance is drafting a proposal to develop a law project to amend and supplement a number of articles of the Securities Law, the Accounting Law, the Independent Audit Law, the State Budget Law, the Law on Management and Use of Public Assets, the Tax Management Law, and the National Reserve Law.

One of the notable points is that in the draft to amend and supplement a number of articles of the Law on Tax Administration, the Ministry of Finance wants to add more subjects that are temporarily suspended from exiting the country, including: individuals who are legal representatives of cooperatives, cooperative unions, individuals who are business owners, and individual entrepreneurs.

The Ministry of Finance proposes to expand the list of tax debtors whose exit from the country is suspended (Illustration photo)

Currently, according to the Law on Tax Administration, "taxpayers" include both organizations and individuals. Therefore, the temporary suspension of exit from the country only applied to individuals who are legal representatives of enterprises as currently is not suitable for practice.

Therefore, the Ministry of Finance believes that the measure of temporary suspension of exit should be applied to subjects being individual taxpayers and other individuals who are legal representatives of tax-paying organizations as mentioned above.

According to data from the General Department of Taxation, in the first 7 months of 2024, the Tax sector has issued exit suspension notices to 17,952 cases with tax arrears of VND 30,388 billion. Accordingly, the tax authority has collected VND 1,341 billion from 2,116 taxpayers who are being temporarily suspended from exit, equal to 45% of the debt collection by debt enforcement measures (VND 2,980 billion). This shows that the effectiveness of the enforcement measure of exit suspension is very effective in tax debt collection.

In addition to temporarily suspending exit from the country, the tax sector applies many debt enforcement measures such as seizing assets and collecting through third parties in cases of procrastination, signs of asset dissipation, and absconding.

However, according to the Ministry of Finance, the seizure of assets and collection from third parties has some shortcomings. For example, tax officials find it difficult to determine the ownership of assets of taxpayers for enforcement purposes. Determining the proportion of tax debtors' responsibility for the contribution of enterprises or their assets with co-owners is also not easy. Not to mention, most of taxpayers' assets are mortgaged at credit institutions, and the asset's useful life is low.

Therefore, the Ministry of Finance believes that applying the above measures is very complicated, depends on many related parties, and tax authorities do not have enough resources to promptly implement them with all subjects of enforcement.

Therefore, the Ministry proposes to add a regulation that tax authorities will only seize assets and collect from third parties when they have full information and conditions. This measure also does not require compulsory enforcement on all. This helps tax authorities focus resources on key subjects with the ability to collect debts.

In addition, the Ministry of Finance also added regulations allowing the immediate application of appropriate measures if taxpayers have acts of dispersing assets or absconding in order to promptly collect tax arrears into the state budget.

Source: https://www.anninhthudo.vn/de-xuat-tam-hoan-xuat-canh-voi-ca-nhan-chu-ho-kinh-doanh-no-thue-post587276.antd