Strengthening tax debt management

The total tax debt managed by the tax authorities remains high at VND 1,073.1 billion. Therefore, managing tax debt and promptly collecting it for the state budget is a key task that the tax authorities will focus on from the beginning of 2024.

Recovering 428.6 billion VND in collectible debts.

In 2023, the entire tax sector implemented a comprehensive set of solutions for managing tax debt. This included directing units to review the tax debt situation of businesses operating in the petroleum industry and taxpayers with significant outstanding tax debts. Immediate measures were taken to urge and enforce collection of outstanding tax debts into the state budget, preventing the accumulation of new debts. Simultaneously, efforts were made to process, freeze, and write off debts that were no longer collectible; review tax declaration data and payment documents; and review, classify, and analyze the causes of debt for each taxpayer. A list of businesses and individuals with outstanding tax debts was compiled, categorized by debt type and amount.

Effective debt collection ensures fairness for businesses.

The entire tax authority issued 966,254 electronic notices to taxpayers urging them to pay; 943 decisions to enforce the deduction of money from accounts and freeze accounts for cases with debts exceeding 90 days, totaling VND 1,307 billion; and 229 decisions to enforce the collection of invoices, totaling VND 229.8 billion... Information on 243 taxpayers who were delinquent in paying taxes and failed to pay on time was publicly disclosed through mass media. With the above measures, the entire tax sector recovered VND 428.6 billion in collectible debts from the previous year, achieving 70% of the assigned debt target (VND 612.2 billion). Of this amount, VND 362.7 billion was collected through debt management measures, and VND 65.9 billion was collected through debt enforcement measures. The total amount of tax debt managed by the tax authorities at the end of 2023 was VND 1,073.1 billion, a decrease of 19.5% compared to 2022, and the ratio of tax debt to total revenue in 2023 was 11.9%.

Classify the debts of each tax debtor in order to develop appropriate debt collection solutions.

According to the Provincial Tax Department, the reasons for tax arrears include several businesses incurring large tax liabilities such as quarterly VAT declarations, resource tax, and corporate income tax settlements for 2022, but have not yet paid the full amount owed to the State budget due to financial difficulties. In addition, some projects have outstanding debts for land use fees, land lease fees, and mineral exploitation rights fees due to obstacles preventing them from operating or exploiting resources, pending local authorities resolving land clearance issues, compensation disputes, or waiting for approval of plans to adjust land use purposes or exploitation areas. However, according to legal regulations, the tax authorities calculate the debt based on the notices for payment of land use fees, land lease fees, and mineral exploitation rights fees, leading taxpayers to delay payment. Some tax and land lease payments have exceeded the extension period stipulated in government decrees and decisions aimed at alleviating difficulties for citizens and businesses. Tax authorities have implemented measures to urge collection, but taxpayers still face cash flow difficulties and have not been able to pay the extended taxes into the state budget…

Solutions to reduce tax debt

Continuing to identify debt collection as a key and ongoing task for all tax officials, the tax sector leadership has assigned specific and detailed tax debt collection targets for the year to each department head, sub-department head, team leader, and individual officer since the beginning of 2024. They have focused on strengthening debt management measures according to the set plan. Simultaneously, they have aggressively implemented debt handling and enforcement plans as directed by the Ministry of Finance and the sector, coupled with reviewing and classifying debts, accurately compiling the total amount of tax debt, and analyzing the causes of debt for each debtor to develop effective debt collection strategies. They have also organized local inspection teams to review debt management and urge the handling of outstanding tax debts at several tax sub-departments with large and increasing tax debts; and conducted thematic inspections on the implementation of debt management and enforcement procedures at departments and sub-departments to promptly detect and correct violations in debt management. Simultaneously, it is necessary to intensify the dissemination of legal regulations on tax arrears to improve compliance and encourage taxpayers to voluntarily and conscientiously fulfill tax payment regulations.

The tax sector actively coordinates with relevant agencies in the recovery of outstanding tax debts for the State budget, and proposes the definitive resolution of long-standing and persistent debts. It focuses on reviewing projects whose tax incentives have expired, newly arising projects, and retroactive tax collection as recommended by audit and inspection agencies... in order to collect taxes, fees, charges, revenue from land, resources, minerals, and other revenues into the State budget accurately, fully, and promptly.

Source: https://baobinhthuan.com.vn/tang-cuong-quan-ly-no-thue-116236.html