Along with nurturing and effectively exploiting revenue sources for the state budget, the provincial tax department has recently been resolutely implementing solutions to handle and recover outstanding tax debts and combat budget revenue losses. This is an important task to ensure the completion of the state budget revenue target and to achieve social equity.
In implementing Directive No. 06/CT-UBND dated May 11, 2018, of the Provincial People's Committee on strengthening tax management and recovering outstanding tax debts in the province, from the beginning of the year, the Provincial Tax Department has assigned debt collection targets to each unit and officer, and regularly urged units to actively collect debts using methods in accordance with the law. The tax agency skillfully integrated tax debt collection into propaganda, consultation, and support for taxpayers, and significantly improved methods through direct contact, telephone, and email to remind organizations and individuals to fulfill their tax obligations.
The process of reviewing and classifying tax debts is carried out cautiously and accurately, ensuring that the classification is complete with proper documentation, reflecting the true nature of the tax debt and each case of tax debt, in order to apply appropriate measures for collection, enforcement, and other measures. The Provincial Tax Department leadership requires the debt management department to regularly monitor the production and business situation, paying attention to resolving objective obstacles and difficulties for taxpayers, so that taxpayers can stabilize production and fulfill their obligations to the State budget. Through this, the tax authority has a firm grasp of revenue sources and the debt repayment capacity of taxpayers in its managed area; specifically analyzes the causes affecting the increase or decrease of tax debt in each area, sector, and taxpayer, and forecasts monthly and quarterly debt repayment capacity that closely matches the actual conditions and circumstances of taxpayers. Along with this, it implements debt handling, debt restructuring, and debt write-off for debts that are no longer collectible by the State budget. The tax authorities are strengthening the management of tax debt recovery to minimize the number of new debts incurred. For those with persistently delinquent debts, the tax department is coordinating with commercial bank branches and the State Treasury to freeze accounts and deduct funds from these accounts to transfer to the state budget; and declaring invoices invalid. In addition, alongside increased penalties for late payments, the unit is also linking tax inspection with tax debt collection, coordinating with relevant agencies to implement coercive measures for tax debt collection. From the beginning of the year to the end of October 2023, the provincial tax department issued 120,418 notices of tax debt to taxpayers; publicly announced 1,736 taxpayers with tax debts; and issued 14,375 decisions on coercive tax debt collection. The cumulative tax debt collection results for the past 10 months reached 10,815 billion VND.
Despite vigorous efforts in managing and collecting tax arrears, the tax debt ratio remains high. This is due to the lingering effects of the Covid-19 pandemic from previous years, the difficulties faced by businesses in production and operations, and the fact that many businesses are experiencing losses, insolvency, and have mortgaged assets to banks, leading to delays in paying taxes due to the state budget. Some tax and land lease payments have expired, and although tax authorities have implemented collection measures, taxpayers still face cash flow difficulties and have not been able to pay the extended taxes. Furthermore, many businesses are not complying well with their tax obligations, deliberately delaying payments and misappropriating tax funds, resulting in new debts arising before old debts are fully repaid. Some businesses with large debts include: Hung Yen Export Food Joint Stock Company (An Tao Ward, Hung Yen City) owing over 285.9 billion VND; Van Thuan Phat Real Estate Joint Stock Company (Ban Yen Nhan ward, My Hao town) owes over 87 billion VND; Phuc Hung Construction Investment Joint Stock Company (Hien Nam ward, Hung Yen city) owes over 56.3 billion VND...
To enhance tax debt recovery, the tax authorities will continue to review and classify debts, analyze the causes of debt for each entity, and compile lists of businesses and individuals with tax debts according to different cause groups. Based on this, appropriate debt collection measures will be applied to each entity. Aggressive action will be taken against entities with large and long-standing debts through increased inspections, audits, and debt collection efforts. Simultaneously, recommendations will be made to competent authorities to revoke investment licenses and projects for entities with long-standing land lease and land use fee debts; and to transfer files of businesses suspected of misappropriating or evading taxes to the police for resolution and handling according to the law. The outstanding debts will be definitively resolved, and reports will be submitted to the General Department of Taxation to address bottlenecks in mechanisms and policies related to debt, especially those related to land. The collection of extended payments for value-added tax, corporate income tax, and land lease fees will be expedited according to the prescribed deadlines. Strengthen coordination with media agencies to disseminate information and encourage taxpayers to voluntarily fulfill their tax obligations, and publicly disclose entities that deliberately delay or fail to pay taxes on time to the state budget.
Minh Nghia
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