September 22, 2019 07:15

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Tax sector attempts to 'hold' tax debt at lowest level

13:28 | 19/08/2019

VCN - Although the tax debt by the end of July decreased compared to the same period last year, it increased nearly 9 percent compared to the end of 2018.

tax sector attempts to hold tax debt at the lowest level Tax sector enhances information and dialogue with taxpayers
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tax sector attempts to hold tax debt at the lowest level Fifty-five local taxation departments see revenues increase
tax sector attempts to hold tax debt at the lowest level
The irrecoverable debts still increases day by day due to the late payment fine of 0.03 percent per day. Photo: T.Linh

To control the 2019 tax debt at the lowest rate, the Tax sector is reviewing and developing specific plans and drastically directing each unit.

Recoverable debts account for 53 percent

According to the latest report from the General Department of Taxation, the total amount of tax debts as of July 31, 2019 was VND 83,158 billion. This amount decreased by 5.7 percent (equivalent to nearly VND 5,000 billion) compared to the same period in 2018 and decreased by 0.3 percent compared to June 30, 2019. In particular, 90-day and more than 90-day tax debts were 44,148 billion VND, accounting for 53 percent of the total debt, down by 16.9 percent (equivalent to nearly VND 9,000 billion) compared to the same period in 2018.

Besides, the tax and fee debts were VND 16,539 billion, accounting for nearly 20 percent of the total tax debt, down by 38.8 percent (equivalent to nearly VND 10,500 billion) compared to the same period of 2018. Land related debts were VND 10,931 billion, accounting for 13.1% of the total tax debts. Debts due to administrative fines and late payment fines were VND 16,678 billion, accounting for 20.1 percent of the total tax debts.

Notably, irrecoverable tax debts (taxpayers are dead, missing, lose civil act capacity, are related to criminal liability, are dissolved, bankrupted, stop production and business activities or no longer operate at the registered business address) amounted to VND 39,010 billion, accounting for 46.9 percent of total tax debt, up 11.4 percent (equivalent to VND 3,992 billion) compared to the same period in 2018, and up by 3 percent over the time of June 30, 2019.

Also, by July 31, 2019, the tax agencies has implemented measures to urge debt collection. As of December 31, 2018, the tax revenue was VND 19,440 billion, equal to 50.2 percent of 90-day and over-90-day tax debts at December 31, 2018, a year on year increase of 2.4 percent. Of which, revenue by debt management measures was VND 12,553 billion; revenue by debt enforcement measures was VND 6,887 billion.

The amount of tax debts so far has increased by 8.9% compared to the end of 2018 because some taxpayers are dead, missing or lose their civil capacity civil, or are related to criminal liability. This raised the amount of irrecoverable tax debts. Moreover, the irrecoverable debts are subject to late payment fine of 0.03 percent per day. Therefore, the debts still increase day by day.

The General Department of Taxation also raised another reason for the increase in tax debt that many production and business enterprises are facing difficulties, do not have, orders, or lack capital, so they fell into a loss of tax payment. Moreover, there were taxpayers deliberately delaying tax payment or taking up tax amount despite coercive measures in accordance with the Law on Tax Administration. Debts related to land use, land lease and mining fees of local projects, which have land allocated, are also increasing.

Establishing a steering committee for anti-revenue loss and debt collection

To control tax debt, the General Department of Taxation has continuously introduced solutions and closely directed each unit. The General Department has enhanced the sense of responsibility of the head and each civil servant in collecting tax debts. At the same time, assessing, classifying and standardising tax debt data. Thereby, proposing appropriate debt collection solutions and thoroughly implementing measures to recover tax debts such as: extracting money from accounts, blocking accounts, announcing invoices that are no longer valid for use, detaining assets, revoking business licenses, disclosing information about tax payers.

Tax agencies at all levels also work with local authorities in recovering tax arrears; establish a steering committee for anti-revenue loss and tax debt collection, and focus on collecting land-related debts of projects managed by local administrations.

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So far, the Tax sector has reviewed tax debts at 54 tax departments, only 9 tax departments with low revenues have not been reviewed. After reviewing and inspecting debt collection, the General Department has requested tax departments to introduce synchronous and drastic solutions to reduce the tax debts to the lowest tax level from the end of 2019.

By Thuy Linh/ Huyen Trang