VCN- Among more than 1,000 enterprises with a total of nearly 1,000 billion VND of import-export tax debts reported by the Ho Chi Minh City Customs Department to the General Department of Vietnam Customs, most are foreign direct investment enterprises and subject to bad debt.
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150 billion VND of tax debts and suspended operation
According to Ho Chi Minh City Customs Department, these bad debts are mostly subject to coercive debts and have arisen over many years. Many tax debtors have vacated their business registration addresses. Among these, many enterprises have huge tax debts of over 150 billion VND and dozens of enterprises have tax debts of tens of billions of VND.
According to the list of enterprises with tax debts announced by Ho Chi Minh City Department, NIVL Joint Stock Company (Hamlet 6, Luong Hoa Commune, Ben Luc District, Long An province) topped the list. As of the end of April 2019, this company owed some 150 billion of tax debt.
NIVL Joint Stock Company is a fully foreign-owned company, licensed in 1998, started operation in 2007 and A Nanda Kumar is a director. The business lines of this company include production, transmission and distribution of electricity; trading rice and food. This tax debt is under the three import declarations according to the regime of export production investment arising at Ho Chi Minh Customs Department since 2013, including import tax and customs fees.
According to Ho Chi Minh City Customs Department, this tax debt of NIVL Joint Stock Company is calculated to the end of April 2019 and excluded the fines for late tax payment for many years. This company has stopped its operation and the company’s director has returned to his country and left a huge tax debt.
“Huge debt” belongs to FDI enterprises
Among more than 1,000 enterprises having a total of nearly 1,000 billion VND of import-export tax debts listed by the Ho Chi Minh City Customs Department to the General Department of Vietnam Customs, most of them are foreign direct investment enterprises and subject to bad debt. In addition to NIVL Joint Stock Company, there are dozens of companies owing huge tax debts of tens of billions of VND. Typically, Silver Star Ent.Co.,Ltd Vietnam owed more than 47 billion VND. This tax debt amount is under 376 import declarations in 2007 and 2008. This company was licensed in 2008 for footwear production, and located at E4/48 KP5 Binh Tri Dong B Ward, Binh Tan District, Ho Chi Minh City. The company stopped operation in 2011 but has not yet implemented procedures for closing tax code.
Neocacse Inc Vietnam Co., Ltd., owes nearly 30 billion VND. This company was established in 2007, located at 532A TA 28 Street, Block 2, Thoi An Ward, District 12, Ho Chi Minh City, the legal representative is JEON JEONG JAE and it closed its tax code since April 2014. In 2012 and 2013 this company opened 540 declarations to import goods. The tax debt amount includes import-export taxes and customs fees.
Enterprises with large tax debts subject to bad debts at Ho Chi Minh City Customs Department are mostly enterprises trading footwear, leather shoes, garment and registering the regime of export production investment and processing import.
Kwang Nam Shoes Co.,Ltd (address 426 Ho Van Hue, Ward 9, Phu Nhuan Ho Chi Minh City), the business lines includes manufacturing and trading shoes and leather shoes. The company registered more than 700 customs declarations from 1994 to 1999 with tax debt of nearly 36 billion VND; Hong Better Garments Factory Co.,Ltd with tax debt of 22.4 billion VND; MCFair SaiGon Garment Joint Venture Company Limited with business lines for garment with tax debt from 128 import declarations in 2008); Sang Chun Co.,Ltd was established on April 30, 2005, its legal representative was Song Chun Yeong, owing 20 billion VND under 189 import declarations.
A series of companies have large debts such as S.M Garment Co.,Ltd owes 17.4 billion VND; Karos Company (District 2, Ho Chi Minh City) owes nearly 21 billion VND of more than 300 imported customs declarations in 2003 and 2004; Vina Haeng Woon Industry Co., Ltd, owes more than 21 billion VND; Fashion Sepplus Vietnam Co.,Ltd owes over 19 billion VND.
According to Ho Chi Minh City Customs Department, the above tax debts are mostly subject to coercive debts, arising from many years. In particular, many tax debtors vacated their business registration addresses.
As of May 15, 2019, total bad debt at Ho Chi Minh City Customs Department was more than 1,400 billion VND. Nearly 1,000 billion VND of more than 1,000 enterprises is also included in this debt. These bad debts were incurred many years ago and the enterprises are no longer operating at their business registration addresses. Although Ho Chi Minh City Customs Department has applied measures to recover tax debt under the Law on Tax Administration, it is still ineffective.
By Le Thu/ Ngoc Loan