According to Mr. Nguyen Dai Tri, Deputy Director General of the General Department of Taxation, as of May 30th, the total amount of outstanding tax debt nationwide was 70.000 billion VND. Of this amount, 15.555 billion VND is tax debt that is unrecoverable.
At the Ministry of Finance's regular press conference, Mr. Nguyen Dai Tri, Deputy Director General of the General Department of Taxation, shared an overview of the tax arrears situation nationwide.
Specifically, as of May 30th, the tax sector had successfully collected 20.000 billion VND in outstanding tax debts from 2015 (an increase of 17,9% compared to the same period last year, reaching 27,7% of this year's debt collection target).
To date, the total amount of outstanding tax debt nationwide is 75.230 billion VND. The total tax debt nationwide has increased by 1.335 billion VND compared to December 31, 2015 (an increase of 1,8%, a decrease of 770 billion VND, or 1%, compared to the figure announced on April 30).
Of this amount, tax arrears overdue for 90 days or more exceeded 34.500 billion VND (accounting for nearly 46% of the total tax debt). Overdue taxes and fees totaled 22.797 billion VND, and land-related debts amounted to 11.456 billion VND. 25.122 billion VND was in fines and late payment penalties (accounting for 33,4% of the total tax debt).
Over the past six months, the Inspectorate of the Ministry of Finance conducted 11 inspections and audits, recommending financial penalties totaling 1.811 billion VND. Tax authorities inspected nearly 22.000 businesses, resulting in increased revenue of 4.270 billion VND, a 31,9% increase compared to the same period last year. As of June 2016, authorities had apprehended and processed over 6.760 cases of smuggling and trade fraud, involving goods valued at 290 billion VND, resulting in an additional 52 billion VND in revenue for the state budget.
Notably, the amount of uncollectible tax debt has increased. According to Mr. Tri, this figure is 15.555 billion VND (accounting for 20,7% of the total tax debt). Compared to December 31, 2015, this figure has increased by 745 billion VND, or 5%. Compared to one month earlier, the amount of uncollectible tax debt increased by 205 billion VND, or 1,3%. Of this, the amount of uncollectible late payment penalties is 5.736 billion VND.
Explaining the increase in potentially uncollectible tax arrears, Mr. Tri said: “The amount of tax arrears in the first six months of this year increased slightly compared to the end of 2015, due to the economy recovering but still slowly, so businesses are still facing difficulties, experiencing losses, and having limited ability to pay. A number of businesses are still delaying tax payments…”
Furthermore, a number of businesses are still delaying tax payments. Many businesses have 3-4 bank accounts but only provide one to the tax authorities, making it very difficult to thoroughly monitor their income sources.
However, Mr. Tri affirmed: "The tax authorities will coordinate with the State Bank of Vietnam, the Ministry of Public Security, the courts, etc., to establish inter-agency task forces to recover tax debts. Conversely, the tax authorities will also advise local Party committees on measures to remove difficulties for businesses in order to nurture revenue sources."
Source: Baomoi.com
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