Consequences of abandoning a business that owes taxes.

Cases where businesses are subject to enforced tax debt collection from taxpayers.

• Taxpayers who owe taxes and late payment penalties for more than 90 days from the expiration of the tax payment deadline or extended deadline as stipulated in the Law on Tax Administration and by competent state agencies;
• Taxpayers who owe taxes, fines, or late payment penalties and who abscond or conceal assets;
• Taxpayers who fail to comply with administrative tax penalty decisions within 10 days of receiving the decision will be subject to enforcement measures to prevent further violations.

In cases where a tax violation penalty decision has an enforcement period exceeding 10 days and the taxpayer fails to comply with the penalty decision within the specified timeframe, enforcement measures will be taken to enforce the tax violation penalty decision (except in cases where the enforcement of the tax violation penalty decision is postponed or temporarily suspended).

In addition, there are also some of the following violations:

• Credit institutions that fail to comply with administrative tax penalties as prescribed by the Law on Tax Administration and the Law on Handling Administrative Violations;
• Organizations guaranteeing tax payments for taxpayers: If, after the prescribed 90-day deadline – calculated from the date of expiration of tax payment, penalties, and late payment interest as approved by the tax authority – the taxpayer has not paid the full amount into the state budget, the guarantor will be subject to enforcement measures in accordance with the Law on Tax Administration and the Law on Handling Administrative Violations;
• The State Treasury does not transfer funds from the account of the person subject to enforcement opened at the State Treasury to deposit into the state budget in accordance with the administrative penalty decision on tax violations issued by the tax authority;
• Organizations and individuals involved fail to comply with administrative penalty decisions regarding tax violations issued by competent authorities.

Enforcement measures that the Tax Authority will apply to taxpayers:

• Deducting money from accounts and freezing accounts of taxpayers subject to enforced execution of administrative decisions on tax management;
• Deducting a portion of salary or income;
• Stop customs clearance procedures for exported and imported goods;
• Stop using invoices;
• Seize assets, auction off seized assets;
• Collect money and other assets of taxpayers that are being held by other agencies, organizations, or individuals under enforcement action;
• Revocation of business registration certificates, business licenses, cooperative registration certificates, investment registration certificates, establishment and operation licenses, and professional practice licenses.

In cases where a decision to enforce the subsequent measure has been issued, but there is information and conditions to implement the previous enforcement measure, the person who issued the enforcement decision has the right to decide to terminate the ongoing enforcement measure and issue a decision to implement the previous enforcement measure to ensure the full collection of taxes, fines, and late payment penalties.