Increasing revenue by tax inspection

The total number of enterprises inspected by the tax office is 4,469, reaching 63.46% of the plan in 2017 and 97.02% over the same period of 2016. The total collection, retrievals, and fines are 7,809.1 billion, equal to 199.95% over the same period in 2016. The amount paid to the state budget is 6,170.5 billion, reaching 79% of the increased tax through inspection, equaling 318.18% over the same period in 2016.

The number of enterprises inspected is 54,671, reaching 65.51% of the plan in 2017, equal to 123.61% over the same period of 2016. The total collection, retrieval and fine are VND 4,120.2 billion, equal to 99, 64% compared with the same period in 2016. The amount paid to the state budget is VND2,201.1 billion, accounting for 53.4% of the tax increase through the inspection at enterprises and 89.56% over the same period in 2016.

Besides the inspection at enterprises, the tax office also checked 354,426 dossiers at the office, accounting for 60.41% over the same period in 2016. Thus, the enterprises must pay additional 150,54 billion VND to the budget, equal to 58.26% over the same period of 2016. By examination and review of tax declaration dossiers at the head office, tax agencies have detected errors and frauds of taxpayers to adjust the increase the tax declaration or impose a tax. Specifically: Inspector of General Department of Taxation has submitted to the leaders of the General Department to issue 41 decisions on inspection, examination, an increase of revenue and propose to pay 2,612.56 billion; reduced loss of 1,066.8 billion; deduction of VND55.86 billion; State budget has been paid 2,263.2 billion VND. Large 10 enterprises have (handled violations of 10 enterprises,) collected 1,685.93 billion, paid state budget 100% of collected.

The whole sector has inspected and checked after the VAT refund with a total of 4,644 decisions of tax refund before inspection. In particular, the number of tax refunds arising in 2017 has been inspected is 922 decisions, the decision of tax refunds before 2017 is 722 decisions. The total amount to be recovered, reimbursed and processed for administrative violations is 190 billion. Total amount paid to the state budget is 84.2 billion.

Parallel the inspection and examination activities, the urge to collect tax arrears has been actively implemented. Units in the sector focus on synthesizing tax debt classification, debt classification, determining the causes of rising debts, evaluating the results of the implementation of debt collection and debt enforcement. The General Department of Taxation shall urge the provincial/municipal Tax Department regularly to carry out measures to urge and coerce tax debts. Up to 31/8/2017, the whole sector has urged to collect 32,044 billion debt, reaching 65.7% of the tax debt on 31/12/2016, rising 13.3% over the same period of 2016.

The total tax debt on 31/8/2017 is 74,127 billion, compared with 31/12/2016 decreased 96 billion (0.1%); compared to 31/7/2017 decreased 810 billion (1.1%). Among them, the tax debt can be up to 90 days and over 90 days is 27,913 billion, accounting for 37.7% of total tax debt; fines for tax administration and late payment (0.03% per day) is VND 18,126 billion, accounting for 24.5% of total tax debt; Taxpayers who have died, lost, have lost their civil act capacity, are involved in criminal liability, have dissolved themselves, went bankrupt, stopped, took leave, and left their business address. VND 28,088 billion, accounting for 37.8% of the total tax debt.

Until 31/8/2017, the taxable is expected to decline sharply from 2016 (9.5%), the ratio of total non-performing loans to total domestic revenue is estimated at 4, 9%, compared to 3.8% of total state budget revenue. According to the General Department of Taxation, up to 62.3% of current tax debt is irrecoverable. The tax debt reduced slowly because the enterprises are having financial difficulties. They have overcome difficulties and haven't got cash flow to pay debts. There are some enterprises have been able to pay tax debts, which have been dealt by tax agencies for application of coercive measures. The rest of the businesses are meet financial difficulties, can not afford to pay a tax of 12 months only declare the excise tax, even many enterprises don’t have the property to pay tax. The tax authorities have applied to coercive measures.

The General Department of Taxation is implementing projects of against loss of household and non-state enterprises under the plan No. 1359 / QD-TCT dated 4/8/2017 on the promulgation of the anti-loss plan and reorganize the tax administration for business establishments. Accordingly, the General Department of Taxation has deployed the working delegation at a number of The tax departments of Hanoi and Ho Chi Minh city, to implement the plan; There are 3 working delegations approved with the aim at inspections for 10 businesses and 40 high-risk business households in the last 3 months of this year.