Minister Dinh Tien Dung: Strictly handle violations of tax and invoices

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Minister Dinh Tien Dung answered questions of National Assembly Deputies on October 31st, 2018.

Deputy Bui Thu Hang (Hoa Binh) expressed: Recently, although the Ministry of Finance has introduced many measures to manage invoices, doing business without VAT invoice is still very common and does not have positive changes, which reduces the transparency and fair competition in the market.

In addition, consumers may be subject to loss by lack of legal binding between sellers and buyers. The State will be subject to tax loss. Deputy Bui Thu Hang asked Minister Dinh Tien Dung how to overcome the above situation in the coming time.

Putting a question to the Minister, Deputy Quach The Tan (Hoa Binh) is concerned about the management of land use by state owned enterprises before and after equitization.

He stated that the management of land before and after equitization by state enterprises still revealed shortcomings of not calculating or insufficiently calculating the value of land use rights upon enterprise valuation for equitization. This has led to the loss of State capital and properties. On the other hand, the problems related to land have affected the progress and results of SOE equitization. "The Minister is required to tell the solutions to overcome the above shortcomings," said Quach The Tan.

Answering the question from Deputy Bui Thu Hang, Minister Dinh Tien Dung asserted: Through inspection and examination, there were not only companies issuing invoices but also individuals establishing companies to trade invoices and withdraw tax refunds from the State.

Currently, there is a legal corridor of Decree No. 51/2010 on invoices and goods supply and Decree 109/2013 on sanctions for administrative violations in the management of prices, charges, fees and invoices. Recently, the Ministry of Finance has also proposed the Government for issuance of Decree No. 119/2018 on electronic invoices used for sale of goods or supply of services.

In fact, the Ministry of Finance has synchronously applied many solutions such as tax declaration, payment, tax refund and electronic invoices. Enterprises and investors had a sense of observance of tax laws, invoicing sales and tax declaration and payment, but there was still the situation of non-invoicing sales. "We have discovered many cases and coordinated with the competent authorities, especially the public security to strictly handle violations," said Minister Dinh Tien Dung.

To overcome this situation, according to the Minister, in addition to the inspection and examination, it is necessary to implement Decree 119 well on electronic invoices; At the same time, there will be amendments to the Tax Administration Law, which will be submitted to the National Assembly for consideration in this meeting session.

"In fact, Vietnam's economy is using too much cash. The Ministry of Finance will also coordinate with the State Bank of Vietnam and other agencies to strengthen measures to promote non-cash payment; further enhance the inspection and examination and strictly handle violations of tax and invoices,” Mr. Dung emphasized.

For the question from Deputy Quach The Tan (Hoa Binh), Minister Dinh Tien Dung said that the valuation of land use rights of equitized enterprises was to comply with the provisions of the land law in each period.

Accordingly, before 2011, there was a provision that the annual land lease payment must include the geographical value into enterprise value. From 2011 up to now, according to the provisions of the Land Law 2013, the land lease fees have been closer to the market and included into the enterprise value, and enterprises have to pay to the State budget the difference.

"The strict management and use of land after equitization in each locality, belongs to the responsibility of provincial People's Committee," said Minister Dinh Tien Dung.

In fact, some enterprises after equitization have taken advantage of the State's land management policy, such as the relocation of a polluting establishment out of the urban area for conversion of land use purposes without recovery and auction of land use rights in accordance with the provisions of the Land Law. Accordingly, Minister Dinh Tien Dung said that the Ministry of Finance has submitted the Government Decree 126/2017 / ND-CP on the transfer of state-owned enterprises and one-member limited liability companies of which 100% chartered capital are owned by state-owned enterprises into joint stock Companies, which was effective from January 1st, 2018.

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Accordingly, the land use plan of the equitized enterprises must be considered and approved by the competent state agency before the time of equitization decision and after the equitization. The joint stock companies must manage and use the land in accordance with the approved plan.