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The Rolls-Royce importer in Vietnam is still delaying paying tax debts as committed. Illustrated photo

The corporation has not carried out its commitments

Early November, 2017, Regal Motor Cars Corporation signed a contract with Customs Department of Hai Phong to commit to fully paying their tax liability (nearly VND 9 billion) in November by no later than the end of December 2017. But as the deadline approaches, the Corporation has not paid tax debts as committed.

According to the reporter, on 29th August 2017, Hai Phong Customs Department issued Decision 3330 / QD-HQHP to impose tax of VND 7.35 billion on Regal Motor Cars Corporation and Notice 10958 / TB-HQHP on late payment amount of nearly VND 1.504 billion. The imposed tax was due to the re-determination of the Corporation’s imported goods taxable value.

After receiving the above decision and notice, on 20th September 2017, Regal Motor Cars, Corporation issued Official Letter 1909/2017 / CV-TXNK to Hai Phong Customs Department and General Department of Customs expressing their commitment to comply with the decision on tax assessment by Customs. However, the Corporation said that due to business difficulties, they proposed to pay a partial amount of tax debts and gradually pay the remaining.

"Regal Motor Cars Corporation has always strictly followed the law, but the imposed tax is a big amount (nearly VND 9 billion), especially in the context of when the Corporation’s revenue has seriously declined. Therefore, at this time, the Corporation is unable to fulfil their tax liability at once”. Specified in the written request of Regal Motor Cars Corporation.

It was known that after receiving the written request from Regal Motor Cars Corporation, the Customs authority permitted to let the enterprise gradually pay their tax debt.

The permission of the Customs is in accordance with provisions in Article 39 of Decree No. 83/2013 / ND-CP guiding the implementation of the Law on Tax Administration and the Law amending and supplementing some articles of Law on Tax Administration. The dossiers and the competence to settle for gradual payment of the enterprise’s tax debts are in line with Article 134 of the Ministry of Finance's Circular No. 38/2015 / TT-BTC.

Collaborating with banks to collect more than VND 1 billion of tax debts

Also regarding the handling of tax debts of car importers, Post Clearance Audit Branch (Hai Phong Customs Department) is also trying to urge Thanh Cong Automobile Joint Stock Company (Quang Ninh) to pay all tax debts of about VND 100 million.

Regarding this case, according to Hai Phong Post Clearance Audit Branch, through the review and study of information and results from post clearance audit for Thanh Cong Automobile Joint Stock Company (Quang Ninh), the Customs determined that the company made an inaccurate import declaration for special consumption tax on Ford F-150 five-seat pickup cars.

Specifically, the company declared the special consumption tax rate of 15% (for both passenger and cargo car). However, the certificate of quality, technical safety and environmental protection of imported motor vehicles issued by the Vietnam Register to the company revealed that the commodity was pickup cars, which are used to carry 5 people and do not determine the value of "volume of carriage by design and volume of carriage allowed to travel". According to the Branch, the special consumption tax rate must be exactly 60%.

Representative of Hai Phong Post Clearance Audit Branch said: after promulgating the decision on tax assessment, the Customs authority had taken many drastic measures to speed up the debt collection, such as issuing many official dispatches to inform and urge the company to pay tax; inviting legal representative of the Company to the Customs’s headquarters, and sending Customs officers to the company’s headquarters. However, the Company’s representative was absent and failed to pay tax.

Then, based on the provisions of the law, the Customs authority issued the coercive decision by deducting money from the Company's bank account. The Customs authority received the kind responses from banks, so far the banks (where the company have registered accounts) have deducted the money from the company’s accounts and transferred it to the account of the Customs authority at the State Treasury 3 times, and collected VND 136 billion of the total imposed tax of VND 1,236 billion.

Rolls Royce importer has committed to paying tax debts of nearly 9 billion VND

"Currently the company has a tax debt of about VND 100 million. The Customs authority is monitoring and urging the company to pay the taxes. In cases where the company still fails to pay the tax debts, the Customs authority shall carry out the coercive measures as described in Article 93 of the Law on Tax Administration," said by the representative of Hai Phong Post Clearance Audit Branch.