Why does the Nguyen Le import-export company intentionally delays to pay 7.2 billion VND of tax?

woods imported to Hai Phong port. Photo: T.Bình

According to Post Clearance Audit Customs Branch (Hai Phong Customs Department): Through review, study information and results of post-clearance audit of Nguyen Le Import-Export Trading Co., Ltd, the Customs authority confirmed that the Company declared and carried out customs clearance procedures for imported timber originating from Equatorial Guinea and enjoyed the preferential import tax rate of 0%.

However, in accordance with provisions in Paragraph 3 Article 5 of the Law on Export Tax and Import Tax; Decision No. 36/2016 / QD-TTg of the Prime Minister stipulates the application of ordinary tax rates to imported goods; Official Letter No. 622 / BTM-PC dated 26/01/2007 of Ministry of Trade (now is Ministry of Industry and Trade); Document No. 1244 / BCT-DB of Ministry of Industry and Trade dated 09/02/2018 on the most favored nation in trade relations with Vietnam; Official Letter No. 1060 / TCHQ-TXNK of the General Department of Vietnam Customs dated 27/2/2018 on the Republic of Equatorial Guinea's absence of most favored nation and special privileges in trade relationship with Vietnam.

Thus imported goods originating from Equatorial Guinea are subject to the normal import tax rate of 5% and Hai Phong Customs Department has issued a tax assessment decision with the amount of tax mentioned above.

Representatives of Hai Phong Post Clearance Audit Customs Branch said that after issuing the tax assessment decision, the unit has taken many measures to urgently recover debts such as issuing many official notices: Urging the company to pay tax ; inviting legal representatives of the company to come to the headquarters of the Customs authority to work and discuss on the discharge of duty to pay taxes, exchange documents with state management agencies ...

However, legal representatives of the Company did not come, failed to respond and failed to fulfill their tax obligations. On the other hand, the company's written request for reduction of import tax rates and extension of tax payment time as prescribed by law is no basis for implementation.

Remarkably, according to Hai Phong Post Clearance Audit Customs Branch, beside the case such as Nguyen Le Import Export Trading Company Limited, other enterprises such as Thang Long Timber Joint Stock Company, Dai Loi Joint Stock Company, Vietnam Forestry Corporation, New Wood Co., Ltd,. ... have complied well with the payment of the fixed tax amount with late payments to the budget totaling over 30 billion VND.