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Tycoons getting more famous because of unpaid tax
A lot of the big names in the fields of real estate and automobile have been mentioned in the General Department of Taxation’s report, as the state’s debtors because they have not paid tax.
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| The gloomy real estate market has made investors suffer |
The debtors - who are they?
The list of the debtors includes many conglomerates including Hoang Anh Gia Lai, the Hanoi Construction Corporation and Thanh Cong Group.
Trinh Hoang Co, Director of the Debt Management and Tax Coercive Department, pointed out at a taxation department’s conference on March 1, that a lot of enterprises do not pay tax because they try to use the sums of money as working capital.
The problem is that the sales have been going very slowly, while banks have tightened their lending, thus making it impossible for businesses to borrow money from banks. This has prompted businesses to deliberately delay all kinds of payment to have more capital to run their production.
Also according to Co, the sum of tax owed by the group of businesses alone now accounts for 72.3 percent of the total unpaid tax, of which the debts overdue by more than 90 days account for 63.3 percent. The noteworthy thing is that some businesses have had the unpaid tax sums of up to tens of billions of dong, and even well known brands in the market also have unpaid tax.
The businesses include Cavico, Phu Yen Brewery, and Vinashin, the shipbuilding group which has experienced a restructure with the debt of over 86 trillion dong.
The list of the big tycoons who have not paid tax also includes the big cheeses in the real estate sector. Especially, the General Department of Taxation “exposed Hoang Anh Gia Lai Group to shame at the conference.” The owner of Hoang Anh Gia Lai is a famous name – Doan Nguyen Duc, the second richest 2011’s Vietnamese stock millionaire.
Though the ministry declined to reveal the exact number of the unpaid tax, it implied that the sum has reached hundreds of billions of dong.
Also according to the taxation department, private businesses have the unpaid tax higher than foreign invested enterprises and state owned enterprises, accounting for 53.8 percent of the unpaid tax.
In many cases, enterprises have been slow in paying tax not because they deliberately delay the payment, while the delay has been blamed on the slow disbursement in the projects funded by the State. As the enterprises have not got paid from the State for their works, they do not have money to pay tax.
Taxation bodies powerless
Though the taxation body decided to make public, the names of the tycoons which have not paid tax. The names do not worry about tax collectors because they understand that they will be able to collect the debts.
Duc stated on VnExpress right after the conference that he only has not paid tax, while he does not intend to repudiate his debts.
What most worries the taxation bodies is that they may fail to collect tax from the “bogus” businesses. These businesses have never had operation in reality, and they were set up just to have the right to buy invoices. After completing their missions, the businesses have vanished into the air. Meanwhile, many other businesses have dissolved after they took big loss, and the taxation bodies do not know how to trace them.
The big problem now is that the amount of unpaid tax owed by the group of businesses is really high, which accounts for 56.7 percent of the debts considered as “irrecoverable.”
Deputy Minister of Finance Do Hoang Anh Tuan has pointed out that the taxation bodies have discovered the signs of the loss in the tax collection in six important sectors, including the foreign invested enterprises through the transfer pricing.
Pham Huyen
vietnamnet
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