In a document recently sent to the Government Office regarding the land rental debt of the My Dinh National Sports Complex (the Complex), the Ministry of Finance said that the total tax debt of the complex by the end of November 2023 is VND 941.7 billion.
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| My Dinh National Sports Complex owes more than 940 billion VND in taxes |
Of which, land rent is 475.2 billion VND; corporate income tax is 7.2 billion VND; administrative fines are 974 million VND; late payment fees are 458.2 billion VND. At the end of last year, the Ministry of Culture, Sports and Tourism proposed to suspend the debt because the Complex was unable to pay.
Regarding the proposal to defer debt and not charge late payment fees, the Ministry of Finance said that according to the provisions of the Law on Tax Administration on cases of tax debt deferral, the Complex is not eligible for deferral of tax debt and not charge late payment fees. Therefore, the tax authority has no basis to defer debt and not charge late payment fees for the outstanding tax and land rent debts of the complex as proposed by the Ministry of Culture, Sports and Tourism.
Currently, the Complex is being forced to pay tax debts by deducting money from accounts and stopping the use of invoices, according to decisions of the Hanoi City Tax Department and the Nam Tu Liem District Tax Department.
The complex began construction in the first quarter of 2002, was inaugurated in September 2003 and is a public service unit under the Department of Sports and Physical Training. Before 2012, the complex lived on the state budget, receiving about 10 billion VND each year. Since 2012, the complex has been implemented by the Ministry of Culture, Sports and Tourism as a 100% financial autonomy mechanism. To generate revenue, the complex leases land and services here to have money to pay salaries for staff and maintain the project.
However, in 2018, the Government Inspectorate pointed out many violations at this Complex. According to the conclusion of the Government Inspectorate and the State Audit, the Complex arbitrarily leased the premises without auctioning and publicizing the prices. The unit also did not declare and pay land rent for short-term and long-term premises lease contracts.
By 2021, the Government Inspectorate will continue to announce the conclusion of a comprehensive inspection of compliance with legal regulations on land management and use and public assets at the complex. In the conclusion, the Government Inspectorate pointed out a series of serious violations, with the amount of violations reaching nearly 777 billion VND. Two cases of violations have been transferred to the investigation agency.
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