VCCI recommends that exit suspension should only be applied to particularly serious cases with large tax debts. Accordingly, it is proposed that individuals with tax debts of over 200 million and businesses with tax debts of 1 billion will be subject to exit suspension.
VCCI recommends that exit suspension should only be applied to particularly serious cases with large tax debts - Photo: NGOC PHUONG
Commenting on the draft decree guiding the Law on Tax Administration on the threshold for temporary suspension of exit, the Vietnam Confederation of Commerce and Industry (VCCI) proposed that the Ministry of Finance should raise the tax debt threshold and issue a decision to apply this measure.
Departure deferral should only be applied in cases of large tax debts.
VCCI said that many businesses reflected that the tax debt threshold to apply the exit suspension measure proposed by the Ministry of Finance of VND10 million for individuals and VND100 million for businesses is too low.
Currently, to enforce administrative decisions on tax management, tax authorities have many measures such as withdrawing money from bank accounts, notifying invoices that are no longer valid, seizing and auctioning assets, etc.
VCCI recommends that priority should be given to applying these measures, especially the measure of withdrawing money from bank accounts or other third parties, before considering measures to restrict people's right to travel.
A thorough withdrawal from a bank account will be effective in tax debt collection.
Measures such as declaring invoices invalid or banning exit should only be applied in particularly serious cases with large tax debts.
If the exit suspension measure is applied on a large scale, it could have a negative impact on production and business activities, cause general economic damage and reduce long-term budget revenue.
Therefore, VCCI proposed that the drafting agency consider raising the threshold for tax debt to apply the exit ban measure to 1 billion VND for enterprises and 200 million VND for individuals.
Concerns about tax authorities determining tax debt inaccurately
According to VCCI, determining that an individual business or business owner owes 10 million VND in taxes based on information stored internally at the tax authority is not yet an administrative decision for the people.
In fact, for many different reasons, there are many cases where information stored at tax authorities is incorrect, misleading or incomplete, leading to inaccurate determination of tax obligations.
Only when conducting tax inspections and examinations and making tax administrative decisions will this information be checked, compared and carefully considered according to a complete procedural order.
The result of this procedure is a tax administrative decision which shows the amount of tax owed and the debt term.
"Restricting people's right to travel (exit) is a rather serious measure. Therefore, this measure needs to be implemented according to stricter procedures, that is, there needs to be an administrative decision on tax management signed and issued by a competent person to avoid unnecessary confusion.
Therefore, the measure of temporary suspension of exit is only applied after there is an administrative decision on tax management" - VCCI recommended.
In the case of a business that is no longer operating and has not fulfilled its tax obligations, the legal representative will be temporarily suspended from leaving the country regardless of the value of the tax amount.
VCCI recommends that the drafting agency add a regulation on the threshold of the amount of tax owed in this case, for example 3 million VND - equal to the highest business license fee in a year. Because in reality, there are cases where the tax debt is very small, arising after the business has stopped operating (such as business license fees).
Source: https://tuoitre.vn/kien-nghi-hoan-xuat-canh-voi-ca-nhan-no-thue-tren-200-trieu-doanh-nghiep-no-1-ti-20241212225835284.htm
Comment (0)