Business in trouble
Dat Quang - Quang Nam Urban Development Investment Joint Stock Company, which is involved in a lawsuit, was absent. Eleven other real estate companies with large tax debts were invited to attend the meeting with provincial leaders on resolving difficulties in tax debt collection.
The difficulties businesses raised at the meeting were mainly the inability to clear land, the frozen real estate market, and the lack of liquidity for businesses.
Localities organized land auctions but there were no buyers, businesses could not access loans because project progress was not extended...
Mr. Tran Dang Khoa - Deputy Director of An Duong Construction, Trade and Service Company Limited said that the biggest difficulty for real estate projects is that many projects have the first phase of land allocation decisions and have approved land price plans; many projects have paid land use fees since 2020, but have not yet been granted land use right certificates (LURCs). The situation of land not being continuous or complete in the allocated area is fragmented, making it difficult to issue certificates by block.
An Duong's recommendations revolve around the main issues of the project. That is, granting land use right certificates in blocks for projects that have completed financial obligations, and removing difficulties for projects that have not completed financial obligations.
In addition, it is possible to allow businesses to adjust local planning at infrastructure locations, complete land allocation procedures early, and approve specific land price plans early...
“The enterprise has worked with banks to borrow capital. However, according to the bank's requirements, the condition for borrowing capital is to have a land use right certificate according to the block. Therefore, the projects have cleared the land, built more than 80% of the infrastructure, and are eligible for acceptance. Please ask the Provincial People's Committee to create conditions for the enterprise to complete the procedures for granting the block certificate, so that the enterprise is eligible to borrow capital and fulfill its state financial obligations in 2024" - Mr. Khoa said.
Director of Quang Nam Tax Department Nguyen Van Tiep admitted that the difficulties of real estate businesses, especially the businesses at this meeting, are basically the same. All of them are facing difficulties and have large tax debts.
The government and management agencies need to find ways to resolve the issue, from "granting certificates", land valuation, adjusting or dividing investment periods, creating conditions for businesses to access bank capital, in order to be able to collect this debt into the state budget.
Find ways to clear real estate
According to statistics from the provincial Tax Department, the outstanding land use fee debt of real estate projects is currently about 1,600 billion VND, accounting for 60% of the total tax debt. The 11 enterprises present at this meeting alone have reached 1,250 billion VND.
Mr. Nguyen Van Tiep said that businesses with debts have been forced to pay their invoices. The tax authority shares the difficulties of businesses, but if they do not pay their debts to the state budget in time, they will have to continue to take the next enforcement steps such as forcibly seizing assets, collecting from third parties and revoking business licenses.
"I hope businesses are determined to find effective solutions to pay money into the state budget, avoid coercive steps, and not let businesses be pushed into a difficult situation," Mr. Tiep said.
The viewpoint of the Provincial People's Committee and provincial leaders is to create the most favorable conditions for businesses to maintain their operations, but they must comply with the law and fulfill their financial obligations to the state budget. However, the recommendations of businesses, from adjusting investment policies, dividing investment periods, granting certificates according to periods or adjusting planning are very difficult to implement because the law does not allow it.
Vice Chairman of the Provincial People's Committee Tran Nam Hung said that there was no need to discuss proposals for project investment phases or adjustments because the projects were wrong from the beginning, or that it was not possible to simply adjust the project if desired. That was a legal matter.
For the real estate market to flow smoothly, first of all, businesses must comply with the law and fully perform their responsibilities and obligations to the state budget.
Vice Chairman of the Provincial People's Committee Tran Nam Hung said that supporting enterprises is the responsibility of the government and management agencies. Accordingly, the Department of Natural Resources and Environment is assigned to study and advise the Provincial People's Committee to report to the Party Committee of the Provincial People's Committee, and submit to the Standing Committee of the Provincial Party Committee for consideration in the direction of projects that have completed at least 80% of infrastructure, synchronous, inter-residential, inter-regional, not "leopard skin", and will determine to grant block certificates from 50 - 70% for the completed project part. When enterprises have paid for site clearance, local authorities must be responsible for detailing and planning the site clearance progress, and handing over clean land to enterprises to increase revenue for the budget.
Departments, branches and localities can study and propose to the Provincial People's Committee to agree on the adjustment policy for each specific project based on convincing arguments on the necessity of adjustment on the basis of the Law on Planning. As for extending the investment progress for the project, it is mandatory to complete tax obligations and deposit before the extension can be considered.
It is difficult to see the results of the state budget collection in just one meeting. However, many enterprises such as Nhat Long Real Estate Project Investment and Construction Company Limited, VN Da Thanh Group Joint Stock Company, and 591 Construction and Trading Joint Stock Company committed right at the meeting to complete this tax debt by the end of 2024.
A major shareholder - another representative of An Duong Construction, Trade and Service Company Limited (with 8 subsidiaries attending the meeting with a total debt of up to 1,050 billion VND) said that when restructuring the enterprise and project, the bank supported it on the condition that it had a block book.
If the block is released quickly, the bank will be able to borrow money to pay off all of this tax debt. Otherwise, the maximum amount of debt that can be paid is about 250 billion VND. If the business can be "liberated" to complete in 2024, there will be many opportunities for 2025.
According to the representative of An Duong, when issuing a block book, the enterprise will not be able to sell, but will have the conditions to borrow capital from the bank to pay off the debt. The state budget will not be lost but the debt from the enterprise will also be recovered.
Source: https://baoquangnam.vn/quang-nam-thao-go-kho-khan-cho-doanh-nghiep-bat-dong-san-de-thu-hoi-no-thue-3140254.html
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