Illustrative image (Photo dautuchungkhoan.vn)Hanoi(VNA) – The Government Inspectorate of Vietnam has revealed that mismanagementin tax collection between 2012 and 2014 caused mounting arrears and losses oftrillions of dong to the State exchequer.
In an announcement published early last week, the Government Inspectorate saidthere were discrepancies in the inspection and post-inspection supervision oftax watchdogs, as well as in compliance to the established laws.
The taxwatchdogs were found to have applied differing punishments for the sameviolations, triggering unfair practices among businesses, the inspectorate said.
Inaddition to these, the Ministry of Finance and the General Department ofTaxation did not manage the collection of taxes properly, resulting in mountingarrears, from 55 trillion VND (2.4 billion USD) in 2012 to 68.9 trillion VND inmid-2014. It also failed to maintain a close watch on the tax obligations offirms.
Taxavoidance remained rampant and complicated, especially the illegal use ofbills, causing losses to the State budget.
The HanoiDepartment of Taxation was found to have been irresponsible in its taxmanagement, collection of tax arrears, especially land-use arrears, causingrising debts. The Government Inspectorate also said that the municipal taxwatchdog was found to have violated land and construction management rules,pointing out that many developers used land for a long time without payingfees. By the end of 2015, arrears for the use of land totalled more than 7trillion VND.
The Government Inspectorate has recommended a criminal probe into two cases.
The firstcase concerns the construction of Dai Thanh Complex in Ta Thanh Oai commune, Hanoi’sThanh Tri district.
“TheState management and the executors of the project have committed seriousviolations,” the inspection reported, adding that the developer, at the time ofthe inspection, had not paid land-use fees but had already started theconstruction in March 2012.
The Government Inspectorate also found signs of illegal land transaction in theproject and violation of rules during its construction.
Theproject including six apartment buildings at prices ranging from 11 million VNDto 15 million VND per square metre, developed by Lai Chau Construction PrivateEnterprise No 1, had been in operation for around four years.
The second case was the alleged illegal use of bills by 21 companies for taxdeclaration, deduction and refund with a total value of 822 billion VND. TheGovernment Inspectorate said that there were signs of tax evasion.-VNA
VNA
