Several enterprises have been trying unsuccessfully to beg and urge tax agencies to block [tax] codes to complete dissolution procedures. They have little choice but wait and continue their lose-making business.
Brokers in need
Although his company has ended operations for several months, Mr Nguyen Van Hung, Director of B.S Joint Stock Company in Hung Yen province, does not know whether his company is legally bankrupt or not. Some months ago, he went to tax office to finalise procedures but they told him to wait.
Then, he continued urging them to complete quickly but the answer was always the same: “Please wait.” He only wanted his company to go bankrupt officially to seek a new way-out. However, his desire was not met.
“I have waited for months but they have not come. When I check the tax code, I see the status of taxpayer inactive, not closed,” Mr Hung said, fearing that his company will fall into legal trouble as its temporary operation suspension is pending.
Likewise, Mr Tran Van Trung, Director of Tan Hung Investment and Trade Joint Stock Company (Binh Chanh District, Ho Chi Minh City), is unable to have his company dissolved although he sent necessary documents to tax agencies for the ending in late 2011.
They received the papers and asked him to wait. “Now, they have returned the documents to me without any explanation for their act. I don’t care now,” Trung said.
Seeing the company go bankrupt is an extremely painful pain. But, to end its existence, it is necessary to go through intermediaries.
On April 5, Dai Hung Investment and Trade Development Joint Stock Company (Gia Lam District, Hanoi) registered for dissolution. Van Dao Trading, Import and Export Co., Ltd also made the same move because of poor business performances. However, the distance between notification and procedure completion is vast and lengthy. An accountant working for one of these companies said she had to run to and fro to complete tax procedures but she was not successful.
According to the laws, a company legally goes bankrupt when it bears no tax debts. Although her company settles all tax obligations, tax officer in charge demand all documents and books to be presented for examination. “It is not easy to be dissolved. Perhaps, we have to resort to brokers because they are on the same line” said the accountant.
Unable to go bankrupt in seven years
Dissolution is so tough. Bankruptcy is much tougher and more complex. WonderBuy, one of a few “brave” brands to declare bankruptcy last year, also ran aground here. This electronics retailer was out of business after suffering a loss of VND52 billion. In principle, if everything goes well, it will be declared bankruptcy by the court after 90 days from the date of filing bankruptcy document. However, after more than three months, its bankruptcy saga is standstill and indefinite.
Although its director is in prison, Vien Dong Pharmaceutical Joint Stock Company (DVD) has not been able to become bankrupt after nearly half a year it filed for bankruptcy because of unsettled procedure and liabilities.
One of the most famous bankruptcy sagas is possibly Q. Company (Ho Chi Minh City). The fertiliser company filed for bankruptcy in 2005 because it failed to pay debts of VND25 billion and US$258,000. However, to date, after seven years, it remains unsolved.
Creditors petitioned to court for its bankruptcy. Asset liquidation brought in mere VND2.8 billion. Three years later, its rented land was removed prematurely with a small value of assets on the land.
The company was supported VND1.5 billion for its losses from premature land revocation but the sublease company did not pay it and it was thus unable to pay bank loans. As a result, it is unable to become bankrupt although was inactive for seven years.
TN
Vietnamese
