Boosting Effectiveness in Tax Collection

 

Over the past time, the tax service has consistently promoted administrative reform to create favourable conditions for taxpayers and maintain steady support for businesses and taxpayers; applied information technology in work management to make taxpaying less time-consuming and more effective; strengthened inspection and examination to timely detect and handle cases of tax officers unreasonably creating difficulties for businesses, impeding the administrative reform.

 

Regarding inspection and examination, Hai Duong Tax Department has organised many inspections of businesses who show signs like expanding operation despite enduring consecutive years of losses or losses exceeding owner’s equity, and businesses suspected of transfer pricing. Implementing the 2014 regulations on coordination, the Provincial Tax Department has forwarded information on administrative violations of sales invoice and service providing of 19 organisations to the provincial People's Procuracy. This agency in turn has also informed and sent documents on the results of investigation, prosecution and trial of ten criminal and trafficking cases to tax authorities. The People's Procuracy also has sent notices to tax authorities about 12 companies and 10 individuals committing invoice illegal purchase but not to the extent of criminal prosecution to impose appropriate fine within authorization for administrative violations.

 

In terms of accelerating the implementation of online tax filing and payment, Hai Duong’s tax sector has reviewed the taxpayers who are businesses and business organisations; provided registration guidance to units who have yet to do online tax declaration and payment; collaborated with concerned departments and agencies, telecommunications services as well as local branches of commercial banks to provide businesses and business organisations the service of online tax payment. Chairmen of districts, towns and cities’ People’s Committees have directed concerned departments and agencies to coordinate with tax agencies of the same level in the implementation of online tax payment; widely propagated the new way of paying tax through Internet to local businesses. The Hai Duong branch of State Bank of Vietnam has directed commercial banks to closely coordinate with the Provincial Tax Department in the implementation of online tax, creating favourable conditions for businesses and business organisations in using this service.

 

According to figures, by the end of July, Hai Duong had 3,433 businesses out of total 5,832 who had registered online tax payment with the authorities, 67.5 percent of the total registration received in the General Department of Taxation. Of which, there were 2,866 businesses registering payment via commercial banks, 56.3 percent of the target assigned by the General Department of Taxation. However, so far, there have been only 766 enterprises who have followed through with payment with 1,892 successful transactions, about VND300 billion received into the budget. According to the target registered with the General Department of Taxation, Hai Duong still needs another 1,673 enterprises to finish tax payment. Also, the General Department of Taxation requested that by September 30, 2015, 90 percent of operating businesses in the province must register online tax payment to help reduce the time for tax declaration and payment to less than 121.5 hours/year. Thus, there remain a large number of enterprises who still have work to finish, which means huge efforts from all levels of authority continues to be needed.