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