Enforcement of tax arrears of VND 270 billion
The Ninh Thanh Regional Tax Department has issued a decision on the enforcement of administrative decision on tax management in the form of account deduction against the Joint Stock Company for Investment in Urban Development and Infrastructure (HUDIC) with a total amount of VND 270 billion.
The reason for the enforcement is because HUDIC has owed tax overdue for more than 90 days according to regulations.
The Joint Stock Company for Investment in Urban Development and Infrastructure (HUDIC) has been enforced by the Ninh Thanh Regional Tax Department (Hai Duong’s Tax Authority) by deducting money from the account in the amount of VND 270 billion. Photo: IT.
Accordingly, the Ninh Thanh Regional Tax Department has requested VietinBank, BIDV, and Vietcombank to deduct money from HUDIC’s account.
In case the amount in HUDIC’s account is less than the amount stated in the enforcement decision, the bank still has to deduct the remaining amount after subtracting the minimum balance to maintain the account and continue monitoring, and deduct any additional amount from the taxpayer’s account during the effective period of the decision.
It is known that HUDIC was formerly a state-owned enterprise, established in 1959. The company was transformed into a joint-stock company from a state-owned enterprise in 2004. Up to now, HUDIC has a charter capital of VND 135 billion, and its legal representative is Mr. Nguyen Van Truong (born in 1978).
Violation of land use fee exemption regulations
The Hai Duong Provincial Inspectorate previously issued Conclusion No. 212/KL-TTr on compliance with policies and laws in business production activities and fulfillment of obligations to the State within 3 years (2018, 2019, 2020) at HUDIC.
The Hai Duong Provincial Inspectorate determined that the Provincial Tax Department exempted land use fees for HUDIC, which did not comply with the applicable laws at the time of land use fee exemption, showing signs of violating the laws. Therefore, the Hai Duong Provincial Inspectorate transferred the information during the inspection to the Provincial Police and the Provincial People’s Procuracy to handle according to regulations.
According to the Inspection Conclusion, based on HUDIC’s reports on production and business activities for 3 years, the company’s total revenue and other income in 3 years were over VND 311 billion, and the total expenses in 3 years were nearly VND 309 billion. The total profit in 3 years was over VND 2.1 billion. HUDIC is the investor and executes the construction of the Social Housing Project in Ngo Quyen’s Eastern Residential Area.
Regarding housing management, the Inspectorate concluded that the unit needs to determine an increased annual fund to repair rented apartments. The company has not had a plan to reduce direct costs and indirect costs in managing state-owned houses in Hải Dương City.
In 2020, the company has not accounted for revenue to determine the taxable income for the completed acceptance of work transferred to households in the social housing project according to regulations, resulting in an underreported amount of corporate income tax due of about VND 11.4 million.
In addition, the company increased costs by over VND 1.43 billion. As a result, the company had an underreported amount of corporate income tax to be paid of nearly VND 270 million.
Regarding the Ngo Quyen Social Housing Project, Hai Duong City exceeded the stipulated brick usage limit with an amount (before tax) of over VND 321 million. After the inspection, the inspection team excluded the above cost, resulting in the company’s corporate income tax to be paid with an amount of over VND 32 million.
In addition, the Company did not comply with regulations in signing contracts with employees. The company has not deducted and paid personal income tax for individuals who receive annual stock dividend, with an underpaid amount of over VND 63.4 million.
Based on the regulations, the Chief Inspector of the province has issued a decision to recover the amount of irregularities found during the inspection process, with the recovered amount being nearly VND 397 million. The company has made the payment to the temporary hold account for processing by the Inspectorate.
The Provincial Inspectorate recommended that HUDIC adjust the revenue from the sale of social housing (in 2020) with an amount of nearly VND 29 billion, adjust the amount of value-added tax declared and deducted for goods purchased in 2018 and 2019 with an amount of over VND 104 million in accordance with regulations…
The Ninh Thanh Regional Tax Office in February 2024 also issued a decision on the enforcement of the administrative decision on tax management in the form of account deduction against the Viet Hung Urban Investment Joint Stock Company with a total amount of nearly VND 200 billion. The reason for the enforcement is that Viet Hung Urban Investment Joint Stock Company has owed tax overdue for more than 90 days according to regulations.
