The Can Tho Tax Department has announced that, following a cassation decision by the Council of Judges of the Supreme People’s Court, on June 13, 2024, the Ho Chi Minh City High-Level People’s Court ruled to reject all claims made by Joint Stock Company 720 (Company 720) regarding land lease payments. The company’s claims pertained to decisions made by the Can Tho Tax Department, which were found to be in compliance with legal regulations.
According to the case details, prior to January 1, 2006, Company 720 leased land from the Can Tho People’s Committee as per Decision No. 1650/QD-UB dated May 18, 2005, and Land Lease Contract No. 195/HDTD dated September 8, 2005. As the land was leased before January 1, 2006, and the company was making annual lease payments without a clause stipulating adjustments to the land lease price, the lease price was subject to adjustment from January 1, 2006, onwards, according to Government Decree No. 142/ND-CP dated November 14, 2005 (amended and supplemented by Decree No. 121/2010/ND-CP dated December 30, 2010). Based on Decree 142, the Can Tho Tax Department reassessed and issued a notification of land lease payments due by Company 720, applying the price adjustment principles stipulated in Decrees 142 and 121.
Can Tho Tax Department to Collect Over VND 25 Billion in Tax Arrears from Joint Stock Company 720
Disagreeing with the adjusted land tax decisions, Company 720 filed administrative lawsuits against the Can Tho Tax Department in 2016 and 2017. At both the first instance (Can Tho People’s Court) and appellate levels (Ho Chi Minh City High-Level People’s Court), the courts ruled in favor of the company’s claims.
However, the Can Tho Tax Department disagreed with the court rulings and requested a cassation review. On December 19, 2023, the Council of Judges of the Supreme People’s Court decided to annul the appellate court ruling and ordered the Ho Chi Minh City High-Level People’s Court to retry the case.
At the appellate trial on June 13, 2024, the Ho Chi Minh City High-Level People’s Court accepted the appeal of the Can Tho Tax Department and rejected all claims made by Company 720 regarding land lease payments.
As per the ruling of the Ho Chi Minh City High-Level People’s Court, the Can Tho Tax Department will proceed with the necessary procedures to collect over VND 25 billion in tax arrears, fines, and late payment fees from Company 720, which will be returned to the state budget.
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