Ministry of Finance: 10 key petroleum enterprises owe thousands of billions in taxes

Among 34 petroleum stations, 10 enterprises owe taxes, many of which amount to thousands of billions of VND, according to the leader of the General Department of Taxation.

This information was stated by Mr. Mai Son, Deputy Director General of the General Department of Taxation ( Ministry of Finance ) at a press conference on the afternoon of January 19. Mr. Son said that most businesses owe environmental protection tax - an indirect tax that they calculate and pay themselves.

"Of the 34 units, 10 have tax debts. The General Department of Taxation is urging the collection of this debt," said Mr. Son.

For example, Xuyen Viet Oil Company owes more than 1,529 billion VND in taxes, of which nearly 1,250 billion VND is in environmental protection tax. Hai Ha Waterway Transport Company Limited owes 1,780 billion VND. Nam Song Hau Petroleum Investment and Trading Joint Stock Company owes more than 1,000 billion VND and must pay it off gradually.

The Government Inspectorate's conclusion in early January also showed that many key enterprises owed thousands of billions of VND in environmental protection tax, more than 6,320 billion VND by the end of October 2022.

Hai Ha Petro's gas station in Hanoi closed after the company had its gas business license revoked, January 13. Photo: Anh Minh — Hai Ha Petro's gas station in Hanoi closed after the company had its gas business license revoked, January 13. Photo: *Anh Minh*

According to regulations, the Tax Authority is responsible for checking and supervising the declaration of enterprises. In case of debt, the Tax Authority will urge and enforce to recover to the budget. Specifically, the Tax Authority will enforce the account when the debt arises from the 91st day onwards. Measures of enforcing invoices and prohibiting the legal representative from leaving the country, or seizing assets will be applied from the 121st day of tax debt arising.

Mr. Son said, local tax departments "fulfill their responsibilities according to tax management regulations" in debt collection from petroleum enterprises.

For example, the Thai Binh Provincial Tax Department enforced tax debt collection on Hai Ha Waterway Transport Company Limited (a business whose license was revoked by the Ministry of Industry and Trade on January 12), amounting to about VND 1,780 billion. Previously, the Nghe An Provincial Tax Department at the end of December 2023 requested the Immigration Department (Ministry of Public Security) to temporarily suspend the exit of Ms. Chu Thi Thanh, Chairwoman of Thien Minh Duc Group Joint Stock Company, due to a tax debt of nearly VND 1,000 billion.

However, the Deputy Director General of the General Department of Taxation admitted that tax debt collection is difficult because tax authorities do not know the cash flow of enterprises. Meanwhile, asset seizure is also difficult when enterprises have mortgaged or used assets as collateral for loans at banks.

To overcome this situation, the tax industry said it will build a database of business financial reports.

Deputy Minister of Finance Nguyen Duc Chi added that cash flow management is still proactively managed by businesses, while tax authorities are only responsible for supervision. "During the inspection process, businesses that violate cash flow management regulations will be handled according to regulations," Mr. Chi said.

According to the conclusion of the Government Inspectorate, localities with petroleum businesses with large tax debts are An Giang, Ben Tre, Ca Mau, Can Tho, Dong Nai, Hai Phong, Hau Giang...

At the same time, many petroleum key enterprises under-declared environmental protection tax by thousands of billions of dong. For example, Thien Minh Duc Group declared nearly 3,300 billion dong in tax in 3 years (2018-2021). In 2019, enterprises under-declared about 4,900 billion dong in environmental protection tax.

Phuong Dung

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