Dissolution of businesses with long-term tax and insurance debts

VTV.vn - New regulations in the draft Bankruptcy Law (amended) will help terminate operations and liquidate businesses and cooperatives with long-term tax and insurance debts that no longer exist.

On the morning of October 23, continuing the 10th Session, the National Assembly listened to the presentation on the Bankruptcy Law Project (amended).

Presenting the report, Mr. Le Minh Tri - Chief Justice of the Supreme People's Court said that the draft Bankruptcy Law (amended) has completed bankruptcy procedures in a flexible, fast and effective manner.

The Law has added the subjects that are obliged to submit applications for bankruptcy procedures, accordingly stipulating that tax authorities and insurance agencies are obliged to submit applications for bankruptcy procedures in 3 cases.

One is when the enterprise or cooperative owes tax or insurance and the tax authority has notified the taxpayer that the taxpayer is not operating at the registered address; Two is when the social insurance agency notifies the taxpayer of the social insurance debt but there is no response in the last 3 consecutive years; Three is when the representative cannot be identified.

According to Mr. Tri, this regulation will help to terminate the operations and liquidate enterprises and cooperatives that have long-term tax and insurance debts, no longer exist, and are actually operating but cannot withdraw from the market because no one has filed a request to apply bankruptcy procedures.

This contributes to reducing management and monitoring pressure of State management agencies, improving the business environment, and making the economy healthier.

Chief Justice of the Supreme People's Court Le Minh Tri presents the draft Bankruptcy Law (amended)

This draft Law also adds a provision that after opening bankruptcy proceedings, if a contract is discovered to be potentially disadvantageous to the enterprise or cooperative, the court will consider and decide to suspend the performance of that contract, except in cases of handling secured debts and other cases as prescribed by law.

Mr. Le Minh Tri said that the Bankruptcy Law project (amended) completes bankruptcy procedures in a flexible, fast and effective manner.

Specifically, shortening the time to carry out procedures in bankruptcy settlement such as: Inventory of assets of enterprises and cooperatives, current law stipulates is 30 days and can be extended by 30 days, the draft Law shortens the time limit for inventory of assets of enterprises and cooperatives to 15 days and the extension is also 15 days; the time limit for sending debt collection papers is shortened from 30 days to 15 days; making a list of creditors is shortened from 15 days to 7 days,...

Will advance bankruptcy costs for enterprises and cooperatives

According to Mr. Tri, the practice of resolving bankruptcy of enterprises and cooperatives shows that one of the biggest bottlenecks leading to the stagnation of cases is the issue of advance payment of bankruptcy costs, payment of bankruptcy costs in cases where there is no need to pay advance payment of bankruptcy costs or the enterprise or cooperative has no more money or assets to pay or the enterprise or cooperative has assets but cannot sell them to secure bankruptcy costs, there are still different opinions.

The first view holds that, the provision for advance payment of bankruptcy costs and the source of payment of bankruptcy costs in the above case are guaranteed by the State budget. The funds for payment of bankruptcy costs in this case are arranged in the annual State budget estimate of the court.

The budgeting, management, use, advance payment and payment of expenses shall be carried out in accordance with the provisions of the law on the State budget and the law on litigation costs. The advance payment for bankruptcy costs in this case shall be immediately refunded to the State budget upon the sale of the assets of the enterprise or cooperative.

The second view is that the advance payment of bankruptcy costs and the source of payment for bankruptcy costs in the above case are guaranteed through the Small and Medium Enterprise Development Fund as prescribed by the Law on Support for Small and Medium Enterprises and other Funds as prescribed by law with content supporting enterprises.

According to the proposal in the draft Bankruptcy Law (amended), the State Budget will advance bankruptcy costs for enterprises and cooperatives.

Mr. Tri said that the Supreme People's Court agreed and expressed the draft Law according to the first point of view because it is consistent with the State's policy on supporting enterprises and cooperatives facing difficulties in business to carry out recovery and bankruptcy procedures to restore or terminate business activities in an orderly manner, contributing to improving the investment and business environment and making the economy healthier.

"If we keep the current regulations, we will not be able to remove the bottlenecks of bankruptcy law in resolving current bankruptcy cases, contributing to ensuring a healthy business environment," Mr. Tri said.

At the same time, if payment from the Small and Medium Enterprise Development Fund is only applicable to small and medium enterprises, it is not comprehensive.

Enterprises and cooperatives, in the process of production and business, have made certain financial contributions to the State and social security, so when they encounter financial difficulties and have to go bankrupt, it is appropriate for the State to provide advance support for bankruptcy costs when the enterprises and cooperatives have not yet sold their assets.

Examining this content, Mr. Phan Van Mai - Chairman of the Economic - Financial Committee said that the majority of Committee members agreed with the regulations on funding for bankruptcy costs as proposed by the submitting agency.

Accordingly, the fund for paying bankruptcy costs is arranged in the annual State budget estimate of the court in cases where there is no need to pay bankruptcy costs in advance or the enterprise or cooperative has no more money or assets to pay or has assets but cannot sell them to secure bankruptcy costs.

"The estimation, management, use, advance payment and payment of expenses are carried out in accordance with the provisions of the law on the State budget and the law on litigation costs. The advance payment for bankruptcy costs in this case will be immediately refunded to the State budget when the assets of the enterprise or cooperative are sold," Mr. Mai stated.

Source: https://vtv.vn/khai-tu-doanh-nghiep-no-thue-no-bao-hiem-keo-dai-100251023102147795.htm