Taxman wants overseas-travel ban on tax debtors clarified

11-Nov-2017 Intellasia | The Saigon Times | 6:00 AM Print This Post

The general Department of Taxation has proposed the government make clear a regulation that bans individuals who owe tax debts from travelling overseas.

Article 53 of the Law on Tax Administration specifies that Vietnamese people who settle down in a foreign nation permanently, and overseas Vietnamese and foreigners who exit Vietnam must fulfill their tax obligations before they leave the nation.

Immigration officers will disallow those having tax arrears to exit Vietnam when it gets notices from tax agencies, according to the law.

The general Department of Taxation said in a draft document to be submitted to the government that the regulation has made it difficult for the taxman to prevent company bosses who suspend business operations but fail to pay taxes from leaving the country.

In some cases, company owners have filed lawsuits against tax agencies while tax agencies have not had a strong legal basis, thus losing these cases. Therefore, the department has suggested the government amend Article 53 of the Law on Tax Administration in a way that states individuals are subject to travel bans. In particular, those who have failed to fulfill their tax obligations are prohibited from leaving the nation.

They are owners of private enterprises, and one-member limited liability companies, chairs of boards, legal representatives of limited liability companies with two or more members, boards of joint-stock companies, members of partnerships, and management heads of cooperatives who cease their operations without going through dissolution or bankruptcy procedures in line with the prevailing regulations.

The department said the proposal is aimed at coping with huge tax arrears.


Category: Economy, Vietnam

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