Ha Tinh Tax Department has just sent a document to the General Department of Taxation asking for opinions on tax deduction and refund for late declared VAT invoices and documents of Hung Nghiep Formosa Ha Tinh Co., Ltd. (FHS).
According to the Ha Tinh tax authority, since the end of May 2016, the General Department of Taxation has issued a document on tax declaration, deduction, and tax refund for value-added invoices (VAT) declared late after the agency’s deadline.
On June 8, Ha Tinh Tax Department also issued a document requesting FHS to pay the previously refunded tax amount to the budget and adjust to reduce the tax amount deducted on the tax declaration but not yet refunded;
Having just filed a complaint with the tax authorities, FHS may be charged nearly 1,555 billion VND in arrears.
The total amount of VAT that FHS declared to be deducted and refunded late over a period of one and a half years (from June 2014 to December 2015) is nearly 1,555 billion VND.
According to the Ha Tinh Tax Department, the delay in declaration, deduction, and tax refund is mainly due to invoices and VAT payment documents at the import stage and input VAT invoices for project construction.
At the import stage.
With input VAT invoices during project construction, on average, Formosa Ha Tinh has nearly 3,000 invoices and documents per month, so during the month, FHS does not collect all the invoices generated for declaration.
“In both cases of delayed declaration, deduction, and tax refund mentioned above, at the time of tax authority inspection and tax refund inspection, the company has not yet accounted for expenses in the period, and has not compiled and presented invoices and documents.
Citing a series of legal provisions, this Department also asked for guidance from the General Department of Taxation on the collection of deduction adjustment amounts, refunds of VAT refunds, fines for late payment… for digitization.
2 months ago, FHS also had to collect about 5.5 billion VND in taxes (of which nearly 5 billion VND was import tax and over 498 million VND in VAT) due to incorrect declaration and application of HS codes for customers.
Besides the story of tax arrears, Formosa Ha Tinh also recently encountered a major scandal when the project’s illegal waste discharge activities were determined to be the cause of marine pollution incidents and mass seafood deaths in the area.
Mr. Minh
