The enforcement of BOT tax debts of National Highway 2

The General Department of Taxation (Ministry of Finance) has issued a document on enforcement of corporate income tax with BOT National Highway 2 JSC.

Accordingly, this agency leads a series of current regulations on debt freezing, but BOT Highway No. 2 JSC does not fall under the case of extension of tax payment as prescribed.

“In cases where BOT Highway 2 Joint-Stock Company owes corporate income tax and late payment of more than 90 days, the tax authority shall apply tax-suspension measures strictly according to regulations. To request the company to fully pay tax debts and late payment into the state budget, “the document requested by the General Department of Taxation.

The project has been identified by the State Audit of many violations of the project.

In this regard, Mr. Trinh Huy Toan, Director of BOT Highway 2 Joint Stock Company, said the corporate income tax in 2017 company applied for delayed payment approximately 2 billion. However, according to Mr. Toan, not the company owes tax but just postponed to recalculate the BOT contract with MOT and the new contract tax obligations are expected to sign in July.

Accordingly, after auditing the project (announced March -2017), the State Audit has proposed reducing the 10-year charging period compared to the contract signed with the Ministry of Transport. Due to the decrease of the fee schedule, the depreciation plan of the project must be recalculated and the investor must negotiate the renewal of the BOT contract with the Ministry of Transport. Therefore, the company filed for late tax payment in 2017.

 The renovation and upgrading of Noi Bai – Vinh Yen (Noi Bai – Vinh Phuc) National Highway 2 will be implemented in the form of BOT, put into use in 2009, with a total investment of over 772 billion. Payback time is to 2025.

Previously, this project was shortlisted by the State Audit. Specifically, many times change the total adjustment of investment; The distance of two toll stations does not guarantee the distance of at least 70 km as prescribed; Insufficient and inadequate financial planning increases the cost of investment, extends the payback period of 5 years 8 months as the contract …

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