In response to a series of articles by VietNamNet about the temporary travel ban for legal representatives of companies with outstanding tax debts, many readers agreed that stringent measures are necessary for businesses that intentionally evade paying taxes. However, some expressed frustration with the policy when leaders are banned from traveling over small debts ranging from VND 1 to 10 million.

Many critics argue that the enforcement of travel bans related to tax recovery is sometimes inflexible and mechanical.

Reader Pham Doan Chung shared his experience, explaining that while serving as a state-appointed representative in a company awaiting bankruptcy, he faced tax enforcement actions, including invoice seizures and account freezes, due to the company's tax debts.

Before he assumed the role of chairman of the board and legal representative, the relevant authorities had submitted a report outlining the company's situation and the responsibilities of incoming personnel. Despite this, Chung still received a travel ban from the tax authorities.

Another reader, TVP, noted that while recent years have seen a slew of laws and government decrees aimed at tightening tax management, the current policy of banning individuals with outstanding tax debts from leaving the country is, in principle, a fair deterrent.

However, TVP pointed out that, from a procedural standpoint, the policy could be improved. He suggested that before requesting a travel ban, tax authorities should be required to send written notices to the company at least three times. If the company fails to respond, only then should the tax office be allowed to request a ban.

"While some tax authorities follow the proper procedures, others may skip steps. There have been instances where business leaders only found out about the travel ban when they attempted to leave the country," TVP speculated.

A strict but necessary approach?

On the other hand, reader Ngan Thuy had a different perspective. Thuy argued that the electronic tax system (thuedientu) is updated regularly, with only minor delays of one or two days. Companies and individuals receive notifications via email and through the tax office's online portal.

"If a company doesn't check its updates and gets penalized, they call it rigid enforcement. But tax authorities are following the law. Debts don’t appear out of nowhere - if a company is unsure about its tax liability, they should contact the tax office for assistance. Ignorance of the law isn’t an excuse, and if tax officers don’t enforce the law, they can face disciplinary action," Thuy explained.

Reader B.T added: "If a CEO only finds out about tax debts when they get to the airport, that's poor management. How can a company leader not know whether their company owes taxes? If it’s personal tax debt, the company's accounting department should have managed it better."

Suggestions for improvement  

Offering solutions to the issue, reader Tran Nguyen Ha proposed reviewing the threshold for tax debt before imposing a travel ban. For instance, if a company pays billions of VND in taxes annually but has an overdue payment of just a few million dong, there’s no real risk of tax evasion, and a travel ban shouldn’t be necessary.

Reader JJ Nguyen suggested differentiating between large and small tax debts, with a clear threshold above which a travel ban can be imposed. He also recommended publicly announcing cases of deliberate tax evasion in the media, which could help improve tax collection efforts.

Another reader (84985159xxx) proposed: 

1. Tax authorities should notify individuals subject to a travel ban, or at least post such information on a website, allowing individuals to check using their national ID cards.

2. Police authorities should also publish the list of individuals with travel bans on a public website, where it can be accessed using a passport or ID card number. This should include official documentation from the requesting agency, such as tax authorities, courts, customs offices, etc., so that individuals can resolve the issue before purchasing round-trip tickets.

The reader lamented that, currently, many only discover their travel ban at the airport, after tickets and accommodations have already been purchased. This results in economic loss and the collapse of business plans, including missed meetings with foreign partners.

Hanh Nguyen