Department suspends operation of ten enterprises
Department suspends operation of ten enterprises
Some 10 companies have had their business operations permanently suspended after they ignored orders to bring their business licences to customs authorities for tax payment purposes.
The suspension of business operations was made on May 20 by the Vientiane Industry and Commerce Department under the Ministry of Industry and Commerce.
These companies ignored the directive to bring their business licences to customs authorities at the Ministry of Finance for tax payment purposes and show their payment receipts to the licensing authorities after being warned to do so.
The companies involved include HTL Land and House Development, registered for business licence No. 0101; FPON Global Trading Co., Ltd licence No. 2350; Thisada Real Estate Co., Ltd licence No.0184; Somchan Architect, Road and Bridge Construction and Development Co., Ltd licence No. 0277; and Buasy Construction Co., Ltd licence No.0002.
TK Agriculture Promotion, Import and Export Co., Ltd licence No. 0725; KPP Irrigation, Road and Bridge Construction Co., Ltd licence No.2438; Phoumy Road and Bridge Construction Co., Ltd licence No. 1868; Indochina Medicine Co., Ltd licence No. 1128; Thangdath Import and Export and Construction Co., Ltd licence No.2177.
According to the announcement, the suspended companies above are unable to run their business activities from May 25 and in case they contravene the regulations they will be punished according to the 2013 Amended Law on Enterprise.
Each company must bring back its original licences to the licensing authorities. If any person or individual takes the licence to use for business purposes they will be punished according to the law and they must be responsible for all their mistakes. The suspension of business operation is in accordance with the Amended Law on Enterprises issued on October 26, 2013, the Tax Law issued on October 20, 2011, and the announcement of temporary enterprise suspension for those which hadn't paid their tax, issued on November 29, 2014.
Vientiane Tax Department under the Ministry of Finance recently ordered some 504 businesses to give notice to the department as to whether they intend to continue their businesses, otherwise they will be suspended.
Beforehand, Vientiane Industry and Commerce Department suspended the operations of 91 enterprises for one month after they failed to pay their taxes.
These business units are mainly engaged in construction and road repair, import and export, real estate, and consulting operations.
In previous years, many companies have tried to avoid paying tax, which resulted in a budget shortfall for the government and the suspension of some expenditure plans.
The suspension of trading rights aims to force companies to recognise their responsibility to pay taxes as their contribution to socio-economic development.
