Winning the Thu Thiem land auction but not paying will be handled?

At the end of 2021, at the auction of some land lots in Thu Thiem New Urban Area, Dream Republic Joint Stock Company won the auction of land lot number 3-5 (area of ​​6,446 square meters).²). This enterprise has to pay 3,820 billion dong of land use fee and 500 million dong of registration fee.

Sheen Mega Joint Stock Company won the auction of land lot 3-8 (area 8,568.1m)²), must pay 4,000 billion VND for land use.

According to regulations, within 30 days from January 6, 2022 – the time the Tax Department of Ho Chi Minh City issues the notice of payment of land use levy, the winning enterprise must pay the registration fee and 50% of the land use fee. land; within 90 days from January 6, the auction winning units shall pay 50% of the remaining land use fee. In case the enterprise is late in paying land use levy, the tax authority will impose a fine of 0.03%/day/amount of late payment.

Talking to reporters Newspapers Workers, an official in charge of the real estate sector of the Ho Chi Minh City Tax Department said that at the end of April 2022, Sheen Mega Joint Stock Company and Dream Republic Joint Stock Company promised to pay 100 billion out of more than 7,800 billion VND in land use fees. VND into the budget before April 30 to show determination to implement the project. However, so far, these two businesses have not done so.

On the other hand, the tax authority has sent a notice to the winning land auction of the land use levy payable to the state budget before May 6 because it has expired for 90 days. After this time limit, if Dream Republic Joint Stock Company and Sheen Mega Joint Stock Company have not yet paid, the tax authority may gradually apply coercive measures such as freezing accounts, stopping using invoices; revoke business registration certificates, business registration certificates…

The problem arises if the two businesses mentioned above do not have the financial capacity to pay the winning money at the Thu Thiem land auction, how do the competent authorities handle it?

From a legal perspective, MSc-Attorney Pham Duc (International Law Firm and Associates) said that in the case of two enterprises having insufficient financial capacity despite committing to pay and requesting late payment according to the notice of the agency, Mr. tax, they still violate the payment obligation of the auction winner in accordance with the law.

Specifically, according to Clause 2, Article 48 of the Law on Property Auctions, the auction winner is obliged to fully pay the auctioned asset purchase price to the person having the auctioned asset as agreed in the purchase and sale contract or in accordance with relevant laws.

If they violate, then based on point d, Clause 5, Article 68 of Decree No. 43/2014/ND-CP dated May 15, 2014 of the Government (amended and supplemented according to the provisions of Clause 21, Article 1 of Decree No. 148/2020/ND-CP dated December 18, 2020 of the Government) guiding handling.

Specifically, in case the auction winner fails to pay money or fails to pay enough money according to the land use right auction plan, the People’s Committee of the competent authority shall cancel the decision on recognition of the winning result of the land use right auction according to regulations. under the law.

Thus, in case the land auction plan of the People’s Committee of Ho Chi Minh City stipulates that the time limit for payment is not more than 180 days from the date of signing the purchase and sale contract, and when this time limit is over, the two land auction winners are the Land Auction Company. If Dream Republic shares and Sheen Mega Joint Stock Company have not been paid or not paid enough, the People’s Committee of Ho Chi Minh City has the right to cancel the decision to recognize the winning results of the land auction,” said lawyer Pham Duc.

However, according to this lawyer, if the land auction plan of the Ho Chi Minh City People’s Committee does not specify a specific time limit for paying land use fees or there is no other agreement, this is a very important omission of the agency. submit the auction plan for approval by the People’s Committee of Ho Chi Minh City and then it will be difficult for the parties involved to solve this problem, because the law requires the agency developing the auction plan to have binding criteria. payment to the auction winner.

On the other hand, according to Article 39 of the Law on Property Auction, it stipulates the handling of the deposit that the two enterprises have paid before participating in the auction. Accordingly, businesses will not receive the deposit back and the money will be paid by the auction center to the state budget, after deducting auction costs.

According to the Tax Department of Ho Chi Minh City, based on the contract signed between the two winning businesses of Thu Thiem land auction with the People’s Committee of Ho Chi Minh City with a maximum term of 180 days; At the latest on July 6, if Dream Republic Joint Stock Company and Sheen Mega Joint Stock Company do not pay the land use fee, they will not receive the deposit back, ie “lost deposit”.

According to Thy Tho