A construction company based in the Mekong Delta city of Can Tho has filed a lawsuit against the local tax office saying the latter has unlawfully made a demand of over VND17 billion (US$751,000) in overdue land rent and fines.
720 Joint-stock Company decided to proceed against the city tax office after it deducted the money from its bank account and froze it last month, news website Dan Tri said, citing the company’s counsel, Nguyen Truong Thanh.
The company has been refusing to pay the money since 2010 when the tax office unilaterally increased the land rent from VND316 million ($13,900) a year to nearly VND1.6 billion ($70,700).
But an agreement the company had signed with the city natural resources department in 2005 said the rent would stay unchanged for 10 years.
When the tax office first demanded the new rent, the company complained to the Can Tho People's Committee.
In 2013 the committee rejected the company's complaint, but its decision was overturned by the city People's Court two years later.
Regardless of the court's verdict, the tax office has appropriated the company’s money, which has caused it a lot of difficulties and pushed it to the verge of bankruptcy, the lawyer said.