How are Businesses Penalized for Contributing Capital in the Wrong Form?
Article 3 of Circular 09/2015/TT-BTC regulates the Payment Methods in Transactions of Capital Contribution and Sale, Transfer of Capital Contribution to Other Enterprises as follows:
Enterprises shall not use cash (paper money, metal money issued by the State Bank) for payment when conducting transactions of capital contribution and sale, transfer of capital contributions to other enterprises.
When conducting transactions of capital contribution and sale, transfer of capital contributions to other enterprises, enterprises use the following forms:
a) Payment by check;
b) Payment by authorization—money transfer;
c) Other suitable non-cash payment forms in accordance with current regulations.
Enterprises conducting transactions of capital contribution and sale, transfer of capital contributions to other enterprises by assets (not by money) shall comply with the regulations of enterprise law.
And according to Clauses 8 and 10, Article 26 of Decree 88/2019/ND-CP, a fine of 150,000,000 VND to 200,000,000 VND is imposed for violations of cash payment regulations.
Measures for remedial action:
- Compelled to submit the illicit gains into the state budget;- Not allowed to expand the scope, scale, and location of operations until the violation is completely remedied.
Therefore, when conducting transactions of capital contribution to another enterprise, enterprises are not allowed to use cash. Payment by cash is a violation of the payment method regulations. In this case, the enterprise may be fined from 150 to 200 million VND.
Respectfully!
