Joint Circular No. 06/TTLN guiding the handling of tax evasion offenses

CIRCULAR JOINT CIRCULAR

GUIDELINES FOR HANDLING TAX EVASION CRIMES

________

In order to effectively combat tax evasion behaviors, prevent tax revenue losses, and ensure state budget revenues, the Supreme People's Procuratorate, the Supreme People's Court, and the Ministry of Interior have jointly issued guidelines for handling tax evasion crimes as follows:

1- According to Clause 1, Article 169 of the Penal Code, a person who evades taxes in large amounts or who has been administratively sanctioned but still commits such acts is considered guilty of tax evasion.

The subjects committing the crime of tax evasion may be:

- Individuals with business registration or without business registration; - Persons from private organizations, state-owned enterprises, state agencies, or other organizations who have initiated or directly carried out tax evasion.

2- A person who evades taxes in an amount less than 50 million VND, and has not been administratively sanctioned for tax evasion behavior, is not considered guilty of tax evasion. In this case, administrative sanctions must be applied.

A person who evades taxes in an amount less than 50 million VND, but has been administratively sanctioned for tax evasion behavior or has been convicted but not yet had their criminal record expunged for the crime of tax evasion or for any of the offenses stipulated in Articles 96a, 97, 165, 166, 167, 168, 173, and 183 of the Penal Code, is considered guilty of tax evasion and shall be criminally prosecuted under Clause 1, Article 169 of the Penal Code.

3- A person who evades taxes in an amount from 50 million VND to less than 150 million VND is considered to have evaded taxes in large amounts and shall be criminally prosecuted under Clause 1, Article 169 of the Penal Code.

4- A person who evades taxes in an amount of 150 million VND or more is considered guilty of tax evasion in very large amounts and shall be criminally prosecuted under Clause 2, Article 169 of the Penal Code.

5- A person who evades taxes in an amount from 50 million VND to less than 150 million VND, if already convicted but not yet had their criminal record expunged for the crime of tax evasion or for any of the offenses stipulated in Articles 96a, 97, 165, 166, 167, 168, 173, and 183 of the Penal Code, shall be criminally prosecuted under Clause 2, Article 169 of the Penal Code.

6- In cases where tax evasion is accompanied by other criminal acts related to tax evasion such as bribery, obstructing public officials in the performance of their duties, etc., it is considered a particularly serious offense and shall be criminally prosecuted under Clause 2, Article 169 of the Penal Code; in addition, they will also be criminally prosecuted for corresponding offenses according to the provisions of the Penal Code.

State-owned enterprise or state agency personnel who commit the crime of tax evasion and also engage in related criminal acts involving the tax amount that should have been paid (appropriation, misuse contrary to economic management principles and regulations...) are considered to have committed a particularly serious offense and shall be criminally prosecuted under Clause 2, Article 169 of the Penal Code; in addition, they will also be criminally prosecuted for corresponding offenses according to the provisions of the Penal Code.

This Circular takes effect from the date of issuance and replaces Point 4 of Circular No. 11/TTLN dated November 20, 1990, issued by the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Interior, and the Ministry of Justice.

For tax evasion acts committed before the issuance of this Circular, if the investigation, prosecution, and trial have not yet concluded, or if investigations, prosecutions, and first-instance or appellate trials commence after the issuance of this Circular, this Circular shall be applied for investigation, prosecution, and trial.

For judgments that have taken legal effect before the issuance of this Circular and cases that have been tried in accordance with the guidelines set forth in Point 4 of Circular No. 11/TTLN dated November 20, 1990, this Circular’s guidelines shall not be applied to file cassation appeals.

During the implementation of this Circular, if any issues arise, investigative, prosecutorial, and judicial organs must immediately report to the Ministry of Interior, the Supreme People's Procuratorate, and the Supreme People's Court for timely guidance.