Circular No. 114/1999/TT-BTC supplements Circular No. 128/TT-BTC guiding the accounting of recovered taxes, administrative penalty payments, and proceeds from the sale of confiscated goods according to the State budget classification. This document applies to tax authorities when conducting inspections and handling tax violations.
Scope of application
Tax authority
Key points
- The tax authority bases on the amount deposited into the temporary holding account to allocate bonuses to the inspection unit at the prescribed ratio, simultaneously issuing a transfer document for the bonus amount to be credited to the inspection unit's account.
- Recovered taxes from tax evasion and administrative penalties are accounted for in corresponding sections of the State budget classification: recovered taxes from tax evasion are deposited into Section 002, Subsection 02, Chapter 155C; administrative penalties for tax violations are deposited into Section 051, Subsection 04, Chapter 155C.
- A bonus of 5% is allocated from recovered taxes from tax evasion, with the remaining amount deposited into the state budget. A bonus of 30% is allocated from administrative penalties for tax violations, with the remaining amount also deposited into the state budget.
- This circular takes effect fifteen days after the date of issuance, abolishing any guidelines inconsistent with this circular.
- The tax authority must follow the procedures to deposit recovered taxes from tax evasion and administrative penalties for tax violations into the state budget according to the current State budget classification.
🌐 Social impact of this document
- Positive impact: Proper accounting increases revenue for the state budget and encourages tax authorities to detect and handle tax violations.
- Negative impact: It may impose financial burdens on enterprises that have to pay administrative penalties for tax violations.
❓ Frequently asked questions
Which agency implements the allocation of bonuses?
The tax authority bases on the amount deposited into the temporary holding account to allocate bonuses to the inspection unit at the prescribed ratio.
What is the bonus allocation ratio for recovered taxes from tax evasion?
For recovered taxes from tax evasion, the tax authority allocates a bonus of 5%.
To which section of the State budget classification is the administrative penalty payment for tax violations accounted?
Administrative penalties for tax violations are accounted for in Section 051, Subsection 04, Chapter 155C.
What is the effective period of this circular?
This circular takes effect fifteen days after the date of issuance.
If there are difficulties during implementation, which agency should be promptly informed?
The tax authority should promptly inform the Ministry of Finance for research and resolution.
Full text
CIRCULAR
Supplement Circular No. 128/TT-BTC dated September 22, 1998 guiding the implementation of Government Decree No. 22/CP dated April 17, 1996 on administrative penalties for violations in the tax sector.
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On the basis of Government Decree No. 22/CP dated April 17, 1996 on administrative penalties for violations in the tax sector; Decision No. 280 TC/QD-NSNN dated April 15, 1997 of the Minister of Finance on the budget classification system; Circular No. 156/1998/TT-BTC dated December 12, 1998 of the Ministry of Finance guiding, supplementing, and amending the budget classification system, the Ministry of Finance supplements Circular No. 128/TT-BTC dated September 22, 1998 to guide the accounting of recovered taxes from tax evasion, administrative penalty fines in the tax sector, and proceeds from the sale of confiscated goods according to the budget classification system as follows:
Based on the amount deposited into the temporary account according to the notification of the State Treasury and related files, the agency responsible for the temporary account pays any associated costs (if any), issues a decision to award bonuses to the inspection unit at the prescribed ratio, and prepares vouchers to send to the State Treasury where the temporary account was opened to transfer the bonus amount from the temporary account to the inspection unit's account. At the same time, immediately proceed with the procedures to deposit the remaining amount into the state budget: recovered taxes from tax evasion are deposited into the corresponding sub-item of each type of tax; administrative penalty fines in the tax sector are deposited into Sub-item 051; Proceeds from the sale of confiscated goods, items, and means of transportation are accounted for in Sub-item 052, Chapter, Type, Item, and Sub-sub-item according to the current budget classification system.
Example: The tax authority audits the final settlement of Company A Limited Liability Company for the year and discovers that it has evaded corporate income tax amounting to 10,000,000 VND (ten million dong).
This is an act of false declaration to evade corporate income tax, therefore, in addition to having to pay the full amount of evaded tax of 10,000,000 VND (ten million dong), it also incurs a fine equal to the amount of evaded tax, which is 10,000,000 VND (ten million dong) for the administrative violation in the tax sector.
The recovered tax and the fine are accounted for as follows:
|
- Bonus on the recovered tax: |
10,000,000 x 5% |
= |
0.5 million VND |
|
- Remaining recovered tax: |
10,000,000 - 0.5 million |
= |
9.5 million VND |
|
- Bonus on the fine: |
10,000,000 x 30% |
= |
3.0 million VND |
|
- Remaining fine: |
10.000.000 - 3.000.000 |
= |
7.0 million VND |
|
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The remaining recovered tax 9.5 million VND is deposited into Sub-item 002, Sub-sub-item 02, Chapter 155C, type, item corresponding. The remaining fine 7.0 million VND is deposited into Sub-item 051, Sub-sub-item 04, Chapter 155C, type 10, item 10. |
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This Circular takes effect fifteen days after the date of signature. Any guidance contrary to the provisions of this Circular shall be abolished. In the course of implementation, if there are any difficulties, please promptly report to the Ministry of Finance for study and resolution./.
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