Circular No. 120/2004/TT-BTC guiding the implementation of certain provisions of Government Decree No. 185/2004/NĐ-CP dated November 4, 2004 on Administrative Sanctions for Violations in the Field of Accounting

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 185/2004/NĐ-CP dated November 4, 2004 of the Government on Administrative Sanctions for Violations in the Field of Accounting

regarding Administrative Sanctions for Violations in the Accounting Sector

Pursuant to the Accounting Law dated June 17, 2003;

Pursuant to Ordinance No. 44/2002/PL-UBTVQH10 dated July 2, 2002 on Handling Administrative Violations and Decree No. 134/2003/NĐ-CP dated November 14, 2003 of the Government detailing and guiding the implementation of certain provisions of Ordinance No. 44/2002/PL-UBTVQH10 dated July 2, 2002;

Pursuant to Decree No. 185/2004/NĐ-CP dated November 4, 2004 of the Government on Administrative Sanctions for Violations in the Accounting Sector;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance issues guidelines for implementing certain provisions of Decree No. 185/2004/NĐ-CP dated November 4, 2004 of the Government on Administrative Sanctions for Violations in the Field of Accounting, as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope and Applicability

1.1. The scope and applicability of this Circular are individuals, agencies, organizations (hereinafter referred to as individuals, organizations) within Vietnam and from abroad operating in Vietnam who intentionally or negligently violate accounting laws and regulations that are not criminal offenses under Decree No. 185/2004/NĐ-CP dated November 4, 2004 of the Government on Administrative Sanctions for Violations in the Field of Accounting (hereinafter referred to as Decree No. 185/2004/NĐ-CP).

1.2. Individuals subject to this Circular include: Accountants, accounting practitioners, and other persons related to accounting in the state accounting sector and business activities.

1.3. Agencies and organizations subject to this Circular include:

a) State agencies, public service units, organizations using state budget funds, and public service units, organizations not using state budget funds as specified in Article 2 of Decree No. 128/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law in the field of state accounting;

b) Organizations engaged in business activities as specified in Article 2 of Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law in business operations.

2. Principles for Administrative Sanctions in the Field of Accounting

2.1. All administrative violations in the field of accounting must be promptly detected and immediately halted. Administrative violation handling must be conducted swiftly, fairly, and thoroughly; consequences caused by administrative violations must be remedied according to the law.

2.2. Individuals and organizations shall only be subject to administrative sanctions in the field of accounting when they commit acts violating the provisions from Article 7 to Article 16 of Chapter II of Decree No. 185/2004/NĐ-CP and Section 1 Part I of this Circular.

2.3. Administrative sanctions must be imposed by authorized persons in accordance with the law.

2.4. An administrative violation in the field of accounting shall only be subject to administrative punishment once. If multiple people jointly commit an administrative violation, each violator shall be punished. If a person commits multiple administrative violations, they shall be punished for each individual violation.

2.5. Administrative sanctions must be based on the nature, severity of the violation, the background of the violator, and mitigating or aggravating circumstances to determine the form and amount of fines, apply supplementary sanctions, and appropriate measures to remedy consequences. Specific fine amounts for an administrative violation are determined according to Article 5 and Articles 7 to 16 of Chapter II of Decree No. 185/2004/NĐ-CP and guided in Part II of this Circular.

2.6. No administrative sanctions in the field of accounting shall be imposed in the following cases:

a) Exceeding the time limit for imposing administrative sanctions as stipulated in Clause 1, Clause 2 of Article 3 of Decree No. 185/2004/NĐ-CP.

b) Administrative violations indicating criminal offenses, including:

- Administrative violations in the field of accounting indicating criminal offenses that have been transferred to competent investigative authorities for resolution;

- Administrative violations in the field of accounting indicating criminal offenses that are currently being examined and resolved by investigative authorities;

- Administrative violations in the field of accounting indicating criminal offenses where investigative authorities have issued a request to transfer files for criminal prosecution.

II. FORMS AND AMOUNTS OF ADMINISTRATIVE SANCTIONS

Based on the provisions of Article 5, Article 6 of Chapter I and Articles 7 to 16 of Chapter II of Decree No. 185/2004/NĐ-CP, forms and amounts of administrative sanctions are specified as follows:

1. Forms and Amounts of Fines for Violations of Accounting Vouchers Regulations

1.1. For a violation of Clause 1 of Article 7 of Decree No. 185/2004/NĐ-CP without aggravating or mitigating circumstances, the specific fine amount is 600,000 VND.

- In case of one or two mitigating circumstances, the fine amount is 500,000 VND;

- In case of three or more mitigating circumstances, the fine amount is 200,000 VND;

- In case of one or two aggravating circumstances, the fine amount is 800,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 1,000,000 VND;

1.2. For a violation of Clause 2 of Article 7 of Decree No. 185/2004/NĐ-CP without aggravating or mitigating circumstances, the specific fine amount is 3,000,000 VND.

- In case of one or two mitigating circumstances, the fine amount is 2,000,000 VND;

- In case of three or more mitigating circumstances, the fine amount is 1,000,000 VND;

- In case of one or two aggravating circumstances, the fine amount is 4,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 5,000,000 VND;

1.3. For a violation of Clause 3 of Article 7 of Decree No. 185/2004/NĐ-CP without aggravating or mitigating circumstances, the specific fine amount is 12,500,000 VND.

- In case of one or two mitigating circumstances, the fine amount is 10,000,000 VND;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In case of one or two aggravating circumstances, the fine amount is 17,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 20,000,000 VND;

2. Forms and Amounts of Fines for Violations of Accounting Ledger Regulations

2.1. For a violation of Clause 1 of Article 8 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 1,100,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 700,000;

- In case of three or more mitigating circumstances, the fine amount is 200,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 1,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 2,000,000;

2.2. For a violation of Clause 2 of Article 8 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 3,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 3,000,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 2,000,000;

- In case of one or two aggravating circumstances, the fine amount is 4,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 5,000,000 VND;

2.3. For a violation of Clause 3 of Article 8 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,000,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

2.4. For a violation of Clause 4 of Article 8 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 15,000,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 13,000,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 10,000,000;

- In case of one or two aggravating circumstances, the fine amount is 17,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 20,000,000 VND;

3. Forms and amounts of fines for violations concerning accounting accounts

3.1. For a violation of Clause 1 of Article 9 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 3,000,000.

- In case of one or two mitigating circumstances, the fine amount is 2,000,000 VND;

- In case of three or more mitigating circumstances, the fine amount is 1,000,000 VND;

- In case of one or two aggravating circumstances, the fine amount is 4,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 5,000,000 VND;

3.2. For a violation of Clause 2 of Article 9 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

4. Forms and amounts of fines for violations concerning financial reporting and public disclosure of financial reports

4.1. For a violation of Clause 1 of Article 10 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

4.2. For a violation of Clause 2 of Article 10 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 15,000,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 13,000,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 10,000,000;

- In case of one or two aggravating circumstances, the fine amount is 17,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 20,000,000 VND;

5. Forms and amounts of fines for violations concerning accounting inspection

For a violation of Article 11 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

6. Forms and amounts of fines for violations concerning the preservation and storage of accounting documents

6.1. For a violation of Clause 1 of Article 12 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 3,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 3,000,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 2,000,000;

- In case of one or two aggravating circumstances, the fine amount is 4,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 5,000,000 VND;

6.2. For a violation of Clause 2 of Article 12 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

6.3. For a violation of Clause 3 of Article 12 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 15,000,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 13,000,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 10,000,000;

- In case of one or two aggravating circumstances, the fine amount is 17,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 20,000,000 VND;

7. Forms and amounts of fines for violations concerning asset inventory

7.1. For a violation of Clause 1 of Article 13 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 2,000,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 1,500,000;

- In case of three or more mitigating circumstances, the fine amount is 1,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 2,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 3,000,000;

7.2. For a violation of Clause 2 of Article 13 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 4,000,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 3,500,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 3,000,000;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 4,500,000;

- In case of three or more aggravating circumstances, the fine amount is 5,000,000 VND;

7.3. For a violation of Clause 3 of Article 13 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

8. Forms and amounts of fines for violations concerning the organization of accounting staff, allocation of accounting personnel, or hiring of accounting personnel

8.1. For a violation of Clause 1 of Article 14 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

8.2. For a violation of Clause 2 of Article 14 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 15,000,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 13,000,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 10,000,000;

- In case of one or two aggravating circumstances, the fine amount is 17,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 20,000,000 VND;

9. Forms and amounts of fines for violations concerning accounting practice

For a violation of Clause 1 of Article 15 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

10. Forms and amounts of fines for violations concerning the application of accounting standards, accounting systems, and other regulations

10.1. For a violation of Clause 1 of Article 16 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 7,500,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 6,500,000;

- In case of three or more mitigating circumstances, the fine amount is 5,000,000 VND;

- In cases where there is one or two aggravating circumstances, the fine amount is VND 8,500,000;

- In cases where there are three or more aggravating circumstances, the fine amount is VND 10,000,000;

10.2. For a violation of Clause 2 of Article 16 of Decree No. 185/2004/NĐ-CP, without aggravating or mitigating circumstances, the specific fine amount is VND 15,000,000.

- In cases where there is one or two mitigating circumstances, the fine amount is VND 13,000,000;

- In cases where there are three or more mitigating circumstances, the fine amount is VND 10,000,000;

- In case of one or two aggravating circumstances, the fine amount is 17,000,000 VND;

- In case of three or more aggravating circumstances, the fine amount is 20,000,000 VND;

11. Forms and deadlines for supplementary penalties: revocation of Accounting Practice Certificate

11.1. For a violation of the provisions set forth in points a and b of Clause 3, Article 7 and points a, b, and c of Clause 4, Article 8 of Decree No. 185/2004/NĐ-CP, without any aggravating or mitigating circumstances, the period for revoking the right to use the Accounting Practice Certificate or Auditor Certificate is nine months.

- In cases where there is one or two mitigating circumstances, the period for revoking the right is eight months;

- In cases where there are three or more mitigating circumstances, the period for revoking the right is six months;

- In cases where there is one or two aggravating circumstances, the period for revoking the right is ten months;

- In cases where there are three or more aggravating circumstances, the period for revoking the right is twelve months.

11.2. For a violation of the provisions set forth in point c, d, e, and g of Clause 3, Article 7, point d and đ of Clause 4, Article 8, and point e and g of Clause 1, Article 15 of Decree No. 185/2004/NĐ-CP, without any aggravating or mitigating circumstances, the period for revoking the right to use the Accounting Practice Certificate or Auditor Certificate is three months.

- In cases where there is one or two mitigating circumstances, the period for revoking the right is two months;

- In cases where there are three or more mitigating circumstances, the period for revoking the right is one month;

- In cases where there is one or two aggravating circumstances, the period for revoking the right is four months;

- In cases where there are three or more aggravating circumstances, the period for revoking the right is five months.

12. Administrative violations in the accounting field leading to tax evasion or tax fraud

12.1. When it is determined that administrative violations in the accounting field as stipulated in Articles from Article 7 to Article 16 of Decree No. 185/2004/NĐ-CP lead to tax evasion or tax fraud, the authority responsible for imposing administrative penalties in the accounting field must impose administrative penalties according to the provisions of Decree No. 185/2004/NĐ-CP and the guidance provided in this Circular, then immediately transfer the case file to the same-level tax authority for handling administrative violations in the tax field.

12.2. The following acts are considered administrative violations in the accounting field leading to tax evasion or tax fraud:

a) Leaving out accounting data from the accounting books or recording them incorrectly according to the accounting system regulations, thereby reducing the amount of tax payable or increasing the amount of tax refunded or tax exempted or reduced;

b) Altering, erasing accounting vouchers or accounting books with the aim of reducing the amount of tax payable or increasing the amount of tax refunded or tax exempted or reduced;

c) Using blank invoices or other false accounting vouchers with the aim of reducing the amount of tax payable or increasing the amount of tax refunded or tax exempted or reduced;

d) Destroying accounting vouchers or accounting books before the prescribed time limit with the aim of reducing the amount of tax payable or increasing the amount of tax refunded or tax exempted or reduced;

đ) Maintaining two sets of accounting books for the same accounting entity but with different contents recorded, with the aim of reducing the amount of tax payable or increasing the amount of tax refunded or tax exempted or reduced.

III. PROCEDURES FOR IMPOSING PENALTIES AND ENFORCING DECISIONS ON PENALTIES

Based on the provisions of Articles 23, 24, and 25 of Chapter III of Decree No. 185/2004/NĐ-CP, the procedures for imposing penalties and enforcing penalty decisions are specified as follows:

1. Procedures for issuing a warning penalty

A warning penalty is applied to individuals or organizations with minor administrative violations for the first time, with many mitigating circumstances. For a warning penalty, the authority responsible for imposing penalties does not issue a Violation Record but issues a penalty decision on the spot.

2. Issuing a Violation Record in the Accounting Field

The authority responsible for imposing administrative penalties in the accounting field, while performing their duties, when discovering administrative violations in the accounting field, must promptly issue a Violation Record in the Accounting Field, except in cases of warning penalties as stipulated in Section 1 of Part III of this Circular. The model of the record is specified in Appendix No. 01.

The record must be made in at least two copies; it must be signed by the person making the record and the violator or representative of the violating organization. If there are witnesses, they must also sign the record. If the record consists of multiple pages, those signing the record must sign each page. If the violator or witness refuses to sign the record, the person making the record must clearly state the reason in the record; the individual or agency conducting the inspection or audit still implements recommendations and decisions in the record and bears responsibility under the law for those conclusions and recommendations.

Once completed, the record must be handed over to the violator or violating organization one copy. If the violation exceeds the penalty authority of the person making the record, they must send the record to the authority responsible for imposing penalties.

In cases where state management agencies such as the Finance Agency, Tax Authority, State Audit Office, etc., discover administrative violations in the accounting field but do not have the authority to issue penalty decisions, they must issue a Violation Record according to the provisions of this section and send the record to the authority responsible for issuing administrative penalty decisions as stipulated in Articles 18, 19, and 20 of Decree No. 185/2004/NĐ-CP.

3. Penalty Decision and Time Limit for Issuing the Decision

a) An administrative penalty decision in the accounting field must clearly state the violation, the form and amount of the fine, additional penalties, measures to rectify the consequences, and other contents according to the model specified in Appendix No. 02.

b) For simple cases where the violation is clear, the decision must be issued within no more than ten (10) days from the date of the record of the administrative violation. For cases with complex circumstances requiring clarification of the violator or other complex circumstances, the time limit for issuing the decision is thirty (30) days from the date of the record.

Beyond the aforementioned time limits, the authority responsible for imposing penalties may not issue a decision.

c) If the authority responsible for imposing penalties makes a mistake in exceeding the time limit without issuing a decision, depending on the degree of violation, they may be subject to disciplinary action, criminal prosecution, and if damage is caused, they must compensate according to the law.

d) When deciding to impose administrative penalties on a person who commits multiple violations, the authority with the power to impose penalties shall issue only one penalty decision in which it determines the form and level of penalty for each violation; if the form of penalty is a fine, the levels of fines shall be aggregated into a total fine amount.

đ) The penalty decision shall be sent to the individual or organization being penalized and the agency collecting the fine within three (3) days from the date of issuing the penalty decision.

e) The administrative penalty decision issued by the authority with the power to impose penalties shall bear the seal of the authority of that person imposing the penalty.

g) For penalty decisions made by authorities with the power to impose penalties but without the direct authority to affix seals, the penalty decision shall bear the seal of the authority issuing the penalty decision at the top left corner of the decision, where the name of the penalizing authority and the number and code of the decision are recorded.

4. Payment of fines, time limit for payment of fines

4.1. Individuals and organizations subject to penalties must pay the fine into the State Budget Fund at the National Treasury Office specified in the penalty decision within ten (10) days from the date they receive the penalty decision, except in cases where the fine has been paid on the spot.

4.2. In cases where the penalty decision is issued in remote areas where travel is difficult, the authority issuing the penalty may collect the fine on the spot and deposit it into the National Treasury within seven (7) days.

5. Procedures for revoking the right to use the Accounting Practice Certificate or Auditor Certificate

5.1. When the violation committed by an individual requires the supplementary penalty of revoking the right to use the Accounting Practice Certificate or Auditor Certificate (referred to collectively as the Practice Certificate), this must be recorded in the penalty decision. The authority with the power to impose penalties may seize the Practice Certificate and must immediately notify the Ministry of Finance (Accounting System and Audit Department) in writing.

5.2. Upon expiration of the period for revoking the right to use the Practice Certificate as recorded in the penalty decision, the authority with the power to impose penalties must return the Practice Certificate to the individual whose right to use it was revoked.

6. Procedures for implementing measures to mitigate consequences: Seizure of accounting vouchers, accounting books

6.1. When the violation committed by an individual or organization requires the supplementary penalty of mitigating consequences through the seizure of accounting vouchers or accounting books, this must be recorded in the penalty decision. The authority with the power to impose penalties must clearly record in the violation report the names and quantities of seized accounting vouchers and books, and obtain signatures from the person seizing them, representatives of the penalized organization, and witnesses.

6.2. The authority with the power to impose penalties may seize the violating accounting vouchers and books to handle related impacts. Once the handling is complete, the authority responsible for handling must establish a destruction committee consisting of: the authority with the power to impose penalties, representatives of the violating unit, and witnesses.

7. Execution of administrative penalty decisions

The execution of administrative penalty decisions in the field of accounting is regulated as follows:

7.1. Individuals and organizations subject to penalties must execute the administrative penalty decision within ten (10) days from the date they receive the penalty decision, except where otherwise provided by law. After issuing the penalty decision, the authority with the power to impose penalties must deliver the decision to the penalized person or notify them to come and collect it. The date when the individual or organization subject to penalties receives the penalty decision is considered the date of delivery of the penalty decision.

7.2. If individuals or organizations subject to penalties do not voluntarily comply with the deadline set forth in point 7.1 above, they will be subject to compulsory enforcement.

8. Compulsory enforcement of administrative penalty decisions

8.1. Individuals or organizations subject to administrative penalties but fail to comply with the deadline set forth in point 4.1, Section 4, Part III of this Circular, and do not voluntarily comply with the penalty decision, shall be subject to compulsory enforcement through measures such as deducting from wages, income, or withholding money from bank accounts or financial institutions of the individuals or organizations.

Organizations or individuals paying wages or income, or banks, financial institutions, or credit organizations where individuals or organizations subject to penalties have accounts, shall be responsible for implementing the decision of the competent authority.

In cases where the account of the individual or organization subject to penalties does not have sufficient balance to cover the fine, once the account has a balance, the bank, financial institution, or credit organization must first remit the outstanding fine to the state budget before executing other transfer orders of the penalized entity.

8.2. Authority to issue compulsory enforcement decisions: The following persons have the authority to issue compulsory enforcement decisions and are responsible for organizing the enforcement of their own and subordinate penalty decisions:

a) Director of the Inspection Department of the Provincial Department of Finance, Director of the Inspection Department of the Ministry of Finance;

b) Chairpersons of People's Committees at all levels.

9. Suspension of execution of fine decisions

9.1. Individuals fined five hundred thousand dong (VND 500,000) or more may be granted suspension of execution of the penalty decision in cases of special economic difficulties and upon submission of a request confirmed by an organization or entity.

9.2. The period for suspending the execution of the fine decision shall not exceed three months from the date of the suspension decision.

9.3. The authority that issued the fine decision has the right to decide on the suspension of execution of that fine decision.

10. Transfer of case files of violations indicating criminal offenses for criminal prosecution

It is strictly prohibited to retain case files of violations indicating criminal offenses for administrative penalties.

In cases where an administrative penalty decision has already been issued but subsequently it is discovered that the violation indicates a criminal offense within the statute of limitations for criminal prosecution, the authority that issued the administrative penalty decision must revoke that decision and within three (3) days from the date of revocation, transfer the case file to the competent criminal investigation agency.

The criminal investigation agency receiving the case file shall be responsible for informing the transferring agency of the results of the handling.

IV. IMPLEMENTATION

1. This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Circular No. 89/2000/TT-BTC dated August 28, 2000 of the Ministry of Finance on guiding the implementation of Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government on Administrative Sanctions for Violations in the Field of Accounting.

2. Ministries, sectors, People's Committees, Departments of Finance, Taxation Bureaus of provinces and centrally governed cities are responsible for guiding agencies, organizations, and individuals to implement this Circular.

In case of difficulties during implementation, individuals and organizations are requested to report to the Ministry of Finance for prompt resolution./.