Circular No. 128/1998/TT-BTC amending and supplementing Circular No. 45-TC/TCT dated August 1, 1996 guiding the implementation of Decree No. 22/CP dated April 17, 1996 of the Government on administrative penalties for violations in the field of taxation.

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
NUMBER: 128/1998/TT-BTC	HA NOI, SEPTEMBER 22, 1998

 

CIRCULAR

MINISTRY OF FINANCE DECREE NO. 128/1998/TT-BTC SEPTEMBER 22, 1998 AMENDING AND SUPPLEMENTING THE CIRCULAR NO. 45 TC/TCT AUGUST 1, 1996 GUIDING THE IMPLEMENTATION OF THE GOVERNMENTAL DECREE NO. 22/CP APRIL 17, 1996 ON ADMINISTRATIVE SANCTIONS FOR VIOLATIONS IN THE TAX FIELD

Pursuant to Decree No. 22/CP dated April 17, 1996 of the Government on administrative sanctions for violations in the tax field, the Ministry of Finance hereby provides detailed guidance as follows:

I. GENERAL PROVISIONS

1. An administrative violation in the tax field is an act committed by organizations or individuals who violate provisions of tax laws, tax ordinances, regulations on issuing sales invoices, opening and recording accounting books, regulations on fees and charges, and other current regulations on revenue collection for the State budget but not reaching the level of criminal prosecution, which must be subject to administrative sanctions.

2. The subjects of administrative sanctions in the tax field:

2.1) All Vietnamese organizations and individuals if they commit administrative violations in the tax field.

2.2) Foreign organizations and individuals if they commit administrative violations in the tax field. In cases where international treaties to which Vietnam is a party provide different provisions, such treaties shall be implemented.

3. Tax collection agencies as stipulated in Decree No. 22/CP dated April 17, 1996 include tax authorities and customs offices (for export duties, import duties, special consumption taxes, and value-added taxes at the import stage).

4. Principles of forms of administrative sanctions in the tax field:

4.1) The principle of imposing administrative sanctions in the tax field shall be carried out according to Article 3 of the Administrative Violation Handling Ordinance dated July 6, 1995.

4.2) Main forms of punishment:

- Warning.

- Fine.

In cases where a fine is applied to organizations or individuals committing multiple administrative violations in the tax field during a single discovery or inspection, each violation will be punished separately, then the fines will be aggregated.

In addition to applying one of the two main forms of punishment, depending on the nature and degree of the violation, organizations or individuals committing administrative violations in the tax field may also be subject to supplementary sanctions such as confiscation of objects or means used for the violation.

5. Circumstances reducing penalties when imposing administrative sanctions in the tax field:

Organizations or individuals committing administrative violations have taken measures to prevent or reduce the harmful effects of the violation or voluntarily rectified and compensated for damages.

6. Circumstances aggravating penalties when imposing administrative sanctions in the tax field:

6.1) Repeated offenses or multiple violations.

6.2) Exploiting positions, powers, or taking advantage of natural disasters, epidemics, or enemy actions to commit violations.

6.3) Committing violations while serving a penalty decision. 6.4) After committing a violation, engaging in acts to evade or conceal the violation.

7. Cases where administrative sanctions in the tax field are not imposed:

7.1) Expiry of the time limit for imposing administrative sanctions:

- The administrative violation in the tax field was discovered beyond the time limit for imposing sanctions as prescribed in Article 12 of Decree No. 22/CP (which is two years from the date the violation was discovered). For violations involving false declarations or tax evasion, the time limit for imposing sanctions is determined according to the relevant tax laws and ordinances.

- Beyond three months from the date of the decision to suspend investigation or terminate the case against an individual whose administrative violation in the tax field has been prosecuted, indicted, or brought to trial under criminal proceedings, and the investigative bodies decide to suspend the investigation or terminate the case.

Within the time limit for imposing sanctions, if an organization or individual commits new violations or intentionally evades or obstructs the imposition of sanctions, the above time limits will not apply, and all administrative violations in the tax field discovered will be subject to sanctions.

7.2) Administrative violations in the tax field that show signs of criminal offenses and have been transferred by the tax authority to competent authorities for resolution.

7.3) Individuals under the age of majority who commit administrative violations related to taxes will be handled according to Article 6 of the Administrative Violation Handling Ordinance dated July 6, 1995.

7.4) Individuals who commit administrative violations related to taxes while suffering from mental illness or other diseases that impair their ability to understand or control their behavior.

II. VIOLATIONS AND PENALTIES:

Based on the provisions of Articles 1, 2, 3, 4, and 5 of Chapter I of Decree No. 22/CP dated April 17, 1996 of the Government, the following are specific violations in the tax field, forms of punishment, and penalty amounts:

1. Violations concerning business registration procedures, tax payment registration, tax declaration, and bookkeeping, as well as retention of invoices and receipts related to tax calculation, collection, and payment.

1.1. A first-time violation is punishable by a warning; for a second-time violation, a fine ranging from VND 20,000 to VND 200,000. If there are aggravating circumstances, a fine up to VND 1,000,000 may be imposed for one of the following behaviors:

a) Violating the regulations on business registration; tax payment registration, and tax declaration to the tax authority beyond the deadlines set forth in current guiding documents for implementing tax laws, tax ordinances, fees, and other revenue payments to the State budget.

b) Failing to fill in all required items in tax declaration forms or in accounting documents provided to the tax authority.

1.2. A fine ranging from VND 40,000 to VND 200,000 for a first-time violation. For a second-time violation, a fine ranging from VND 600,000 to VND 1,000,000 may be imposed for one of the following behaviors:

- Not fully complying with the management and usage regulations for sales invoices as prescribed by the State.

- Failing to fully record the required elements according to the regulations of each invoice, receipt, and tax stamp model when selling goods or providing services to customers.

1.3. A fine ranging from VND 100,000 to VND 1,000,000 for a first-time violation; for a second-time violation, a fine ranging from VND 2,000,000 to VND 4,000,000 may be imposed, and if there is one aggravating circumstance, a fine up to VND 6,000,000 may be imposed, and if there are two or more aggravating circumstances, a fine up to VND 10,000,000 may be imposed for one of the following behaviors:

a) Failing to present accounting books, vouchers, and related documents upon request of the tax authority.

b) Failing to submit tax declaration forms and accounting reports to the tax collection agency within the time limit prescribed by current guiding documents on tax laws and laws on state budget revenues.

c) Not fully implementing or failing to implement the accounting system as stipulated by the Accounting and Statistics Ordinance.

d) Transporting goods without accompanying documents required for each business entity (purchase registers, vouchers, other valid documents). 1.4. A fine of from VND 1,000,000 to VND 10,000,000 for the first violation, if there is a second violation, a fine up to VND 13,000,000 may be imposed, and if there are aggravating circumstances, a fine up to VND 20,000,000 may be imposed for any of the following acts:

- Intentionally failing to submit tax declarations, accounting reports, and other documents to the tax collection agency as prescribed by law.

The intentional act is after the deadline for submitting the aforementioned documents, the tax collection agency sends the first notice requesting submission of these documents. If the entity still fails to submit the documents within ten days from the date of sending the first notice, the tax agency sends a second notice. If the entity still fails to submit the documents within ten days after receiving the second notice, the tax agency may impose fines as provided in this point.

- Selling goods without issuing invoices to customers as prescribed by the State.

- Individuals or organizations purchasing, using invoices or receipts that are not issued by the Ministry of Finance or not permitted for use.

- Losing or allowing others to misuse their invoices for illegal activities or tax evasion.

1.5. A fine of from VND 2,000,000 to VND 10,000,000 for the first violation; if there is a second violation, a fine up to VND 15,000,000 may be imposed, and if there is one aggravating circumstance, a fine up to VND 20,000,000 may be imposed for any of the following acts:

+ Destroying vouchers, registers, and accounting reports related to tax calculation and collection before the expiration of the retention period as prescribed.

+ Damaging vouchers, registers, and accounting reports related to tax calculation and collection to the extent that they cannot be restored (unreadable, unphotocopiable).

2. Acts of false declaration to evade taxes:

Organizations and individuals engaging in false declaration or tax evasion as prescribed in current Tax Laws and the Amended Mineral Resources Tax Ordinance, in addition to paying the full amount of taxes evaded, shall also be subject to fines according to the number of times prescribed by each Tax Law and the Amended Mineral Resources Tax Ordinance.

Organizations and individuals engaging in false declaration or tax evasion of other types of taxes besides those mentioned above must pay the full amount of taxes declared falsely or evaded and be fined according to the number of times taxes were declared falsely or evaded, but the maximum fine shall not exceed VND 100,000,000.

2.1. A fine equal to the amount of tax evaded, if there are aggravating circumstances (except in cases where the individual has already been punished for tax evasion and continues to violate), then a fine up to twice the amount of tax evaded may be imposed for any of the following acts:

a) Incorrectly declaring the basis for calculating tax as prescribed for each type of tax.

b) Maintaining accounting registers and invoices incorrectly with respect to actual transactions.

c) Excluding from the accounting records or improperly posting to accounts as prescribed, causing the basis for calculating tax to differ from actual transactions.

d) Requesting temporary suspension of business operations to reduce or exempt taxes but continuing to operate.

In cases where organizations or individuals commit violations as prescribed in Point 2.1, if discovered before the deadline for tax settlement or payment as prescribed by law, the penalties prescribed in Point 2.1 will not apply, but instead, the provisions of Clause 2, Article 2 of Decree No. 22/CP dated April 17, 1996, shall be applied.

2.2. A fine of twice the amount of tax evaded, if there are aggravating circumstances (except in cases where the individual has already been punished for tax evasion and continues to violate), then a fine up to three times the amount of tax evaded may be imposed for the following violation:

a) Goods transported without complete documentation proving that taxes have been paid or that the goods have been under tax control as prescribed for each business entity.

The violation described in this point shall only be considered as false declaration and tax evasion if, after inspection by the tax authority, there remain doubts and the violator is given a period to provide complete legitimate documentation proving that the goods have been taxed (for purchased or exchanged goods) or have been under tax control (for goods transferred within the same unit), but the violator still fails to provide complete legitimate documentation.

If the violator provides complete legitimate documentation within the period allowed by the tax authority, the competent tax authority can only issue a decision to impose a penalty according to Clause 2, Point b, Article 2 of Decree No. 22/CP dated April 17, 1996.

If the owner of the goods does not comply with the tax authority's decision or exceeds one day for perishable goods and five days for other goods from the date of the decision without paying the tax and fine to reclaim the goods, the tax authority transfers the case to the financial department at the same level or higher to establish a public auction committee to enforce the seizure of the detained goods.

b) Engaging in business without registering with the tax authority.

c) Counterfeiting sales invoices, revenue vouchers, tax receipts, cargo transportation vouchers, and other documents related to tax calculation.

2.3. For organizations and individuals engaged in production and trade in import and export, if they violate the provisions of Points 2.1 and 2.2 of Section II of this Circular, depending on the nature of the violation, a fine of two to five times the amount of tax evaded as prescribed by law may be imposed.

2.4. In cases of large-scale tax evasion or repeated administrative offenses of tax evasion, the tax collection agency shall transfer the case file to the People's Procuratorate at the same level to initiate criminal proceedings against the responsible party as prescribed by law.

3. Violations of the tax payment and fine collection system:

3.1. A fine of from VND 100,000 to VND 500,000 for the first violation; if there is a second violation, a fine of from VND 500,000 to VND 800,000 may be imposed, and if there is one aggravating circumstance, a fine up to VND 3,000,000 may be imposed, and if there are two or more aggravating circumstances, a fine up to VND 5,000,000 may be imposed for the following act:

- Not to accept tax collection notices, tax collection orders, administrative violation penalty decisions issued directly by the tax authority.

When tax collectors deliver tax payment notices, tax collection orders, or administrative violation penalty decisions regarding taxes directly to taxpayers or violators, if the parties refuse to accept them, the tax authority shall invite witnesses and establish an administrative violation record, clearly stating the reasons for the basis of the penalty.

3.2. A fine of from VND 200,000 to VND 500,000 for the first violation; for the second violation, a fine of from VND 500,000 to VND 1,000,000; if there is one aggravating circumstance, the fine may be up to VND 5,000,000; if there are two or more aggravating circumstances, the fine may be up to VND 10,000,000 for any of the following acts:

- Paying tax or fines late as recorded in the tax payment notice or in the tax violation handling decision issued by the tax authority.

Tax officials, organizations, or individuals entrusted with collecting taxes, bank officers, or officers of other credit institutions who fail to deposit tax payments into the State Treasury due to lack of responsibility will also be subject to late payment penalties under this provision.

When enterprises pay taxes through bank transfers or other credit institutions and there are sufficient balances in their accounts to cover the tax payments, but the bank or other credit institution delays transferring the tax payments from the enterprise's account to the State Treasury account, the bank or other credit institution will be subject to late payment penalties under this provision.

- Delaying tax payments or fines:

It is considered delaying tax payments or fines when the delay exceeds thirty days beyond the deadline specified in the tax payment notice or the administrative penalty decision.

3.3. Organizations or individuals violating the provisions at point 3.2, Section II of this Circular, in addition to being penalized according to the provisions at point 3.2, Section II mentioned above, will also be fined an additional 0.1% of the amount of the late payment for each day of delay.

4. Acts violating inspection regimes and sealing of goods:

4.1. A fine of from VND 100,000 to VND 400,000 for the first violation; for the second violation, a fine of from VND 500,000 to VND 1,000,000; if there is one aggravating circumstance, the fine may be up to VND 3,000,000; if there are two or more aggravating circumstances, the fine may be up to VND 5,000,000 for the following act:

Refusing to allow the tax authority to inspect goods in transit, warehouses, or raw materials at production sites.

4.2. A fine of from VND 200,000 to VND 500,000 for the first violation; for the second violation, a fine of from VND 600,000 to VND 1,200,000; if there is one or more aggravating circumstances, the fine may be up to VND 10,000,000 for the following act:

Unauthorizedly breaking seals on warehouses, raw material stores, machinery, or factories during the sealing period set by the tax authority.

III. AUTHORITY - PROCEDURES FOR ADMINISTRATIVE PENALTIES IN THE TAX FIELD

1. Authority to impose administrative penalties in the tax field:

1.1) Tax officials performing their duties have the authority to issue warnings and impose fines up to VND 100,000 for administrative violations in the tax field within their jurisdiction.

The head of a tax station or the team leader of a tax team has the authority to issue warnings and impose fines up to VND 200,000 for administrative violations in the tax field within their jurisdiction.

1.2) The Director of the Tax Revenue Office has the authority:

- To issue warnings and impose fines up to VND 2,000,000 for administrative violations in the tax field as stipulated in Articles 2, 4, and 5 of Decree No. 22/CP dated April 17, 1996 of the Government on administrative penalties in the tax field.

- To impose fines equal to the amount of evaded tax for the act of misreporting or evading tax.

- To confiscate property or means used in committing administrative violations in the tax field valued up to VND 10,000,000.

1.3) The Director of the Provincial Tax Department has the authority:

- To issue warnings and impose fines up to VND 20,000,000 for administrative violations in the tax field within their jurisdiction as stipulated in Articles 2, 4, and 5 of Decree No. 22/CP dated April 17, 1996 of the Government on administrative penalties in the tax field.

- To impose fines up to five times the amount of evaded tax for the act of misreporting or evading tax in accordance with the current Tax Law and Tax Ordinance.

- To confiscate property or means used in committing administrative violations in the tax field.

Tax collection agencies at all levels have the authority to impose administrative penalties for all violations in the tax field within their jurisdiction. If they find that a case exceeds their authority, they must transfer it to the competent authority for resolution. If the case does not fall within the jurisdiction of the tax department, the head of the tax agency must transfer the file to the competent authority for resolution, but must provide a written recommendation specifying the form and level of the penalty.

The leaders of tax teams established under Circular No. 64 TC/TCCB dated October 29, 1992 of the Ministry of Finance have the same authority to impose administrative penalties in the tax field as the leaders of tax stations according to Clause 1, Article 7 of Decree No. 22/CP dated April 17, 1996.

Other agencies such as Market Management, Public Security, Border Guard, Forest Protection, and specialized state inspection agencies, while performing their functions, if they discover administrative violations in the tax field, shall transfer them to the corresponding tax agency for handling.

2. Procedures for imposing administrative penalties in the tax field:

2.1) Warnings are applied for the first violation as stipulated at point 1.1, Section II of this Circular.

The decision to issue a warning must be made in writing. When deemed necessary, the competent authority shall send the penalty decision to the local government where the violator resides or to the management agency overseeing the violator.

The decision to issue a warning must be made in writing. When deemed necessary, the competent authority shall send the penalty decision to the local government where the violator resides or to the management agency overseeing the violator.

2.2) Imposing fines:

- If the fine is up to VND 20,000, the authorized person must issue the penalty decision on the spot and issue a receipt for the fine. The penalty decision must clearly state the name, address of the violator, the amount of the fine, the place of payment, and the name of the person issuing the decision; the fine receipt must be handed over to the violator immediately.

- If the fine exceeds 20,000 dong, the competent authority (person) imposing the administrative penalty must prepare an administrative violation record (according to the attached model). Within fifteen days from the date of preparing the record, the competent authority imposing the penalty must issue a decision on administrative penalty (according to the attached model).

- In cases where the decision on administrative penalty for fines of 2,000,000 dong or more must be sent to the People's Procuracy at the same level with one copy.

2.3) The enforcement of the Decision on Administrative Penalty for Violations in the Field of Taxation shall be carried out according to Article 11 of Decree No. 22/CP dated April 17, 1996. Now, additional guidance is provided as follows:

- The decision on administrative penalty must be sent to the person or organization being penalized no later than three days from the date of issuing the decision on administrative penalty. Organizations and individuals violating administrative regulations in the field of taxation must execute the decision on administrative penalty within five days from the date they receive the decision on administrative penalty.

- After the five-day period from the date of receiving the decision on administrative penalty, if organizations and individuals being penalized do not voluntarily comply, the head of the tax authority that issued the decision on administrative penalty has the right:

+ To request the Bank, State Treasury, or other credit institutions to deduct money from the account of the organization or individual to pay taxes and fines.

The tax authority sends a letter along with the decision on handling to the bank or State Treasury, or other credit institutions as the basis for deducting money from the account of the business entity to pay taxes and fines. These credit institutions have the responsibility to implement the preferential deduction system for tax and fine payments.

+ To temporarily detain goods and evidence to ensure the collection of sufficient tax and fine payments. This measure shall only be applied in cases where the temporary detention of goods and evidence is necessary to collect the tax and fine payments.

All cases of temporarily detaining goods and evidence must be based on a written decision by the head of the tax collection authority at the district level (or equivalent) or higher. When implementing the decision on temporarily detaining goods and evidence, a receipt for temporary detention of goods must be prepared (model CTT30). If sealing is required, it must be done immediately in the presence of the owner or representative of the business entity. Goods and evidence temporarily detained must go through handover procedures between tax officers, and the custodian must bear responsibility for any substitution, loss, or damage.

+ To seize assets for auction.

In cases requiring asset seizure, the tax authority issuing the decision on administrative penalty must report and seek opinions from the People's Committee at the same level and the superior tax collection authority. After obtaining the signature of the People's Committee at the same level on the decision, the tax authority will cooperate with the police force and the People's Procuracy to seize assets corresponding in value to the amount of fine and tax to be auctioned according to the law. Proceeds from the auction of goods and evidence of administrative violations related to taxation, which belong to unknown owners, shall be handled in the following order: expenses for investigation, verification, transportation, loading and unloading, selling... (if any), but must be supported by valid receipts; a portion may be awarded as a reward based on the amount of tax evasion discovered. The remaining amount must be fully deposited into the State Budget.

- For all cases of administrative violations subject to fines, when collecting fines, the fine-collecting authority must use revenue receipts issued by the Ministry of Finance. The collected fines must be deposited into the State Budget according to the specified chapter, type, item, and sub-item as stipulated in the State Budget Manual. The management system for revenue receipts and the principle of awarding rewards from actual fines collected shall be implemented according to current state regulations.

The handling of confiscated goods and means of administrative violations shall be carried out according to the provisions of Article 52 of the Administrative Violation Handling Ordinance.

The decision on confiscating goods and means of administrative violations valued at 5,000,000 dong or more must be immediately sent to the People's Procuracy at the same level with one copy.

3. Complaints, reports, and the resolution of complaints and reports:

The procedure for lodging complaints and resolving complaints about decisions on administrative penalties in the field of taxation; the procedure for resolving reports of abuse of power or other illegal acts by tax authorities or persons authorized to impose administrative penalties in the field of taxation shall be carried out according to the provisions of Article 13 of Decree No. 22/CP dated April 17, 1996.

IV. OPENING ACCOUNTS AND COLLECTING PENALTY PAYMENTS

At all levels, including the General Department of Taxation, Provincial Tax Departments, and District Tax Departments, accounts for temporary holding must be opened at the State Treasury at the same level to deposit and settle the amounts of tax evasion and fines directly detected and discovered by the tax authorities, including cases received from other agencies such as market management, police, border guards, forest rangers, specialized state inspection agencies.

Provincial Customs Departments under central cities are allowed to open separate temporary holding accounts at the State Treasury in their respective provinces to deposit and settle the amounts of tax evasion and fines directly detected and discovered by the Customs Authorities.

a) Regarding confiscated goods and evidence:

When selling confiscated goods and evidence, revenue receipts issued by the Ministry of Finance (CTT11) must be used. The entire proceeds must be deposited into the temporary holding account opened at the State Treasury.

The documentation for confiscated goods and evidence includes: Receipt for holding goods, decision on handling by the competent authority, revenue receipt (CTT11), export invoice for confiscated goods and evidence, payment voucher to the State Budget, auction record, decision on establishing a fund, other expense receipts (if any) such as investigation costs, loading and unloading, transportation, storage, testing, appraisal, and organizing the auction.

b) Regarding the amount of tax evasion and fines (excluding late payment fines):

- For fines, based on the decision on administrative penalty, revenue receipts (CTT11) must be issued to the penalized party, and the fines must be deposited into the temporary holding account at the State Treasury.

- For the amount of tax evasion, based on the inspection record, the competent authority must issue a decision to recover the amount of tax evasion, and simultaneously send this decision to the penalized party to require immediate payment of the tax evasion amount into the temporary holding account at the State Treasury.

The concealed tax amount discovered and recovered is the additional tax amount found beyond the tax declaration, outside the quarterly and annual business results report, and outside the monthly tax ledger records of the tax authority. The revenue from the turnover activities of traders who have not paid turnover tax and income tax before transporting goods shall not be included in this calculation, except when recovering taxes along with penalties for concealed turnover tax and income tax.

- The concealed tax and penalty amounts arising in a locality must be deposited into a temporary account in that locality. Transfers between localities are strictly prohibited.

V. REWARD - VIOLATION HANDLING

Rewards can be extracted from the discovered concealed tax amount after the penalty decision or the appeal decision becomes effective.

The reward extraction rate is implemented as follows:

- Two percent (2%) for cases of concealed tax discovered in state-owned economic sectors.

- Five percent (5%) for cases of concealed tax discovered in non-state-owned economic sectors, foreign investment, and other economic organizations.

- Thirty percent (30%) of the administrative violation fine in the tax domain.

Agencies authorized to open accounts at the State Treasury to monitor the establishment and use of the fund to combat false declarations and tax evasion include: Market Management, Public Security, Customs, Taxation, Border Guard, Forest Protection, and Specialized State Inspection.

Agencies entitled to establish funds must comply with the following principles: Funds can only be established after a competent state agency has made a decision on handling and there are no appeals within the time stipulated by law. In case of appeals, the fund can only be established after the appeal process is completed.

The reward fund will be distributed as follows:

- Thirty percent (30%) to establish the unit's reward fund.

- Sixty percent (60%) to establish supplementary operating funds for anti-evasion activities of the unit. If multiple agencies cooperate in inspections, the leading agency retains the funds to establish the fund.

- Ten percent (10%) to be submitted to the direct superior agency of the handling unit to establish a fund to combat false declarations and tax evasion for rewarding cooperating units. If there is no direct superior agency, the funds remain with the unit to supplement operating costs.

Based on the amount deposited into the temporary account according to the notification from the State Treasury and related documents, the Tax Authority and the Customs Department, as the holders of the temporary account, will pay any expenses (if any), issue a decision to extract the fund for the unit according to the prescribed ratio. The fund extraction is based on each resolved case.

- Prepare documentation to send to the State Treasury where the temporary account is opened to transfer the extracted amount from the temporary holding account into the unit's fund account. Simultaneously, immediately complete the procedures to submit the remaining full amount after deducting expenses (if any) and rewards into item 051 (for administrative violation fines), item 052 (for confiscations) according to the sub-item, type, and section of the State Budget Record.

In cases where the inspected entity must simultaneously pay late payment tax, concealed tax, and penalties, the inspection unit must clearly record each type of payment in the inspection report and handling decision to avoid confusion when establishing the fund.

If the inspection unit deliberately violates regulations to obtain rewards, in addition to having to return the improperly obtained reward amount, they will also face disciplinary action, administrative penalties, or criminal prosecution.

In cases where multiple agencies jointly inspect a single matter, the agency responsible for organizing the inspection bears the responsibility to publicly, democratically, and reasonably examine and pay expenses and rewards to cooperating units based on the effectiveness of cooperation.

Fund usage: the head of the agency entitled to establish the fund is responsible for rewarding individuals directly and indirectly involved in combating false declarations and tax evasion. The highest individual reward amount does not exceed 300,000 VND per case and 900,000 VND per month per person. In special cases, the unit head may decide to reward more than 900,000 VND per month per person and bear responsibility for such decisions.

If the reward amount established in the unit's reward fund is insufficient, making individual rewards too small, the unit head may extract from the "Supplementary Operating Fund for Anti-Evasion Activities" to reward those who have achieved success in combating false declarations and tax evasion.

For inspections that span multiple months, the number of months eligible for reward extraction is determined by the number of months recorded in the inspection report. It is strictly prohibited to divide a large inspection into smaller ones to obtain rewards. Reward extraction must be completed definitively for each case.

External staff participating directly in joint inspections are rewarded similarly to internal staff.

Indirect staff (those engaged in leadership, consolidation, and support work) if proposed for reward by inspection units, may receive up to 150,000 VND per case and 500,000 VND per month per person. In special cases, the unit head may decide to reward more than 500,000 VND per month per person.

To maximize the positive effects of rewards, the unit head has the right to decide on reward extraction. Decisions on reward extraction, including those with higher reward rates, must be accurate and the unit head must take responsibility for their decisions.

The remaining amount after reward extraction is retained in the reward fund for use in rewarding staff with achievements in inspection tasks throughout the year.

* The Supplementary Operating Fund for Anti-Evasion Activities is used for the following purposes:

- Supplementing procurement costs for working equipment.

- Costs for summarizing and promoting competition.

- Supplementing costs for propaganda work.

- Rewards for cooperating units and indirect staff involved in combating tax evasion.

- In cases where the reward fund is insufficient, funds can be drawn from this source to supplement.

- Supplementing difficult areas financially to enhance anti-evasion efforts.

* The industry fund is used for the following purpose:

- Supplement funds for propaganda activities.

- Supplement the purchase of work equipment.

- Supplement rewards for competition, annual reviews of industry operations, and awards for other industries participating in tax evasion prevention.

The heads of all levels of tax agencies shall establish a reward fund responsible for awarding individuals directly or indirectly involved in preventing tax evasion through business activities.

Administrative violations in the field of taxation shall be handled according to Article 91, Article 92 of the Administrative Violation Handling Ordinance dated July 6, 1995; Article 14 of Decree No. 22/CP dated April 17, 1996. In cases where an incorrect penalty decision has been made and the fine has been deposited into a temporary account at the Treasury, the person issuing the penalty decision must issue a decision to revoke that incorrect penalty decision, and simultaneously request the State Treasury to refund the incorrectly paid amount.

VI. IMPLEMENTATION

1. Based on the guidance provided in this Circular, the Ministers of relevant Ministries, the heads of agencies equivalent to ministries, government agencies, and Chairmen of People's Committees at all levels shall be responsible for organizing, directing, and supervising the implementation of Decree No. 22/CP dated April 17, 1996.

Organize the dissemination and wide-ranging promotion of the basic contents of the above documents to leaders at all levels, tax management and collection staff, various industries, production and business establishments, and extensively among the general public to strictly implement Decree No. 22/CP dated April 17, 1996 and this Circular.

2. The General Customs Department shall be responsible for collecting export taxes, import taxes, special consumption taxes, and value-added taxes at the import stage. The Customs agency is the competent authority to impose administrative penalties in the field of taxation for violations related to export taxes, import taxes, special consumption taxes, and value-added taxes at the import stage.

This Circular takes effect 15 days from the date of signature and replaces Circular No. 45 TC/TCT dated August 1, 1996.

Pham Van Trong (Signed)

 

TAX DEPARTMENT TAX BRANCH	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness
Number: /QĐ	... day... month... year 19...

 

Pursuant to …;

ADMINISTRATIVE PENALTIES IN THE FIELD OF TAXATION

- Based on the Tax Law, Tax Ordinance;

- Based on the Administrative Violation Handling Ordinance dated July 6, 1995;

- Based on Decree No. 22/CP dated April 17, 1996 of the Government regarding the handling of administrative violations in the field of taxation.

- Based on Circular No. 38 TC/TCT dated August 25, 1990 of the Ministry of Finance concerning the functions, tasks, and organizational structure of the national tax collection system.

- Based on the administrative violation record number... dated... month... year 199...

Considering the nature and degree of the violation of...

Director of the Tax Department:

Branch Director of the Tax Branch:

Head of the Tax Station; Head of the Tax Team:

Tax Officer:

Pursuant to …;

Article 1:

- Imposing an administrative penalty on Mr./Ms....- Business location...Industry...- Has violated...

Form of penalty:

1. Official form of punishment:

- Punished under Point...Clause...Article...

- Punished under Point...Clause...Article...

..........

2. Additional forms of punishment:

Total amount:...dong (in words)...

For Mr./Ms.:

Address:…

Article 2: Mr./Ms....representative...is responsible for paying the fines recorded in Article 1 into the State Budget at...within five days from the date of receipt of the Decision. Mr./Ms. is responsible for implementing this Decision. If not voluntarily carried out, the tax agency will enforce it according to current laws.

Article 3: This Decision takes effect from the date of signing. The tax agency and the tax officers directly imposing the penalty are responsible for enforcing this Decision.

Mr./Ms. has the right to appeal this penalty decision within ten days from the date of receipt of the decision at...

Place of Receipt:

- As per Article 2,

- To be filed:

Name, position of the decision maker
* Individuals need confirmation from local authorities

TAX DEPARTMENT TAX BRANCH	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness
Number: /QĐ	... day... month... year 19...

ADMINISTRATIVE VIOLATION RECORD

Today, at...hours...day... month...year...

in

We include:

1. Position:

Decree

2.

Decree

3.

Decree

Conduct the establishment of the administrative violation record occurring on...month...year...

Location of the violation:

Witnessed by Mr./Ms.

Fax:

ID card number...date...Issuing place

Name of the violator (or representative of the violating organization):

Fax:

Content of the violation:

Statement of the violator:

The record is made in two copies, one given to the party concerned.

During the inspection, the inspection team did not damage or lose any property of the establishment.

sản phẩm gì của cơ sở.

The record was read aloud for everyone to hear and agreed upon by signatures.

The violator (or representative of the violating organization)

...Number:...DECISION TO HAND OVER EVIDENCE AND MEANS OF ADMINISTRATIVE VIOLATIONS IN THE FIELD OF PLANT PROTECTION AND INSPECTION - Column (7): Land area in land allocation decisions, lease decisions, or documents of the competent authority or actual land area managed and used (applicable to assets that are buildings and land).

The recorder (write full name)