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 in the field of taxation

CIRCULAR

Guidelines for Implementing Decree No. 22/CP dated April 17, 1996 of the Government on Administrative Sanctions for Violations in the Field of Taxation
On Administrative Sanctions for Violations in the Field of Taxation

 

Pursuant to Decree No. 22/CP dated April 17, 1996 of the Government on Administrative Sanctions for Violations in the Field of Taxation, the Ministry of Finance provides specific guidelines as follows:

 

I. GENERAL PROVISIONS

1. An administrative violation in the field of taxation is an act committed by organizations or individuals who violate provisions of tax laws, tax ordinances, regulations on issuing purchase and sale documents, 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 shall be subject to administrative sanctions.

2. Subjects liable to administrative sanctions for violations in the field of taxation:

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

2.2) Foreign organizations and individuals if they commit administrative violations in the field of taxation. 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 for violations in the field of taxation:

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

4.2) Main forms of punishment:

Warning.

Fine.

In cases where a fine is imposed on organizations or individuals for multiple administrative violations in the field of taxation discovered in one inspection, each violation shall be punished separately, and then the fines shall 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 field of taxation may also be subject to supplementary punishment in the form of confiscation of property or means used for the violation.

5. Mitigating circumstances when imposing administrative sanctions for violations in the field of taxation:

Organizations or individuals committing administrative violations have taken measures to prevent or reduce the harm caused by the violation or voluntarily rectified and compensated for damages.

6. Aggravating circumstances when imposing administrative sanctions for violations in the field of taxation:

6.1) Recidivism or repeated violations.

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

6.3) Committing violations during the period of enforcement of a decision on administrative sanctions. 6.4) After committing the violation, there are acts of evading or concealing the violation.

7. Cases Not Subject to Administrative Sanctions for Violations in the Field of Taxation:

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

The administrative violation in the field of taxation was discovered more than two years ago from the date of discovery, as specified in Article 12 of Decree No. 22/CP (counted from two years prior to the date of discovery). For violations involving false declarations or tax evasion, the time limit for imposing sanctions shall be determined according to the relevant tax laws and tax ordinances.

More than three months after the decision to suspend investigation or terminate the case against an individual whose administrative violation in the field of taxation has been prosecuted, indicted, or brought to trial under criminal procedure, and the competent 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 avoids or obstructs the imposition of sanctions, the above time limits will not apply, and all administrative violations in the field of taxation discovered will be subject to sanctions.

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

7.3) Individuals under the age of majority who commit administrative violations related to taxation shall be handled according to Article 6 of the Ordinance on Handling Administrative Violations dated July 6, 1995.

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

 

II. VIOLATIONS AND AMOUNTS OF SANCTIONS:

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 field of taxation, forms, and amounts of sanctions:

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

1.1. A first-time violation is subject to a warning; if it is a second-time violation, a fine of VND 20,000 to VND 200,000 shall be imposed. 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 prescribed deadlines 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 of VND 40,000 to VND 200,000 shall be imposed for a first-time violation. If it is a second-time violation, a fine of VND 600,000 to VND 1,000,000 shall be imposed for one of the following behaviors:

Failing to fully comply with the national regulations on the management and use of sales invoices.

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

1.3. A fine of VND 100,000 to VND 1,000,000 shall be imposed for a first-time violation; if it is a second-time violation, a fine of VND 2,000,000 to VND 4,000,000 shall be imposed. If there is one aggravating circumstance, a fine up to VND 6,000,000 may be imposed; 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, documents, and materials related to the tax authority's request.

b) Failing to submit tax declaration forms and accounting reports to the tax collection agency within the time limits stipulated by current guiding documents for the implementation of tax laws and laws on state budget revenues.

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

d) Transporting goods without accompanying documents as required for each business entity (purchase registers, valid documents, other legitimate papers). Penalty from 1,000,000 VND to 10,000,000 VND for the first violation, if the second violation occurs, the penalty will be up to 13,000,000 VND, and if there are aggravating circumstances, the penalty may reach 20,000,000 VND for any of the following acts:

Intentionally not submitting tax declaration forms, accounting reports, and other documents to the tax collection agency as prescribed by the 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 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 within ten days after the second notice, the tax agency may impose penalties as provided in this point.

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

Organizations and individuals purchasing, using invoices and 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 business activities and tax evasion.

1.5. Penalty from 2,000,000 VND to 10,000,000 VND for the first violation; if the second violation occurs, the penalty will be up to 15,000,000 VND, and if there is one aggravating circumstance, the penalty may reach 20,000,000 VND for any of the following acts:

Destroying accounting records, books, and accounting reports related to tax calculation and collection before the expiration of the retention period as prescribed.

Damaging accounting records, books, 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 who commit acts of false declaration and tax evasion as prescribed in current Tax Laws and the Amended Mineral Resources Tax Ordinance, in addition to paying the full amount due from false declarations and tax evasion, 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 who commit acts of false declaration and tax evasion of other types of taxes outside those mentioned above must pay the full amount of tax from false declarations and tax evasion and be fined according to the number of times of false declarations and tax evasion as prescribed below, but the maximum fine shall not exceed 100,000,000 VND:

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

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

b) Establishing accounting books and invoices incorrectly with respect to actual transactions.

c) Excluding data from accounting records or improperly posting to accounts as prescribed, causing the basis for calculating tax to deviate from reality.

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

In cases where organizations and individuals commit violations as prescribed in point 2.1, if discovered before the deadline for the violator to settle taxes or pay taxes as prescribed by law, the penalties prescribed in point 2.1 will not be applied, but instead, the penalties prescribed in clause 2, Article 2 of Decree No. 22/CP dated April 17, 1996, will be applied.

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

a) Goods transported without complete documentation proving payment of tax or management by the tax authority as prescribed for each business entity.

The violation described in this point will 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 payment of tax (for purchased or exchanged goods) or management by the tax authority (for goods transferred within the same unit), but the violator still fails to provide complete documentation.

In cases where 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 penalties as prescribed in point b, clause 2, Article 2 of Decree No. 22/CP dated April 17, 1996.

In cases where the consignor 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 tax and fines to reclaim the goods, the tax authority transfers the case to the financial department at the same level or higher to establish an auction committee to sell the detained goods to enforce collection.

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

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

2.3. For organizations and individuals engaged in production, trade, and import-export activities, if they violate points 2.1 and 2.2 of Section II of this Circular, depending on the nature of the violation, they will be fined from two to five times the amount of tax evaded as prescribed by law.

2.4. In cases of large-scale tax evasion or repeated administrative penalties for tax evasion, the tax authority will transfer the case file to the People's Procuracy at the same level to request criminal prosecution under the provisions of the Law.

3. Violations of the system for collecting and paying taxes and fines:

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

Not to accept tax collection notices, tax collection orders, administrative violation penalty decisions when the tax authority delivers them directly.

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

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

Late payment of taxes or fines recorded in tax payment notices or in tax violation handling decisions issued by the tax authority.

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

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

Delaying tax payments or fines:

Delays in tax payments or fines exceeding 30 days beyond the deadline specified in tax payment notices or administrative penalty decisions are considered delays in tax payments or fines.

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 0.1% of the amount of the late payment for each day of delay.

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

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

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

Unauthorized removal of seals on warehouses, raw material stores, machinery, or factories within the sealed period set by the tax authority.

III. AUTHORITY AND PROCEDURES FOR ADMINISTRATIVE VIOLATION PENALTIES IN THE TAX FIELD
IN THE FIELD OF TAXES

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

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

The head of a tax station or the head of a tax team has the authority to issue warnings and impose fines up to 200,000 VND 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 2,000,000 VND 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 violation penalties in the tax field.

Impose fines equal to the amount of evaded taxes for acts of false declaration and tax evasion.

Confiscate property and means used in tax administrative violations valued up to 10,000,000 VND.

1.3) The Director of the Provincial Tax Service has the authority to:

Issue warnings and impose fines up to 20,000,000 VND 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 violation penalties in the tax field.

Impose fines up to five times the amount of evaded taxes for acts of false declaration and tax evasion according to the specific provisions of current tax laws and ordinances.

Confiscate property and means used in tax administrative violations.

Tax authorities at all levels are authorized to impose penalties for all administrative 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 authority must transfer the file to the competent authority for resolution, but must provide a written recommendation specifying the type of penalty and the amount.

The heads of village, town (combined villages, combined towns) tax teams established pursuant to Circular No. 64 TC/TCCB dated October 29, 1992, of the Ministry of Finance have the same authority to impose administrative violation penalties in the tax field as the heads of tax stations according to Clause 1, Article 7 of Decree No. 22/CP dated April 17, 1996.

Other agencies such as market management, police, border guards, forest rangers, specialized state inspection agencies, during the course of performing their functions, if they discover administrative violations in the tax field, shall transfer them to the same-level tax authority for handling.

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

2.1) Warnings are applied to the first violation as provided in 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 managing agency of 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 managing agency of the violator.

2.2) Imposing fines:

If the fine is up to 20,000 VND, the person authorized to impose the penalty must issue the penalty decision on the spot and issue a receipt for the fine. In the fine decision, the name, address of the person committing the violation, the amount of the fine, the place of payment, and the name of the person issuing the decision must be clearly stated; the receipt for the fine 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 or 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 or 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 banks, 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 entity to pay taxes and fines. These credit institutions have the responsibility to implement the preferential deduction system for tax and fine payments.

Seize goods and evidence to ensure full payment of taxes and fines. This measure shall only be applied in cases where seizing goods and evidence is necessary to collect taxes and fines.

All cases of seizing goods and evidence must have a written decision by the head of the tax collection authority at the district level (or equivalent) or higher. When implementing the decision to seize goods and evidence, a receipt for temporary seizure of goods (model CTT30) must be prepared. If sealing is required, it must be done immediately in the presence of the owner or representative of the business. Goods and evidence seized must go through handover procedures between tax officers, and the custodian must be responsible for any substitution, loss, or damage.

Attach assets for auction.

In cases requiring the attachment of assets, 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 police forces and the People's Procuracy to attach assets worth the amount of fines and taxes to be auctioned according to the law. Proceeds from the auction of goods and evidence violating tax regulations, if abandoned by the owner or of unknown origin, 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. Collected fines must be deposited into the State Budget according to the specified chapter, type, item, category, and sub-item as stipulated in the State Budget Manual. The management system for revenue receipts and the principle of rewarding collected fines are implemented according to current state regulations.

The handling of evidence and means of transportation involved in administrative violations shall be carried out in accordance with the provisions of Article 52 of the Ordinance on Handling Administrative Violations.

Decisions on confiscating evidence and means of transportation involved in administrative violations with a value of 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 PAYING PENALTIES

Tax authorities at all levels including the General Department of Taxation, Provincial Tax Departments, and District Tax Departments are allowed to open temporary accounts 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, forestry rangers, specialized state inspection agencies.

Provincial Customs Departments under central cities are allowed to open separate temporary accounts at the State Treasury at the provincial level 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 account opened at the State Treasury.

Documentation for confiscated goods and evidence includes: Receipt for holding goods, decision on handling by the competent authority, revenue receipt (CTT11), export form for confiscated goods and evidence, payment slip 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, organizing the auction.

b) Regarding 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 account at the State Treasury.

For tax evasion, based on the inspection record, the competent authority issues a decision to recover the amount of tax evasion and simultaneously sends this decision to the penalized party to request immediate payment of the tax evasion into the temporary 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 records of the tax authority. The revenue from the business activities in the circulation phase shall not be included in this calculation (except in cases where the tax and penalties for concealed turnover and income taxes in the circulation phase are collected simultaneously with the penalty for concealed turnover and income taxes for traders who have not paid these taxes before transporting goods).

The concealed tax amount and fines generated in a locality must be deposited into a temporary account in that locality. Transfers between localities are strictly prohibited.

 

V. REWARD - VIOLATION HANDLING

A reward may be extracted from the concealed tax amount discovered after the penalty decision or the appeal decision becomes effective.

The reward extraction rate is 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 anti-fraud and tax evasion fund include: Market Management, Public Security, Customs, Taxation, Border Guard, Forest Protection, and Specialized State Inspection.

Agencies establishing the fund must comply with the following principles: The fund can only be established after a decision by the competent state agency and there is no appeal within the prescribed legal period. In case of an appeal, the fund can only be established after the appeal has been resolved.

The reward fund will be distributed as follows:

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

Sixty percent (60%) to establish a supplementary fund 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 superior agency of the unit handling the case to establish a fund against fraudulent tax evasion for rewarding cooperating units. If there is no direct superior agency, the funds remain with the unit to supplement operational expenses.

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 costs (if applicable), issue a decision to extract the fund for the unit according to the specified ratio. The fund extraction is based on each processed case.

Prepare documentation to send to the State Treasury where the temporary account is opened to transfer the extracted amount from the temporary account to the unit's fund account. Simultaneously, immediately process the payment of the remaining amount after cost reimbursement (if applicable) and reward allocation into item 051 (for administrative violation fines) and item 052 (for confiscations) according to the corresponding sub-item, type, and section of the State Budget Register.

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

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

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

Fund usage: the head of the agency establishing the fund is responsible for rewarding individuals directly and indirectly involved in combating fraudulent tax evasion. The highest individual reward cannot exceed 300,000 VND per case and 900,000 VND per month per person. In special cases, the unit head may decide to allocate more than 900,000 VND per month per person and bear responsibility for this decision.

If the unit's reward fund is insufficient, resulting in excessively small individual rewards, the unit head may allocate from the "Supplementary Fund for Anti-Evasion Activities" to reward those who have made contributions to combating fraudulent tax evasion.

For inspections lasting over several months, the number of months eligible for reward extraction is based on the inspection duration recorded in the inspection report. Dividing a large case into smaller ones to obtain rewards is strictly prohibited. Reward extraction must be completed for each case.

External staff participating in joint inspections are entitled to rewards similar to internal staff.

Indirect staff (those involved in directing, summarizing, and supporting work) if recommended for rewards 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 allocate higher rewards exceeding 500,000 VND per month per person.

To maximize the positive impact of rewards, the unit head has the authority to decide on reward allocations. Decisions on reward allocations, including those with higher amounts, 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 fund for anti-evasion activities is used for the following purposes:

Supplementing procurement costs for working equipment.

Costs for summarizing and promoting competition.

Supplementing promotional activity costs.

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

If the reward fund is insufficient, it can be supplemented from this source.

Supplementing difficult areas financially to enhance anti-evasion efforts.

The industry fund is used for the following purpose:

Supplementing promotional activity costs.

Supplement procurement of working equipment

Supplement rewards for competitive activities, annual departmental work summaries, and rewards for departments 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 combating business tax evasion.

Administrative violations in the tax field shall be handled according to Article 91, Article 92 of the Administrative Violations Handling Ordinance dated July 6, 1995; Article 14 of Decree No. 22/CP dated April 17, 1996. In cases where an incorrect penalty has been imposed 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 fine 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 inspecting the implementation of Decree No. 22/CP dated April 17, 1996.

Organize the thorough dissemination of the basic contents of the above documents to leadership levels, tax management and collection staff, related industries, production and business establishments, and widely publicize among the people 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 authority to impose administrative penalties for violations of export taxes, import taxes, special consumption taxes, and value-added taxes at the import stage.

3. This Circular shall take effect fifteen days from the date of signature, and revoke Circular No. 45 TC/TCT dated August 1, 1996.

 

 

 

DECISION ON ADMINISTRATIVE PENALTY
IN THE FIELD OF TAXES

Based on the Tax Law, Tax Ordinance;

Pursuant to the Administrative Violations 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 tax field.

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 state tax collection system.

Based on the administrative violation record number... day... 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; Team Leader of the Tax Team:

Tax Officer:

Pursuant to …;

Article 1:

Imposing an administrative penalty for tax violation against 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.... representing... 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 compulsory measures according to current laws.

Article 3: This Decision takes effect from the date of signing. The tax agency and the tax officer 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

 

 

 

 

 

ADMINISTRATIVE VIOLATION RECORD

Today, at... o'clock... day... month... year...

THE EVIDENCE AND MEANS OF VIOLATION OF ADMINISTRATIVE LAW OF (3) ARE CONFISCATED:

We include:...

1. Position:...

belonging to...

2..............

belonging to...

3.........

belonging to...

Conducting the establishment of an administrative violation record occurring on... day... month... year...

Location of the violation:

Witnessed by Mr./Ms.

Fax:

ID card number... date... place of issuance

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

Address:…

Content of the violation:...

Statement of the violator:...

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

During the inspection process, the inspection team did not damage or lose any property of the inspected entity.

State assets

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)

 

 

 

 

 

REPORT ON THE SITUATION OF TEMPORARY ACCOUNT BALANCES

Respectfully submitted to: Ministry of Finance - General Department of Taxation

Unit of measurement: Million dong

 

 

 

Day... month... year 199...

Head of the unit./.