Circular No. 169/2011/TT-BTC guides the implementation of certain provisions of Decree No. 185/2004/NĐ-CP dated November 4, 2004, and Decree No. 39/2011/NĐ-CP dated May 26, 2011, amending and supplementing certain provisions of Decree No. 185/2004/NĐ-CP of the Government 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 and Decree No. 

39/2011/NĐ-CP dated May 26, 2011 amending and supplementing certain provisions of Decree No. 185/2004/NĐ-CPAdministrative penalties for violations in the field of Accounting MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND

Pursuant to the Administrative Violation Handling Ordinance No. 44/2002/PL-UBTVQH10 dated July 2, 2002 and the Ordinance Amending and Supplementing Certain Provisions of the Administrative Violation Handling Ordinance No. 04/2008/PL-UBTVQH12 dated April 2, 2008 of the Standing Committee of the National Assembly; of the Government on

Pursuant to Decree No. 37/2005/NĐ-CP dated March 18, 2005 of the Government on the procedures for applying coercive measures to enforce administrative penalty decisions;

_____________________________

 

Pursuant to the Law on Accounting No. 03/2003/QH11 dated June 17, 2003;

Pursuant to Decree No. 185/2004/NĐ-CP dated November 4, 2004 and Decree No. 39/2011/NĐ-CP dated May 26, 2011 amending and supplementing certain provisions of Decree No. 185/2004/NĐ-CP of the Government on Administrative Penalties for Violations in the Field of Accounting;

The Ministry of Finance issues guidelines for implementing certain provisions of Decree No. 185/2004/NĐ-CP dated November 4, 2004 and Decree No. 39/2011/NĐ-CP dated May 26, 2011 amending and supplementing certain provisions of Decree No. 185/2004/NĐ-CP of the Government on Administrative Penalties for Violations in the Field of Accounting, as follows:

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

1. Scope and subjects of application This Circular applies to individuals, agencies, organizations within Vietnam and foreign entities operating in Vietnam (hereinafter referred to as individuals, organizations) who commit violations of accounting laws that are not criminal offenses under Decree No. 185/2004/NĐ-CP dated November 4, 2004 and Decree No. 39/2011/NĐ-CP dated May 26, 2011 amending and supplementing certain provisions of Decree No. 185/2004/NĐ-CP of the Government on Administrative Penalties for Violations in the Field of Accounting (hereinafter referred to as Decree No. 185/2004/NĐ-CP amended and supplemented).

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

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

3. Agencies and organizations subject to this Circular include:

a) State agencies, public institutions, organizations using state budget funds and public institutions, organizations not using state budget funds as stipulated 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 stipulated 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 activities.

Article 2. Principles for imposing administrative penalties in the field of accounting

1. All administrative violations in the field of accounting must be detected promptly and stopped immediately. The handling of administrative violations must be carried out quickly, fairly, thoroughly; consequences caused by administrative violations must be remedied according to the provisions of the law.

2. Individuals and organizations shall only be subject to administrative penalties 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 amended and supplemented and Article 1 of this Circular.

3. Administrative penalties must be imposed by persons with authority in accordance with the provisions of the law.

4. A single act of administrative violation in the field of accounting shall only be subject to one administrative penalty. If multiple people jointly commit an act of administrative violation, each violator shall be penalized. If a person commits multiple acts of administrative violation, penalties shall be imposed for each individual violation.

5. Administrative penalties must be based on the nature, severity of the violation, the identity of the violator, and mitigating and aggravating circumstances specified in Article 6 of Decree No. 185/2004/NĐ-CP to determine the form and amount of fines, apply supplementary penalties, and appropriate measures to remedy consequences. Specific fine amounts for a single act of administrative violation are determined according to the provisions of Article 5 and Articles 7 to 16 of Chapter II of Decree No. 185/2004/NĐ-CP amended and supplemented and guided in Chapter II of this Circular.

6. Administrative penalties in the field of accounting shall not be imposed in the following cases:

a) Exceeding the time limit for imposing administrative penalties as provided for in Article 3 of Decree No. 185/2004/NĐ-CP amended and supplemented.

b) Administrative violations indicating criminal offenses, including:

- Administrative violations in the field of accounting indicating criminal offenses 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 document requesting the transfer of files for criminal prosecution.

FORMS AND AMOUNTS OF ADMINISTRATIVE PENALTIES

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 amended and supplemented, the forms and amounts of penalties are specifically prescribed as follows:

Chapter II

FORM AND AMOUNT OF FINES

Pursuant to the provisions of Article 5, Article 6 of Chapter I and Articles from 7 to 16 of Chapter II of Decree No. 185/2004/NĐ-CP amending and supplementing, the form and amount of fines are specified as follows:

Article 3. Forms and levels of monetary fines for violations concerning accounting vouchers

1. For a violation stipulated in Clause 1, Article 7 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific fine amount is VND 1,100,000.

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

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

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

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

2. For a violation stipulated in Clause 2, Article 7 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific fine amount is VND 6,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 4,000,000;

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

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

- In cases with three or more aggravating circumstances, the fine amount is VND 10,000,000.

3. For a violation stipulated in Clause 3, Article 7 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific fine amount is VND 20,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 15,000,000;

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

- In cases with one or two aggravating circumstances, the fine amount is VND 25,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 30,000,000.

4. For a violation stipulated in Clause 4, Article 7 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific fine amount is VND 25,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 23,000,000;

- In cases with three or more mitigating circumstances, the fine amount is VND 20,000,000;

- In cases with one or two aggravating circumstances, the fine amount is VND 27,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 30,000,000;

Article 4. Forms and levels of monetary fines for violations concerning accounting books

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

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

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

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

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

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

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

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

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

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

3. For a violation stipulated in Clause 3, Article 8 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific fine amount is VND 10,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 8,000,000;

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

- In cases with one or two aggravating circumstances, the fine amount is VND 12,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 15,000,000;

4. For a violation stipulated in Clause 4, Article 8 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific fine amount is VND 22,500,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 20,000,000;

- In cases with three or more mitigating circumstances, the fine amount is VND 15,000,000;

- In cases with one or two aggravating circumstances, the fine amount is VND 25,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 30,000,000;

Article 5. Forms and levels of monetary fines for violations concerning accounting accounts

1. For a violation of Clause 1, Article 9 of Decree No. 185/2004/ND-CP, amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 7,500,000.

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

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

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

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

2. For a violation of Clause 2, Article 9 of Decree No. 185/2004/ND-CP, amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 15,000,000.

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

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

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

- In cases with three or more aggravating circumstances, the fine amount is VND 20,000,000.

Article 6. Forms and levels of monetary fines for violations concerning financial reporting, final accounts reporting, and public disclosure of financial reports

1. For a violation of Clause 1, Article 10 of Decree No. 185/2004/ND-CP, amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 10,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 8,000,000;

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

- In cases with one or two aggravating circumstances, the fine amount is VND 12,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 15,000,000;

2. For a violation of Clause 2, Article 10 of Decree No. 185/2004/ND-CP, without aggravating or mitigating circumstances, the specific amount of the fine is VND 22,500,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 20,000,000;

- In cases with three or more mitigating circumstances, the fine amount is VND 15,000,000;

- In cases with one or two aggravating circumstances, the fine amount is VND 25,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 30,000,000.

Article 7. Forms and levels of monetary fines for violations concerning accounting inspection

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

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

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

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

- In cases with three or more aggravating circumstances, the fine amount is VND 10,000,000.

Article 8. Forms and levels of monetary fines for violations concerning the preservation and storage of accounting documents

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

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

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

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

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

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

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

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

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

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

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

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

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

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

- In cases with three or more aggravating circumstances, the fine amount is VND 20,000,000.

Article 9. Forms and levels of monetary fines for violations concerning asset inventory

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article 10. Forms and levels of monetary penalties for violations concerning the organization of accounting bodies, the allocation of accounting personnel, or hiring accounting personnel

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

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

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

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

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

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

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

- In cases with three or more mitigating circumstances, the amount of the fine is VND 10,000,000;

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

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

Article 11. Forms and levels of monetary penalties for violations concerning the practice of accounting

For a violation stipulated in Clause 1, Article 15 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 25,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 23,000,000;

- In cases with three or more mitigating circumstances, the fine amount is VND 20,000,000;

- In cases with one or two aggravating circumstances, the fine amount is VND 27,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 30,000,000;

Article 12. Forms and levels of monetary penalties for violations concerning the application of accounting standards, accounting systems, and other regulations

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

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

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

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

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

2. For a violation stipulated in Clause 2, Article 16 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 20,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 15,000,000;

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

- In cases with one or two aggravating circumstances, the fine amount is VND 25,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 30,000,000;

Article 13. Forms and levels of monetary penalties for violations related to organizing training courses for chief accountants

1. For a violation stipulated in Clause 1, Article 16a of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 7,500,000.

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

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

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

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

2. For a violation stipulated in Clause 2, Article 16a of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 15,000,000.

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

- In cases with three or more mitigating circumstances, the amount of the fine is VND 10,000,000;

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

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

3. For a violation stipulated in Clause 3, Article 16a of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the specific amount of the fine is VND 25,000,000.

- In cases with one or two mitigating circumstances, the fine amount is VND 23,000,000;

- In cases with three or more mitigating circumstances, the amount of the fine is VND 20,000,000;

- In cases with one or two aggravating circumstances, the fine amount is VND 27,000,000;

- In cases with three or more aggravating circumstances, the fine amount is VND 30,000,000;

Article 14. Forms and duration of supplementary penalties: revocation of the Professional Practice Certificate

1. For a violation stipulated in Points a, b, Clause 3, Article 7 and Points a, b, c, Clause 4, Article 8 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the period of revoking the Professional Practice Certificate for accountants or the Auditor's Certificate is nine months.

- In cases with one or two mitigating circumstances, the period of revocation is eight months;

- In cases with three or more mitigating circumstances, the period of revocation is six months;

- In cases with one or two aggravating circumstances, the period of revocation is ten months;

- In cases with three or more aggravating circumstances, the period of revocation is twelve months;

2. For a violation stipulated in Points c, d, đ, e, Clause 3, Article 7, Clause 4, Article 7, Points d, đ, Clause 4, Article 8 and Points e, g, Clause 1, Article 15 of Decree No. 185/2004/ND-CP amended and supplemented, without aggravating or mitigating circumstances, the period of revoking the Professional Practice Certificate for accountants or the Auditor's Certificate is three months.

- In cases with one or two mitigating circumstances, the period of revocation is two months;

- In cases with three or more mitigating circumstances, the period of revocation is one month;

- In cases with one or two aggravating circumstances, the period of revocation is four months;

- In cases with three or more aggravating circumstances, the period of revocation is five months.

Article 15. Administrative violations in the accounting sector leading to tax evasion or tax fraud

1. When determining that administrative violations in the accounting sector as stipulated from Article 7 to Article 16 of Decree No. 185/2004/ND-CP, amended and supplemented, lead to tax evasion or tax fraud, the authorized authority for administrative violation penalties in the accounting sector must impose administrative penalties according to Decree No. 185/2004/ND-CP, amended and supplemented, and the guidance provided in this Circular, then immediately transfer the file to the same-level tax authority for handling in accordance with the law on administrative violations in the tax sector.

2. The following acts shall be considered administrative violations in the accounting sector leading to tax evasion or tax fraud:

a) Leaving out accounting data from the accounting books or recording accounting books not in accordance with the accounting regulations, thereby reducing the amount of tax payable or increasing the amount of tax refund or tax exemption/reduction;

b) Altering, erasing accounting vouchers or accounting books with the aim of reducing the amount of tax payable or increasing the amount of tax refund or tax exemption/reduction;

c) Using blank invoices or other false accounting vouchers with the purpose of reducing the amount of tax payable or increasing the amount of tax refund or tax exemption/reduction;

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 refund or tax exemption/reduction;

đ) Maintaining two sets of accounting books for the same accounting entity but with different contents, with the aim of reducing the amount of tax payable or increasing the amount of tax refund or tax exemption/reduction.

Chapter 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/ND-CP, amended and supplemented, the procedures for imposing penalties and enforcing penalty decisions are specified as follows:

Article 16. Procedures for Imposing Warnings

The warning penalty form shall be applied to individuals or organizations committing minor administrative violations for the first time, with many mitigating circumstances. For the warning penalty form, the authorized authority for imposing penalties does not issue a Violation Record but issues a penalty decision on the spot.

Article 17. Issuing a Violation Record in the Accounting Sector

The authorized authority for imposing administrative penalties in the accounting sector, while performing official duties, when discovering administrative violations in the accounting sector, has the responsibility to promptly issue a Violation Record in the Accounting Sector, except in cases of warnings as stipulated in Article 16 of this Circular. The model record is specified in Appendix I.

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

Once completed, the record must be handed over to the individual or organization that violated one copy. If the violation exceeds the penalty authority of the person issuing the record, that person must send the record to the authorized authority for imposing penalties.

In cases where state management agencies such as the Finance Department, Tax Department, State Audit Office, etc., discover administrative violations in accounting 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 authorized authority for issuing administrative penalty decisions as stipulated in Articles 18, 19, and 20 of Decree No. 185/2004/ND-CP, amended and supplemented.

Article 18. Decision on Administrative Sanctions and Time Limit for Issuing Such Decisions

1. The decision on administrative sanctions in the field of accounting must clearly state the violation, the form and amount of fines, additional penalties, measures to remedy consequences, and other contents according to the model prescribed in Appendix II.

2. For simple cases where the violations are clear, the decision on administrative sanctions must be issued within ten (10) days from the date of recording the administrative violation in the record. For cases with many complex circumstances requiring clarification of the violator or other complex circumstances, the time limit for issuing the decision on administrative sanctions is thirty (30) days from the date of recording. Beyond this period, the authorized authority shall not issue the decision on administrative sanctions.

3. If the authorized authority has an error in failing to issue a decision on administrative sanctions within the time limit, they may be subject to disciplinary action, criminal liability pursued, and if damage is caused, compensation must be provided according to the law.

4. When deciding on administrative sanctions against a person who commits multiple administrative violations, the authorized authority shall issue only one decision on administrative sanctions in which the form and amount of sanctions for each violation are decided; if the sanction is a fine, it shall be accumulated into a total fine.

5. The decision on administrative sanctions shall be sent to the individual or organization being sanctioned and the agency collecting the fine within three (3) days from the date of issuance of the decision on administrative sanctions.

6. The decision on administrative sanctions of the authorized authority shall bear the stamp of the authority issuing the decision on administrative sanctions.

7. In cases where the decision on administrative sanctions is made by those without the direct authority to stamp, the decision on administrative sanctions shall bear the stamp of the issuing authority in the upper left corner of the decision, where the name of the sanctioning authority and the number and code of the decision are recorded.

Article 19. Payment of Fines and Time Limit for Payment of Fines

1. Individuals and organizations being sanctioned must pay the fine into the State Budget Fund at the National Treasury Office specified in the decision on administrative sanctions within ten (10) days from the date of receiving the decision on administrative sanctions, except in cases where the fine was paid on the spot.

2. In cases where the decision on administrative sanctions is issued in remote areas where travel is difficult, the decision maker may collect the fine on the spot and deposit it into the National Treasury within seven (7) days.

Article 20. Procedure for Revoking the Accounting Practice Certificate or Auditor Certificate

1. When the violation of an individual requires the supplementary penalty of revoking the Accounting Practice Certificate or Auditor Certificate (collectively referred to as the Practice Certificate), it must be stated in the decision on administrative sanctions. The authorized authority shall seize the Practice Certificate and must immediately notify in writing the Ministry of Finance (Accounting System and Audit Department).

2. Upon expiration of the period for revoking the Practice Certificate as stated in the decision on administrative sanctions, the authorized authority shall return the Practice Certificate to the individual whose right to use the Practice Certificate has been revoked.

Article 21. Procedures for implementing measures to remedy consequences: Seizure of accounting vouchers, accounting books

1. When the violation act of an individual or organization must be subject to supplementary administrative penalty to remedy consequences in the form of seizure of accounting vouchers or accounting books, it shall be recorded in the decision on administrative penalty. The authorized person imposing the penalty must clearly record in the violation report the name and quantity of seized accounting vouchers and books, and have the signatures of the person conducting the seizure, the representative of the penalized organization, and the witness.

2. The authorized person imposing the penalty may seize accounting vouchers and books that violate regulations for handling related impacts. After completing the handling, the authorized person must establish a Committee for Destruction consisting of: the authorized person imposing the penalty, the representative of the violating unit, and the witness.

Article 22. Execution of decisions on administrative penalties

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

1. Individuals and organizations subject to penalties must execute the decision on administrative penalties within ten (10) days from the date they receive the decision on administrative penalty, except where otherwise provided by law. After issuing the decision on administrative penalty, the authorized person imposing the penalty must deliver the decision to the person subject to penalty or notify them to come and collect it. The time when individuals and organizations subject to penalty receive the decision on administrative penalty is considered the time when they receive the decision on administrative penalty.

2. If individuals and organizations subject to penalty do not voluntarily comply with the deadline specified in Clause 1 of this Article, they will be subject to compulsory enforcement.

Article 23. Compulsory enforcement of decisions on administrative penalties

1. Individuals and organizations subject to administrative penalties but exceed the deadline specified in Clause 1 of Article 19 of this Circular and do not voluntarily comply with the decision on administrative penalty, they will be subject to compulsory enforcement through the measure of deducting from salary, income, or withholding money from the account of individuals and organizations at banks, credit institutions, or other financial organizations.

Organizations and individuals responsible for paying salaries or incomes, or banks, credit institutions, or financial organizations where individuals and organizations subject to penalties have accounts, within ten (10) days from the date of receipt of the compulsory enforcement decision, shall be responsible for transferring the amount from the deposit account mentioned above to the State Budget through the account opened at the Treasury Office the amount that the individual or organization must pay.

2. In case credit institutions do not implement the retention of the amount in the account of individuals and organizations subject to compulsory enforcement as stipulated in Clause 1 of this Article, the credit institution must pay on their behalf. Individuals and organizations subject to compulsory enforcement are responsible for repaying to the State the amount paid by the credit institution. In cases where the balance in the deposit account is less than the amount to be transferred, individuals and organizations subject to compulsory enforcement, in addition to repaying the amount paid by the credit institution, must also pay to the State the remaining amount to make up the required payment.

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

a) Director of the Department of Finance Inspectorate, Director of the Ministry of Finance Inspectorate;

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

Article 24. Suspension of Execution of Fine Decisions

1. Individuals who are fined VND 2,000,000 or more may be granted suspension of execution of the penalty decision in cases where they are experiencing special economic difficulties and have submitted a request confirmed by an organization or agency.

2. The period for suspending the execution of the fine decision shall not exceed three (3) months from the date of the suspension decision.

3. The authority issuing the fine decision has the right to decide on the suspension of execution of that fine decision.

Article 25. Transfer of Violation Case Files with Criminal Indicators for Criminal Liability Pursuit

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

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

The criminal prosecution authority receiving the case file shall be responsible for informing the transferring authority about the results of the handling of the case.

Chapter IV

IMPLEMENTATION

Article 26. This Circular takes effect from February 1, 2012, and replaces Circular No. 120/2004/TT-BTC dated December 15, 2004, of the Ministry of Finance guiding the implementation of certain provisions of Decree No. 185/2004/NĐ-CP dated November 4, 2004, of the Government on Administrative Penalties in the Field of Accounting.

Article 27. Ministries, sectors, People's Committees, Provincial Departments of Finance, Tax Departments of provinces and centrally-administered cities are responsible for guiding agencies, organizations, and individuals to implement this Circular.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for timely resolution./.