Circular No. 26 TC/TCT guides the establishment and operation of the Ward, Commune Tax Advisory Board.

CIRCULAR

DIRECTIVE NO. 26 TC/TCT OF THE MINISTRY OF FINANCE ON MARCH 27, 1995 GUIDING THE ESTABLISHMENT AND OPERATION OF TAX ADVISORY BOARDS AT WARD AND COMMUNE LEVELS 

Pursuant to Article 30 of the Law on Value Added Tax, Article 38 of the Law on Income Tax, which stipulates that the Chairperson of People's Committees at all levels shall direct the implementation and supervise the compliance with tax laws within their respective jurisdictions;
Pursuant to Decision No. 829/TTg dated December 30, 1994 of the Prime Minister on certain policies and measures for managing key areas in the 1995 economic and social development plan, Section II, Point 2, Paragraph 3, which provides: "Strengthening tax advisory boards at the grassroots level and enhancing coordination among sectors and mass organizations in tax management work;"
To strengthen leadership and direction from ward and commune authorities, supervision by sectors and mass organizations at the local level over tax collection activities within their jurisdictions.
The Ministry of Finance hereby guides the establishment and operation of tax advisory boards at the ward and commune levels as follows:

I. REGARDING THE ESTABLISHMENT OF THE TAX ADVISORY BOARD:

1. The tax advisory board at the ward and commune levels is an advisory body to the People's Committee of the ward or commune in directing the implementation of tax laws within their respective jurisdictions.

2. The tax advisory board at the ward and commune levels shall include representatives from the following agencies:

- Deputy Chairman of the Ward or Commune People's Committee - Chair of the Board,

- Head of the Ward or Commune Tax Team - Standing Member of the Board,

- Representative of the Ward or Commune Police - Member,

- Representative of the Market Management Ward or Commune, if applicable, may invite additional representatives from the Market Management Board - Member,

- Representative of the Market Management Board - Member,

- Cadre of the Ward or Commune Land Administration - Member,

- Representative of the United Front Organization at the Ward or Commune level - Member,

- Representative of Women's and Youth Associations at the Ward or Commune level - Member.

3. The tax advisory board at the ward and commune levels shall be established by the Chairman of the District, County, or Town People's Committee upon the proposal of the Director of the Tax Revenue Office.

II. MAJOR TASKS OF THE TAX ADVISORY BOARD FOCUS ON THE FOLLOWING ISSUES:

1. Proposing plans to disseminate and popularize tax laws and decrees to taxpayers and organizations, mass organizations, and administrative agencies within the ward and commune. Mobilizing taxpayers to comply fully with business registration and tax declaration and payment systems, ensuring timely and full payment into the State budget.

2. Through functional agencies of the Ward or Commune People's Committee, mass organizations, and the tax office, grasp the status of businesses operating within the jurisdiction and those required to pay taxes, and transfer this information to the People's Committee to guide the tax office in accurately identifying taxable entities without omission.

3. Reviewing the accuracy of taxable income calculations made by the tax office for taxpayers. If the tax office's calculations are inaccurate, propose adjustments to ensure fairness and prevent revenue loss.

Proposing effective tax collection measures to prevent revenue loss, participating in determining the turnover quota for households engaged in production and business activities subject to turnover-based taxation, land classification, determining the area of agricultural land subject to land use tax (or real estate tax), inspecting households' accounting practices...

4. Advising the Ward or Commune People's Committee on granting tax exemptions and reductions to eligible entities in accordance with relevant laws, decrees, and circulars issued by the Ministry of Finance.

5. Proposing coercive measures against entities that delay tax payments and recommending that the Ward or Commune People's Committee and relevant agencies suspend business operations for households that frequently fail to comply with tax declaration and payment regulations.

6. Members of the tax advisory board have the function of protecting the law and promptly proposing to their organizations to consider criminal prosecution of entities that violate tax laws or obstruct tax officials in their duties.

7. Identifying improper actions by tax officials or tax offices that violate tax laws, engage in harassment, collude with taxpayers to reduce tax liabilities, or commit other violations.

III. LIMITATIONS OF THE TAX ADVISORY BOARD:

- Access to and distribution of materials related to current tax policies.

- Right to request the tax office to report on the situation of tax collection within their jurisdiction.

IV. WORKING REGIMES OF THE TAX ADVISORY BOARD:

1. The tax advisory board shall convene once a month to discuss issues outlined in Section II above. Depending on the circumstances of each month, they can discuss and advise the People's Committee on appropriate matters.

Tax officials, as standing members of the advisory board, prepare the agenda through the Chairman of the People's Committee for monthly meetings.

At the meeting, each member of the advisory board may raise additional issues related to those specified in Section II beyond the prepared agenda for the advisory board to provide opinions.

2. The Chair of the advisory board may assign specific tasks to members based on their expertise to facilitate in-depth analysis and improve the effectiveness of the advisory board's work.

3. Decisions of the advisory board shall be implemented by the Chair, who directs relevant agencies to resolve them within their authority. Matters concerning the tax office, finance department, or People's Committee at a higher level shall be communicated to the relevant agency for resolution or information purposes.

4. All meetings and working sessions of the advisory board shall be recorded in minutes for the convenience of management by relevant agencies and the tax office.

5. Costs associated with meetings and resolving matters related to the advisory board's functions shall be covered by the tax sector according to the level determined by the General Department of Taxation.

V- IMPLEMENTATION:

Establish the Tax Advisory Council at the commune and ward level to strengthen the leadership and guidance of the authorities and the coordination among social organizations at the commune and ward levels regarding tax work, ensuring the completion of budget revenue tasks within the commune and ward areas. The Ministry of Finance requests the Chairmen of the People's Committees of provinces and cities to direct all levels of People's Committees, relevant sectors, and tax agencies to implement this.

During the implementation process, if there are any difficulties, they should be reported to the Ministry of Finance for the Ministry of Finance to study and provide additional guidance.