This Circular stipulates the handling of goods circulating in the market without sufficient documentation proving tax payment, aiming to prevent false declaration tax evasion. Tax authorities must issue a decision on handling within fifteen days from the date of recording the violation and have the right to auction seized goods to enforce the handling decision.
Key points
- The tax authority considers the transportation and circulation of goods without sufficient documentation proving tax payment as false declaration tax evasion, and the owner of the goods must be subject to punishment for this act.
- When recording the violation, the tax authority must clearly record the name of the violator, the goods, existing invoices and documents, signs of false declaration of quantity and goods, forgery of documents, and evasion of control.
- The tax authority must issue a decision on handling the violation no later than fifteen days from the date of recording the violation. In cases where the owner of the goods does not comply or fails to come forward to pay taxes and fines within five days after the issuance of the handling decision to reclaim the goods, the tax authority has the right to auction the temporarily seized goods.
- In cases where there are still doubts after inspection, the tax authority may conduct further investigation and verification but must issue a handling decision within fifteen days from the date of recording the seizure of goods.
🌐 Social impact of this document
- Positive impact: Helps prevent false declaration tax evasion, strengthens management and control over business activities.
- Negative impact: May cause difficulties for businesses in circulating goods if they do not have sufficient documentation proving tax payment.
❓ Frequently asked questions
Which agency is responsible for issuing the handling decision?
The tax authority is responsible for issuing the handling decision for violations according to this Circular.
What is the time limit for the tax authority to issue a handling decision after recording the violation?
The tax authority must issue a handling decision no later than fifteen days from the date of recording the violation.
If the owner of the goods does not comply with the handling decision, what can the tax authority do?
If the owner of the goods does not comply with the handling decision or fails to come forward to pay taxes and fines within five days after the issuance of the handling decision to reclaim the goods, the tax authority has the right to establish an auction committee for the temporarily seized goods to enforce the handling decision.
What information must the tax authority record in the violation record when it is established?
When recording the violation, the tax authority must clearly record the name of the violator, the goods, existing invoices and documents, signs of false declaration of quantity and goods, forgery of documents, and evasion of control.
If there are still doubts after inspection, what should the tax authority do?
If there are still doubts after inspection, the tax authority may conduct further investigation and verification but must issue a handling decision within fifteen days from the date of recording the seizure of goods.
Full text
CIRCULAR
OF THE MINISTRY OF FINANCE
Supplemental guidance on handling goods circulating in the market without sufficient documentation proving they have been managed by tax authorities
Implementation of the Administrative Offense Penalty Law dated November 30, 1988, and Government Decree No. 01/CP dated October 18, 1992, regarding administrative offense penalties in the field of taxation, the Ministry of Finance issued Circular No. 11-TC/TCT on February 24, 1993, to guide implementation. During the process of handling violations related to invoices and documents for goods in transit and circulation in the market, some sectors and localities have reported that some business owners have taken advantage of the time limit stipulated in Circular No. 11 to legitimize invoices or rotate receipts to evade taxes, causing difficulties for management agencies.
Implementing the Administrative Offense Sanction Law dated November 30, 1988, and the Government Decree No. 01/CP dated October 18, 1992 on administrative offense sanctions in the tax sector, the Ministry of Finance issued Circular No. 11-TC/TCT on February 24, 1993 to guide implementation. During the process of handling violations related to invoices and documents for goods transported and circulated in the market, some sectors and localities have reported that some owners of goods have taken advantage of the time limit stipulated in Circular No. 11 to legitimize invoices and receipts or rotate receipts to evade taxes, causing difficulties for management agencies.
To address the loopholes in Circular No. 11 dated February 24, 1993 of the Ministry of Finance and to encourage organizations and individuals engaged in production and business to strictly comply with accounting systems and invoice issuance regulations when buying and selling goods, and to implement Point 2 of Prime Minister Vo Van Kiet's conclusion at the meeting on October 6, 1993 reviewing the situation of anti-smuggling efforts and discussing measures to improve and strengthen this work in the near future "sectors must review issued documents, identify loopholes... to amend, supplement, or replace them to manage strictly and in accordance with the law, and deal severely with individuals and organizations taking advantage to smuggle";
1. Goods in transit and circulation in the market without complete documentation proving payment of tax or management by tax authorities collecting tax according to regulations for each business entity shall be considered as tax evasion behavior, and the owner of the goods must be penalized for such tax evasion behavior.
1. Goods transported and circulated in the market without complete documentation proving tax payment or tax management by the tax authority according to regulations for each type of business shall be considered as tax evasion behavior, and the owner of the goods shall be subject to punishment for such tax evasion behavior.
In cases where there are doubts after inspection, the tax authority may conduct further investigation and verification to ensure accurate handling within the scope of 15 days from the date of the violation record.
2. To ensure accurate and appropriate handling based on the degree of violation, when recording the violation, the tax authority must clearly state the name of the violator, the goods transported and circulated, existing invoices and documents, missing invoices and documents, the nature of the violation... signs of false declaration of quantity and goods, forgery of documents, evasion of control, etc.
3. The tax authority must issue a decision on handling the violation no later than 15 days from the date of the violation record. If the owner of the goods does not comply with the handling decision or fails to come forward to pay taxes and fines within five days after the decision is made to reclaim the goods, the tax authority has the right to establish a sale auction committee to enforce the handling decision./.
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