JOINT CIRCULAR No. 70-TT/LB Circular on cooperation in inspection, control, and tax collection for goods transported on railway lines

CIRCULAR

JOINT MINISTRY OF FINANCE - MINISTRY OF TRANSPORT DECREE NO. 70-TT/LB
DATE: NOVEMBER 14, 1992 ON COOPERATION IN INSPECTION,
CONTROL AND TAX COLLECTION FOR GOODS AND TRANSPORT
ON RAILWAY LINES

In recent times, in implementing tax laws, Directive No. 80/CT of the Council of Ministers, and state regulations on railway transportation, local tax authorities have closely cooperated with the railway sector to organize inspections and controls for tax collection on railway goods transport, achieving many results. Many cases of tax evasion were discovered and dealt with, recovering billions of dong for the state budget. To facilitate the tax authorities in performing their duties, many railway sectors have arranged positions for the construction of inspection stations and provided convenient locations for tax officers to inspect and control on railway platforms and trains; helping to detect and assist tax authorities in pursuing tax evaders.

However, in many places, cooperation between the two sectors has not been satisfactory, such as not allowing tax authorities to set up inspection stations, not permitting tax officers to inspect on railway platforms, and shielding cargo owners from tax evasion. Tax officers conducting widespread inspections create difficulties for the transportation of goods and passengers at railway stations...

To strictly implement tax laws, Directive No. 80/CT of the Council of Ministers, Directive No. 01/TTg of the Prime Minister, and state regulations on railway transportation and safety order, the Joint Ministry of Finance - Ministry of Transport requests the tax and railway sectors of Vietnam to organize cooperative inspections and controls for tax and fare collection on railway goods transport as follows:

II- SUPPORT MEASURES FOR STATE-OWNED AGRICULTURAL FARMS AND FORESTRY COMPANIES IN THE FIELD OF SCIENCE AND TECHNOLOGY

1. The General Department of Taxation shall be responsible for directing local tax agencies to implement business measures to inspect and control tax collection on railway goods transport, aiming to effectively prevent tax loss and ensure safety and order in passenger, luggage, and goods transportation.

2. The Vietnam Railway Corporation shall be responsible for directing production and business units within the sector to assist and provide conditions for tax agencies to perform their duty of controlling tax collection on railway goods transport. Cooperate with tax agencies to disseminate and guide tax policies and related documents to railway employees to jointly combat tax loss.

3. During the execution of tasks, all organizations and individuals must strictly comply with tax laws, Directive No. 80/CT of the Council of Ministers, Directive No. 01/TTg of the Prime Minister, and state regulations on goods transportation and railway transportation safety order. Any violators will bear legal responsibility.

II- RIGHTS AND RESPONSIBILITIES OF THE TAX AUTHORITIES

1. Local tax agencies under normal circumstances may inspect and control taxable goods at:

- Train waiting rooms.

- Station entrances.

- Cargo and luggage storage areas.

In special cases and on key routes, with the agreement of the Vietnam Railway Corporation, they may inspect and control taxable goods at:

- Within the station yard.

- On trains stopped at stations or at departure stations.

2. The head of the tax agency must notify the station of the list of tax officers assigned to collect taxes on railway lines.

Tax officers must wear uniforms and insignia while performing their duties.

Tax officers not assigned to inspect and control at stations or on trains but who discover tax evasion must report to the station and local tax officers for coordinated action, and must not conduct inspections independently.

3. Inspections and controls should focus mainly on train waiting rooms, cargo and luggage storage areas, within the station yard, and during train stops, and must be completed before the train departs. If necessary, tax officers may board trains to verify contraband or tax evasion, but must report to the station and train captain and continue inspections only until the next stop. If not completed, the case must be handed over to the management team at the next station. When boarding trains for duty, tax officers do not need to purchase tickets. Strictly prohibit tax officers from misusing their authority to travel on trains for unauthorized purposes.

4. During inspections, tax officers must use professional methods to accurately target goods transport tax evasion, focusing on large traders and high-value, high-tax-rate consignments, avoiding widespread inspections that disrupt railway operations and order.

5. If railway staff are found selling prohibited goods, tax-evading goods, or shielding tax-evaders, tax officers must inform the station manager or train captain to cooperate in documenting and handling the situation according to the law, including tax recovery or confiscation of prohibited goods.

III- RIGHTS AND RESPONSIBILITIES OF THE RAILWAY SECTOR

1. Stations and railway staff have the responsibility to create conditions and cooperate with tax authorities in inspecting and controlling the implementation of tax policies for goods transported on railway lines. Specifically:

- Inform tax authorities of train arrival and departure times for them to arrange inspection forces.

- Inform tax authorities of the time and location for receiving and transporting goods for each train trip.

- Allow tax officers to inspect and control at station entrances, train waiting rooms, cargo and luggage storage areas, and on trains.

- Refuse to transport prohibited goods and tax-evading goods upon request of the tax authorities (or tax collection teams).

- Assist tax authorities in pursuing sellers of prohibited goods and tax-evading goods.

2. The railway sector has the right to refuse and not accept tax inspection and control over goods transported on railway lines if it finds that the tax official is not a person authorized by the competent authority, the tax official is not wearing prescribed uniforms and insignia, the tax official is under the influence of alcohol or beer, or the tax official violates railway traffic safety regulations.

3. The railway sector has the right to lodge complaints and request compensation from the tax authority for damages caused by the tax authority obstructing or requesting non-transportation of suspected prohibited goods or tax-evading goods, but which are later verified to be untrue.

4. Arrangements shall be made for the tax authority to set up checkpoints and inspection teams at convenient locations.

For new railway stations with construction projects, discussions shall be held with the tax authority to jointly invest capital in building offices, including separate rooms for the tax authority and tax teams.

For completed railway stations, arrangements shall be made for the tax authority to borrow or rent rooms for office space. In cases where rooms cannot be arranged for borrowing or renting, land shall be allocated to the tax authority to build a checkpoint.

5. Discussions shall be held with the tax authority regarding measures to prevent trains from stopping to unload along the tracks and the construction of fences around station yards to facilitate ticket and cargo inspections.

IV- IMPLEMENTATION

1. The Director of the Provincial Tax Department and the heads of units under the Vietnam Railway Corporation are responsible for disseminating this Circular to their subordinates and directly organizing its implementation.

2. During the implementation process, both the tax and railway sectors must regularly draw lessons and propose issues and difficulties to the leadership of the two Ministries for timely supplementation.

This Circular takes effect from the date of signature.