Joint Circular No. 70/TTLT on cooperation in inspection, supervision, and tax collection for goods transported on railway routes.

JOINT CIRCULAR

OF THEMINISTRY OF FINANCE - TRANSPORTATION

REGARDING COOPERATION IN INSPECTION,
CONTROL AND TAX COLLECTION ON GOODS TRANSPORTED
ON RAILWAY LINES

In recent times, 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 goods transported by rail, achieving many positive 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 designated convenient locations for tax officers to inspect and control at railway stations and on trains, helping to detect and assist the tax authorities in capturing cases of tax evasion.

However, there are still many places where cooperation between the two sectors has not been satisfactory, such as not allowing the tax authorities to set up inspection stations, not permitting tax officers to inspect and control at railway stations, and covering up for cargo owners who evade taxes. Tax officers conducting widespread inspections create difficulties for the transportation of goods and passengers by the railway station...

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 railway transport safety order, the Ministry of Finance and Transportation requests the tax and railway sectors of Vietnam to organize cooperation in inspections, controls, and tax collection on goods transported on railway lines 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 authorities to take measures to inspect and control tax collection on goods transported on railway lines, aiming to effectively prevent tax loss and ensure safety and order in passenger, luggage, and cargo transport operations.

2. The Vietnam Railway Corporation shall be responsible for directing production and business units within the railway sector to assist and provide conditions for tax authorities to perform their duty of controlling tax collection on goods transported on trains. Cooperate with tax authorities to disseminate and guide tax policies and related documents to railway sector 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 cargo transportation and railway transport safety order. Any violators will bear responsibility under the law.

II- RIGHTS AND RESPONSIBILITIES OF THE TAX AUTHORITIES

1. Local tax authorities under normal conditions may inspect and control goods for tax collection at:

- Train waiting rooms.

- Station entrances.

- Cargo and luggage storage areas.

In special circumstances and on key routes, with the agreement of the Vietnam Railway Corporation, they may inspect and control goods for tax collection at:

- Within the station yard.

- On trains stopped at stations or at departure stations.

2. The head of the tax authority must notify the railway 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 cases must report to the station and local tax officers to coordinate inspections and cannot 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 inspect or verify smuggled goods or tax evasion cases, 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 powers to travel on trains for unauthorized purposes.

4. During inspections, tax officers must use professional methods to accurately target businesses transporting goods that evade taxes, focusing on large-scale businesses and high-value consignments with high tax rates, avoiding widespread inspections that could disrupt railway operations and order.

5. If during inspections, railway employees are found selling prohibited goods, smuggling goods, or covering up for smugglers, tax officers must report to the train captain or station manager to cooperate in documenting and handling the cases according to the law, including tax recovery or confiscation of prohibited goods.

III- RIGHTS AND RESPONSIBILITIES OF THE RAILWAY SECTOR

1. Railway stations and railway sector employees have the responsibility to provide conditions and cooperate with tax authorities in inspecting and controlling the implementation of tax policies on goods transported on railway lines. Specifically:

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

- Inform the 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 or goods involved in tax evasion upon request of the tax authorities (or tax collection teams).

- Assist in detecting and helping tax authorities capture smugglers and those evading taxes.

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 someone authorized by a competent authority, the tax official is not wearing prescribed uniforms and insignias, the tax official is under the influence of alcohol or beer, or the tax official violates regulations concerning railway traffic safety.

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 proposing not to transport suspected prohibited goods or tax-evaded goods, but which are later verified to be incorrect.

4. Arrange for the tax authority to set up checkpoints and inspection teams at convenient locations.

For new railway stations with construction projects, coordinate 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, arrange for the tax authority to borrow or rent rooms for office space. In cases where rooms cannot be arranged for borrowing or renting, allocate land for the tax authority to build a checkpoint.

5. Coordinate with the tax authority on 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's contents to their respective employees and directly organizing its implementation.

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

This Circular takes effect from the date of signature.