Circular No. 88/TC-TCT guiding additional measures for handling goods circulating in the market without sufficient documentation proving they have been managed by tax authorities.

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.

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 adhere to accounting systems and invoice issuance regulations when buying and selling goods, and to implement Point 2 of the 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,

relevant sectors must review issued documents, identify loopholes... to amend, supplement, or replace them to manage strictly and in accordance with the law, prevent and deal severely with individuals and organizations taking advantage to smuggle. "The Ministry of Finance supplements the guidance on handling goods in transit and circulation in the market without complete documentation proving they have been taxed or managed by tax authorities as follows:";

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.

In cases where there are doubts after inspection, the tax authority may conduct further investigation and verification to ensure accurate handling in accordance with reality but within 15 days from the date of the record of seizure.

2. To ensure accurate and appropriate handling based on the degree of violation, when drafting the record, the tax authority must clearly state the name of the violator, the goods in transit and circulation, existing invoices and documents, missing invoices and documents, the nature of the violation... signs of false declaration of quantity, 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. In cases where the owner does not comply with the handling decision or fails to come forward to pay tax and fines within five days after the decision is issued to reclaim the goods, the tax authority has the right to establish a sale auction committee to enforce the handling decision./.

3- The tax authority must issue a decision to handle the violation no later than fifteen days from the date of the violation record. In cases where the consignor does not comply with the handling decision, or within five days after the issuance of the handling decision, if the consignor does not come to pay taxes and fines to reclaim the goods, the tax authority has the right to establish a council for the auction of temporarily detained goods to enforce the handling decision./.