Circular No. 89/2000/TT-BTC guides the implementation of Decree No. 49/1999/NĐ-CP of the Government on administrative penalties in the field of accounting.

CIRCULAR

Guidelines for Implementing Decree No. 49/1999/NĐ-CP of the Government on Administrative Sanctions for Violations in the Field of Accounting

Implementation of Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government on Administrative Sanctions for Violations in the Field of Accounting, the Ministry of Finance provides detailed guidance as follows:

 

1- Administrative violations in the field of accounting

 

I - GENERAL PROVISIONS

Administrative violations in the field of accounting are acts committed by individuals or organizations that intentionally or negligently violate state management regulations on accounting but have not reached the level requiring criminal prosecution and must be subject to administrative sanctions according to the law. The administrative sanctions will be imposed based on the severity of the violation and the damage caused, including supplementary penalties and other measures deemed necessary.

2- Subjects of administrative sanctions and scope of application

a- Vietnamese citizens aged 18 years or older shall bear administrative responsibility for all administrative violations they cause in the field of accounting and shall be subject to administrative sanctions as prescribed in Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government and as guided in this Circular.

b- Units and organizations within the state budget revenue and expenditure system and social organization funds; political organizations; political-social organizations; social organizations; social-professional organizations; enterprises of all economic sectors and individual businesses (hereinafter referred to as organizations) shall bear administrative responsibility for all administrative violations their organizations cause in the field of accounting and shall be subject to administrative sanctions as prescribed in Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government and as guided in this Circular.

c- Foreign individuals and organizations legally operating in Vietnam, which are required to perform accounting work according to Vietnamese law, if they commit administrative violations in the field of accounting as stipulated in Chapter II of Decree No. 49/1999/NĐ-CP, shall be subject to administrative sanctions as with Vietnamese individuals and organizations mentioned above. In cases where international treaties to which Vietnam is a party provide different provisions, such treaties shall be implemented.

3- Principles of administrative sanctions in the field of accounting

The handling of administrative violations must be carried out by authorized persons according to the guidelines set forth in Part III of this Circular, based on the following principles:

a- If the violation is caused by an individual, the individual shall be sanctioned;

b- If the violation is caused by an organization, the organization shall be sanctioned.

An organization subject to administrative sanctions must execute the sanction decision, while simultaneously identifying the fault of each individual directly responsible for the administrative violation to impose disciplinary action and material liability.

c- A single administrative violation in the field of accounting shall only be sanctioned once; each organization or individual committing multiple administrative violations shall be sanctioned for each violation; multiple individuals jointly committing a single administrative violation shall each be sanctioned;

d- All administrative violations in the field of accounting, upon discovery, must be immediately halted and promptly and fairly processed according to the sanction procedures and principles, while also taking appropriate measures to mitigate consequences;

e- Administrative sanctions shall not be imposed in the following cases: The violator is determined by forensic medical examination to suffer from mental illness, losing the ability to recognize or control their own behavior during the time of the violation.

4- Time limit for administrative sanctions

a- The time limit for administrative sanctions for violations in the field of accounting is two years from the date the administrative violation in the field of accounting was committed;

b- In cases where the violation leads to criminal proceedings, prosecution, or a decision to bring the case to trial under criminal procedure but there is a decision to terminate the investigation or discontinue the case by competent authorities, administrative sanctions shall be imposed for acts showing signs of administrative violations. The time limit for administrative sanctions for violations in the field of accounting in these cases is three months from the date of the decision to terminate the investigation or discontinue the case;

c- In cases where an individual or organization continues to commit violations during the time limit for administrative sanctions or deliberately avoids or obstructs the imposition of sanctions, the time limit for administrative sanctions shall not apply.

5- Cases where administrative sanctions in the field of accounting are not imposed

a- Administrative sanctions for violations in the field of accounting shall not be imposed if the violation is discovered after the time limit prescribed in Section 4 - Part I - of this Circular has expired;

b- If the administrative violation in the field of accounting shows signs of a crime as prescribed by law, and the local authority or financial audit agency has transferred the file to the competent authority for resolution;

c- If the administrative violation in the field of accounting leads to tax evasion, it must be subject to administrative sanctions in the field of taxation according to current regulations;

d- If the violator suffers from mental illness or another specific disease causing loss of cognitive ability or inability to control their own behavior;

e- Individuals under 18 years old who commit administrative violations in the field of accounting shall be subject to administrative sanctions according to Article 6 of the Administrative Violation Handling Ordinance dated July 6, 1995;

f- Due to unexpected events, emergency situations, natural disasters, or adversities that individuals or organizations could not foresee or were compelled to act to prevent actual harm to common interests.

6- Forms of administrative sanctions in the field of accounting

Each administrative violation in the field of accounting, individuals, and organizations must bear one of the following main forms of administrative sanctions:

Warning;

Fine.

Additionally, organizations and individuals violating the law may also be subject to one or more supplementary forms of administrative sanctions and other measures, such as confiscation of contraband items, forced restoration to the original condition before the administrative violation occurred.

7- Mitigating circumstances for administrative sanctions in the field of accounting

Individuals and organizations that have taken actions:

a- To reduce the harmful effects of the violation or voluntarily rectify the consequences and compensate for losses;

b- Under duress, particularly difficult circumstances, or force majeure.

8- Aggravating circumstances for administrative sanctions in the field of accounting

a- Organized violations;

a- To reduce the harmful effects of the violation or voluntarily rectify the consequences and compensate for losses;

b- Repeated violations, systematically or recidivist within the period subject to administrative sanction decisions in the field of accounting.

b- Repeated violations, systematically or repeatedly within the time limit for administrative violation decisions in the field of accounting;

c- Inciting, enticing, coercing persons dependent on oneself materially orspiritually to commit violations;

d- Taking advantage of one's position or authority to commit violations;

e- Taking advantage of circumstances such as war, natural disasters, or otherextreme difficulties of society to commit violations;

f- Engaging in acts of evasion or concealment of administrative violations aftercommitting them.

9 - The basis for concluding administrative violations in the field of accounting,determining the form of punishment and the amount of fines

a- The provisions of Chapter II regarding violations, forms of punishment, andamounts of fines set forth in Decree No. 49/1999/NĐ-CP dated July 8, 1999 of theGovernment and the guidance provided in this Circular.

b- Current Vietnamese legal regulations on accounting, such as the Accounting andStatistics Ordinance, the Charter of State Accounting Organization, and currentaccounting standards and systems issued by the Ministry of Finance or agreed uponby competent authorities.

II - ADMINISTRATIVE VIOLATIONS IN THE FIELD OF ACCOUNTING, FORMS OFPUNISHMENT AND AMOUNTS OF FINES

Based on the provisions of Chapter II of Decree No. 49/1999/NĐ-CP, theadministrative violations, forms of punishment, and specific amounts of fines areas follows:

1 - Violations concerning the authority to issue and apply accounting systems

1.1- A fine of from VND 1,000,000 to VND 2,000,000 if it is the first violation or ifthere are mitigating circumstances; a fine of up to VND 5,000,000 if it is thesecond violation; if there are aggravating circumstances, a fine of up to VND10,000,000, for any of the following actions:

a- Implementing incorrectly the provisions of the state regarding the authority toissue accounting vouchers, accounting books, accounting accounts, and financialreports or those principles governing accounting systems;

b- Requiring, stipulating, or guiding subordinates to implement accountingvouchers, accounting books, account systems, and financial report formats thatare inconsistent with the current legal regulations on accounting;

c- Not registering the accounting system or registering the accounting system laterthan the prescribed deadline for units required to register their accountingsystems according to the regulations, except in cases where the Ministry ofFinance has approved in writing to extend the registration period for theaccounting system;

d- Modifying accounting vouchers, modifying accounting books, modifyingfinancial reports, opening additional accounts, or changing accounting methodswithout prior written approval from the competent authority as stipulated.

1.2- For violations at points a, b, and d mentioned above, the entity being fined mustcomply with the current accounting system regulations and apply supplementarypunishment in the form of confiscation of the objects of administrative violations.

2 - Violations concerning the principles of using accounting vouchers andaccounting accounts

2.1- A fine of from VND 500,000 to VND 1,500,000 if it is the first violation or ifthere are mitigating circumstances; a fine of up to VND 3,000,000 if it is thesecond violation; if there are aggravating circumstances, a fine of up to VND5,000,000, for any of the following actions:

a- Failing to comply with the principles of recording accounting vouchers,including electronic voucher systems in reflecting economic and financialactivities recorded on accounting vouchers;

b- Using invoices and accounting vouchers not in accordance with the Ministry ofFinance's regulations or without permission from the competent authority,including incorrectly recording economic content on invoices and vouchers;using fake invoices or vouchers past their validity period; using self-printedinvoice templates not yet approved by the Ministry of Finance;

c- Selling blank financial invoices but not causing serious economic consequences.If serious consequences occur, the case must be referred to the competentauthority for criminal proceedings;

d- Purchasing financial invoices not in accordance with the state's regulations onthe management of invoices and vouchers;

e- Losing financial invoices or accounting vouchers without promptly reporting tothe relevant management authorities as stipulated by the state.

If the violations at Points b, c, d, and e mentioned above lead to tax evasion,administrative violations in the field of taxation shall be punished according tocurrent regulations.

2.2- A fine of from VND 2,000,000 to VND 5,000,000 if it is the first violation or ifthere are mitigating circumstances; a fine of up to VND 10,000,000 if it is thesecond violation; if there are aggravating circumstances, a fine of up toVND 15,000,000 for the act of allowing another party to use the unit's accountsto receive and transfer funds in violation of financial and monetary managementdiscipline.

2.3- ASupplementary punishment in the form of confiscation of the objects ofadministrative violations shall be applied to the violations specified in Clause2.1 above (except in cases of lost invoices).

3 - Forgery of accounting vouchers, books, and false reporting of accounting datato misrepresent the truth

3.1- A fine of from VND 2,000,000 to VND 5,000,000 if it is the first violation or ifthere are mitigating circumstances; a fine of up to VND 10,000,000 if it is thesecond violation; if there are aggravating circumstances, a fine of up toVND 15,000,000, for any of the following actions:

a- Forgery of accounting vouchers and books: issuing fictitious vouchers;issuing vouchers incorrectly with respect to actual economic transactions;forging signatures and seals; recording fictitious entries in books withoutsupporting accounting vouchers; maintaining two different sets of bookswith conflicting entries;

b- False reporting of data and misrepresentation in reports: preparing financialreports that do not match the accounting books or reality;

c- ECompelling others to forge accounting vouchers and books, falsely report data,and misrepresent accounting data in reports.

3.2- ASupplementary punishment in the form of confiscation of the objects ofadministrative violations shall be applied to the violations specified in Pointsa and b of Clause 3.1 above.

4 - Violations concerning the timeliness and completeness principles of accounting

4.1- A warning or a fine of from VND 300,000 to VND 1,000,000 if it is the firstviolation or if there are mitigating circumstances; a fine of up to VND 2,000,000if it is the second violation; if there are aggravating circumstances, a fine ofup to VND 4,000,000, for any of the following actions:

a- Recording accounting vouchers not in accordance with the timelinessrequirements of the accounting system: failing to prepare accounting voucherswhen economic transactions have occurred; failing to complete the preparationof vouchers when economic transactions have ended;...

b- Recording accounting books not in accordance with the timeliness requirements ofthe accounting system: failing to record daily in books that require dailyentry and closing; failing to record books when the accounting period hasended;...

c- Establishing or submitting financial reports not in a timely manner as prescribedby the accounting system, including cases where they have been established butnot submitted within the stipulated time frame.

4.2- A fine of VND 500,000 to VND 2,000,000 for the first violation or with mitigatingcircumstances; a fine up to VND 4,000,000 for the second violation; if there areaggravating circumstances, a fine up to VND 7,000,000, for one of the followingacts:

a- Recording accounting vouchers incompletely as prescribed by the accountingmodel;

b- Recording accounting ledgers incompletely as prescribed by the accounting system;

c- Preparing financial reports incompletely as prescribed by the accounting system.

5- Violation of regulations on opening, recording, closing accounting ledgers andinventory checks

5.1- A warning or a fine of VND 200,000 to VND 500,000 for the first violation or withmitigating circumstances; a fine up to VND 1,000,000 for the second violation;if there are aggravating circumstances, a fine up to VND 2,000,000, for one ofthe following acts:

a- Opening or closing accounting ledgers not in accordance with state regulationson accounting: opening and closing accounting ledgers not according to theaccounting year and the accounting system; failing to transfer the correct balancefrom the old accounting year to the new one; failing to reconcile informationbetween accounting ledgers;...

b- Recording accounting ledgers unclearly: misaligned rows; misaligned columns;recording with ink not in accordance with regulations;...

c- Correcting accounting ledgers not in accordance with the prescribed method ofthe accounting system; erasing or rubbing out accounting ledgers.

5.2- A fine of VND 2,000,000 to VND 5,000,000 for the first violation or with mitigatingcircumstances; a fine up to VND 10,000,000 for the second violation; if thereare aggravating circumstances, a fine up to VND 15,000,000, for the act ofrecording or calculating figures in accounting ledgers not in accordance with thecontent and method prescribed by the accounting system.

5.3- A fine of VND 1,000,000 to VND 3,000,000 for the first violation or with mitigatingcircumstances; a fine up to VND 8,000,000 for the second violation; if there areaggravating circumstances, a fine up to VND 15,000,000, for one of the followingacts:

a- Selling goods without issuing financial invoices, without recording sales inaccounting ledgers;

b- Reflecting actual revenue incorrectly as generated: omitting part of the revenuelikely to be generated or increasing fictitious revenue in the reporting period.

Forthe violations mentioned above at Point a and b, if leading to tax evasion taxpunishments shall be imposed according to current regulations.

5.4- A fine of VND 500,000 to VND 1,000,000 for the first violation or with mitigatingcircumstances; a fine up to VND 4,000,000 for the second violation; if there areaggravating circumstances, a fine up to VND 7,000,000, for one of the followingacts:

a- Not implementing or implementing incorrectly state regulations on inventorychecks: not conducting inventory checks at the prescribed times; not reconcilingbooks and comparing inventory figures with actual figures as prescribed;...

b- Not handling or handling incorrectly the results of inventory checks asprescribed by state regulations.

5.5- A fine of VND 3,000,000 to VND 6,000,000 for the first violation or with mitigatingcircumstances; a fine up to VND 15,000,000 for the second violation; if there areaggravating circumstances, a fine up to VND 20,000,000 for the act of leaving outof accounting ledgers various types of assets and capital.

Inaddition to being punished, organizations and individuals who violate must alsotake responsibility for making up payments to the State for the value of lossescaused by administrative violations in accounting as mentioned above.

6 - Violation of the reporting and provision of accounting materials system

A fine of VND 1,000,000 to VND 3,000,000 for the first violation or with mitigatingcircumstances; a fine up to VND 8,000,000 for the second violation; if there areaggravating circumstances, a fine up to VND 15,000,000, for one of the followingacts:

6.1- Preparing financial reports not in accordance with the prescribed forms ofauthoritative bodies;

6.2- Not implementing or implementing incorrectly regulations on providingaccounting materials related to economic activities signed with foreign countriesand other economic relations as required by competent authorities under the law;

6.3- Not reporting, reporting incorrectly or reporting incompletely the contentsrequired by the State or authorized bodies regarding the situation of borrowingand using foreign loans not through the State and domestic financial systems andbanks as prescribed by law;

6.4- Not submitting periodic financial reports as prescribed by financial agenciesand banks regarding the economic activities of units abroad;

6.5- Financial reports not audited as prescribed by law.

7 - Violation of the inspection system in accounting

7.1- A fine of VND 1,000,000 to VND 3,000,000 for the first violation or with mitigatingcircumstances; a fine up to VND 8,000,000 for the second violation; if there areaggravating circumstances, a fine up to VND 15,000,000, for one of the followingacts:

a- Obstructing inspections or not implementing recommendations of inspectionorganizations on accounting without justifiable reasons;

b- Delaying, evading or intentionally not providing accounting materials, vouchers,accounting ledgers, financial reports or not reporting as requested by inspectionorganizations;

c- Altering, changing accounting vouchers, accounting ledgers during financial andaccounting audits. Not implementing self-inspection systems as prescribed bystate regulations;

d- Not implementing sealing orders or sealing improperly files, materials, vouchers,accounting ledgers, cash boxes, assets of competent authorities as prescribed bylaw;

e- Arbitrarily removing, moving or engaging in other actions that alter the sealedstatus of warehouses, cash boxes, gold, precious stones, vouchers, accountingledgers, loan repayment files, collateral, guarantees or seized items that aresealed and temporarily detained without causing consequences. For this act,organizations and individuals discovering the violation need to carefully assessthe degree of violation, if there are signs of criminal activity, they must preparea file and transfer it to the competent authority for criminal proceedings toaddress the violation.

7.2- AApplying other measures includes compelling the restoration to the original state for acts of repairing, altering accounting vouchers, ledgers; acts of arbitrarily removing, moving, or changing the sealed condition of warehouses, safes, accounting vouchers, ledgers, files, or sealed evidence.

8 - Violating the storage regime for accounting vouchers, ledgers, financial reports

8.1 - A fine from 200,000 VND to 500,000 VND if it is the first violation or there are mitigating circumstances; a fine up to 2,000,000 VND if it is the second violation; if there are aggravating circumstances, a fine up to 4,000,000 VND, for one of the following acts:

a - Storing files and accounting documents not in accordance with regulations;

b - Using stored accounting documents not in accordance with regulations.

8.2 - A fine from 500,000 VND to 1,000,000 VND if it is the first violation or there are mitigating circumstances; a fine up to 4,000,000 VND if it is the second violation; if there are aggravating circumstances, a fine up to 7,000,000 VND, for one of the following acts: causing damage or loss of accounting vouchers, ledgers, financial reports during the storage period due to lack of responsibility.

8.3 - A fine from 1,000,000 VND to 3,000,000 VND if it is the first violation or there are mitigating circumstances; a fine up to 8,000,000 VND if it is the second violation; if there are aggravating circumstances, a fine up to 15,000,000 VND, for one of the following acts:

a - Destroying accounting vouchers, ledgers, financial reports before the prescribed storage period has expired;

b - Destroying accounting vouchers, ledgers, financial reports after the storage period has expired without complying with the prescribed procedures;

c - Destroying accounting vouchers, ledgers, financial reports after the storage period has expired beyond authority or improperly.

9 - Violating the principles of accounting organization

9.1 - A fine from 2,000,000 VND to 5,000,000 VND if it is the first violation or there are mitigating circumstances; a fine up to 10,000,000 VND if it is the second violation; if there are aggravating circumstances, a fine up to 15,000,000 VND, for one of the following acts:

a - Arranging accounting staff to concurrently hold warehouse, treasury, or supply positions contrary to State regulations on accounting;

b - Arranging personnel to perform accounting, warehouse, or treasury duties when State regulations on accounting prohibit such arrangements;

c - Not arranging personnel or not organizing an accounting department according to State regulations on accounting.

9.2 - A fine from 3,000,000 VND to 6,000,000 VND if it is the first violation or there are mitigating circumstances; a fine up to 15,000,000 VND if it is the second violation; if there are aggravating circumstances, a fine up to 20,000,000 VND, for one of the following acts:

a - Appointing an accounting manager who has criminal records or disciplinary actions due to violations of professional accounting and finance laws while still under prohibition from holding such positions;

b - Appointing an accounting manager who does not meet the required qualifications and practical experience standards as stipulated.

9.3- AApplying other measures includes compelling reassignment of the position arranged or appointed for the cases of arranging accounting staff and appointing an accounting manager as mentioned above.

10 - Transferring administrative violation files in the field of accounting for criminal prosecution

a - When considering that the level of administrative violation in the field of accounting is serious and indicates a crime, the competent authority must immediately transfer the file to the competent criminal authority for resolution.

b - Strictly prohibiting retaining cases of violations in the field of accounting that indicate crimes for administrative handling.

 III - AUTHORITY TO IMPOSE FINES, PERSONS AND ORGANIZATIONS BEING FINED, PROCEDURES FOR IMPOSING FINES

1 - Authority to impose administrative fines in the field of accounting

a - Financial inspection officers (including tax inspection officers) at all levels performing their duties have the right to issue warnings or impose fines up to 200,000 VND for administrative violations in the field of accounting as specified in Clause 1, Article 9; Clause 1, Article 12 - Decree No. 49/1999/ND-CP.

In necessary cases, supplementary forms of punishment and other measures as provided for in Articles 5, 6, 7, and 11 - Decree No. 49/1999/ND-CP may be applied.

b - The head of the specialized financial inspection agency under the Department of Finance and Price Control has the right to issue warnings or impose fines up to 10,000,000 VND for administrative violations in the field of accounting as specified in Chapter II - Decree No. 49/1999/ND-CP.

In necessary cases, supplementary forms of punishment and other measures as provided for in Articles 5, 6, 7, 11, and 13 - Decree No. 49/1999/ND-CP may be applied.

c - The head of the specialized financial inspection agency under the Ministry of Finance has the right to issue warnings or impose fines up to 20,000,000 VND for administrative violations in the field of accounting as specified in Chapter II - Decree No. 49/1999/ND-CP.

In necessary cases, supplementary forms of punishment and other measures as provided for in Articles 5, 6, 7, 11, and 13 - Decree No. 49/1999/ND-CP may be applied.

d - The Chairman of the People's Committee of districts, counties, towns directly under provinces, cities directly under provinces has the right to issue warnings or impose fines up to 10,000,000 VND for administrative violations in the field of accounting as specified in Chapter II - Decree No. 49/1999/ND-CP.

In necessary cases, supplementary forms of punishment and other measures as provided for in Articles 5, 6, 7, 11, and 13 - Decree No. 49/1999/ND-CP may be applied.

e - The Chairman of the People's Committee of provinces, centrally-administered municipalities has the right to issue warnings or impose fines up to 100,000,000 VND for administrative violations in the field of accounting as specified in Chapter II - Decree No. 49/1999/ND-CP.

In necessary cases, supplementary forms of punishment and other measures as provided for in Articles 5, 6, 7, 11, and 13 - Decree No. 49/1999/ND-CP may be applied.

2 - Delegation of authority to impose administrative fines in the field of accounting.

In cases where those authorized to impose administrative fines as specified in Clause 2 and 3 - Article 15; Clause 1 and 2 - Article 16 of Decree No. 49/1999/ND-CP dated July 8, 1999 of the Government are absent or with their delegation, their deputy has the authority to impose fines within their delegated authority.

3 - Determination of authority to impose administrative fines in the field of accounting

The People's Committee at the district, county, provincial, and centrally-administered municipal levels has the authority to impose administrative fines in the field of accounting within their jurisdiction;

The specialized financial inspection agencies at all levels have the authority to impose administrative fines in the field of accounting within their management.

Other authorities not having administrative penalty powers in the field of accounting, upon discovering acts of administrative violations in the field of accounting, shall be responsible for preparing a record of the violation and transferring the file to the competent authority for resolution.

Where the competent authority with administrative penalty powers finds that the act of administrative violation in the field of accounting exceeds its jurisdiction, it must transfer the file to the higher authority with the appropriate jurisdiction for resolution.

In cases where an act of administrative violation in the field of accounting falls within the administrative penalty powers of multiple competent authorities, the administrative penalty shall be carried out by the first authority to handle the case.

4 - Administrative penalty procedures in the field of accounting

The administrative penalty procedures in the field of accounting shall be implemented according to the provisions set forth in Chapter VI of the Administrative Violation Handling Ordinance dated July 6, 1995, as specifically detailed below:

A warning penalty may be applied if it is the first violation due to objective reasons or mitigating circumstances. The decision on issuing a warning must be made in writing, and when deemed necessary, the authority issuing the penalty decision may send the penalty decision to the local government where the violator resides or to the management authority overseeing the violator.

Upon discovering an act of administrative violation in the field of accounting, the discovering authority has the right to immediately issue an order to stop the violation and proceed to prepare an administrative violation record (Annex 01). The record must be prepared in at least two copies and must contain signatures from the person preparing the record, the violator, and the representative of the unit where the violator works.

Within fifteen days from the date of preparation of the record, the competent authority with administrative penalty powers must issue a penalty decision (Annex 02). In cases where the violation involves complex circumstances requiring investigation, the above period may be extended but not beyond one month.

Where a fine decision of two million dong or more is issued, it must be sent to the People's Procuracy at the same level for their knowledge.

When a single person commits multiple acts of administrative violation and a penalty decision is made against them, the authority deciding the penalty form for each individual act must determine the form of penalty for each act; if the penalties are fines, they must be totaled to determine the total fine amount. In cases where multiple people jointly commit one or more acts of administrative violation, each person must be issued a separate penalty decision.

The penalty decision becomes effective immediately upon issuance, except in specific cases as provided and must be delivered to the organization or individual being penalized within three days. Organizations and individuals subject to the penalty decision must execute the decision immediately upon receipt.

5 - Enforcement of administrative penalty decisions in the field of accounting

The enforcement of administrative penalty decisions in the field of accounting shall be carried out according to the provisions of Article 55 of the Administrative Violation Handling Ordinance dated July 6, 1995, as specifically detailed below:

After five days from the date of receiving the penalty decision, if the organization or individual being penalized does not voluntarily comply, the Chairman of the District, County, City, Province, or Central City People's Committee, the Director of the Financial Inspection Department at the Provincial Finance Department, and the Director of the Ministry of Finance's Financial Inspection Department have the authority:

To request the Bank, State Treasury, or other credit organizations to deduct money from the account of the organization or individual who has been issued a penalty decision to pay the fine.

These credit organizations, upon receiving the letter along with the penalty decision, must be responsible for prioritizing the deduction of the fine amount as specified in the penalty decision.

To cooperate with other functional agencies to apply other enforcement measures to enforce the penalty decision.

For every administrative violation subject to a monetary penalty, when collecting the fine, the authority collecting the fine must use the receipt issued by the Ministry of Finance. The collected fine must be deposited into the State Budget according to the designated chapter, type, item, and sub-item as stipulated in the State Budget Manual. The management system for receipts and the principle of bonus for actual collection of fines are implemented according to current state regulations.

The handling of confiscated items and means of transportation from administrative violations is carried out according to the provisions of Article 52 of the Administrative Violation Handling Ordinance dated July 6, 1995.

6 - Time limit for enforcing administrative penalty decisions in the field of accounting.

An administrative penalty decision in the field of accounting becomes ineffective one year from the date of issuance. During this period, if an individual or organization continues to violate the rules in the field of accounting, it will be considered a repeated violation and can serve as grounds for aggravating circumstances when considering a penalty decision. After this period, if an individual or organization continues to violate, it will be considered a first-time violation.

If an individual or organization being penalized deliberately avoids or delays compliance with the penalty decision, the time limit prescribed in this provision will not be applicable.

IV - COMPLAINTS AND REPORTS

1 - Complaints and Reports

Complaints and reports regarding administrative penalty decisions in the field of accounting, as stipulated in Article 24 of Decree No. 49/1999/NĐ-CP dated July 8, 1999 of the Government on administrative penalties in the field of accounting, shall be handled according to Articles 87, 88, and 90 of the Administrative Violation Handling Ordinance dated July 6, 1995.

2 - Competent Authority for Handling Complaints

a- The Chairman of the People's Committee at the district, county, or provincial city level shall resolve complaints regarding their own administrative penalty decisions in the field of accounting;

The Chairman of the People's Committee at the provincial or centrally-administered city level shall resolve complaints regarding their own administrative penalty decisions and the initial complaint resolution decisions of the Chairman of the People's Committee at the district or county level concerning administrative penalties in the field of accounting;

b- The Director of the Specialized Financial Inspection Department shall resolve complaints regarding their own administrative penalty decisions and those of financial inspectors at the same level concerning administrative penalties in the field of accounting;

c- The Director of the Provincial Finance and Price Department shall resolve complaints regarding the administrative penalty decisions of the Director of the Provincial Financial Inspection Department concerning administrative penalties in the field of accounting;

d- The Minister of Finance shall handle complaints regarding the initial decision on the resolution of the Chairman of the People's Committee of the province or centrally governed city, the Director of the Department of Finance and Price of the province or centrally governed city, and the Head of the specialized financial inspection agency under the Ministry of Finance concerning administrative offenses in the field of accounting, within the scope of their state management functions and authorities.

V ||| REWARD AND DISCIPLINARY MEASURES

1 ||| REWARD

Individuals and organizations that have made contributions in the following matters shall be considered for rewards:

Reporting individuals or organizations engaging in administrative violations in the field of accounting;

Preventing violations and reducing serious damages caused by administrative violations in the field of accounting;

Directly participating in inspections, audits, identifying violations, issuing decisions to impose penalties, and ensuring the effective implementation of penalty decisions shall be considered for timely rewards according to state regulations (including both spiritual and material rewards).

2 ||| DISCIPLINARY MEASURES

Individuals with authority to handle administrative violations in the field of accounting who commit administrative violations in this field or fail to comply with regulations on imposing administrative penalties in the field of accounting shall be subject to disciplinary measures or criminal responsibility pursued, if they cause damage, they must compensate according to current laws.

VI - IMPLEMENTATION

This Circular takes effect from the date it comes into force of Government Decree No. 49/1999/NĐ-CP dated July 8, 1999.

During implementation, if there are any difficulties, please promptly report them to the Ministry of Finance for study and resolution./.

Appendix No. 01

 ADMINISTRATIVE VIOLATION RECORD

Today, at . . . o'clock . . . on the . . . day of the . . . month of the . . . year at . . .

We include:

1 ||| Position: . . .

belonging to...

2 ||| Position: . . .

belonging to...

3 ||| Position: . . .

belonging to...

Time of establishment of the Administrative Violation Record occurred on the . . . day of the . . . month of the . . . year.

Place of violation:       . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Witnessed by Mr./Ms.: . . .

Address:...

ID number: . . . issued on . . ./. . ./ . . . Issuing place: . . .

Name of violator (or representative of violating organization): . . .

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .

Address: ...

Content of violation: . . .

Violator's statement: . . .

The record is established in two copies (one copy given to the party concerned).

During the inspection process, the inspection team did not damage or lose any property of the inspected entity.

The record was read aloud for everyone to hear and all agreed to sign.

1. Accounting regulations for tourism administrative and public service units issued together with Decision No. 1899/1998/QĐ-BTC dated December 19, 1998 of the Minister of Finance;

DECISION ON ADMINISTRATIVE PENALTY

IN THE FIELD OF ACCOUNTING

l Based on the Accounting and Statistics Ordinance dated May 20, 1988;

l Based on the Ordinance on Handling Administrative Violations dated July 6, 1995;

l Based on Government Decree No. 49/1999/NĐ-CP dated July 8, 1999 on Imposing Administrative Penalties in the Field of Accounting;

l Based on the Administrative Violation Record No. . . . dated . . . day of the . . . month of the . . . year.

Considering the nature and degree of violation of . . .

Chairman of the People's Committee (or Inspector-in-Charge) . . .

DECISION:

Article 1:

- Imposing administrative penalty in the field of accounting against Mr./Ms. . . .

- Place of business operation . . ., industry: . . .

- Violation committed: . . .

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .

Form of penalty:

1 ||| Official form of penalty:

- Penalty according to Point . . ., Clause . . ., Article . . ., Amount . . .

- Penalty according to Point . . ., Clause . . ., Article . . ., Amount . . .

-...

2 ||| Supplementary form of penalty:

3 ||| Total amount: . . . VND (in words) . . .

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .

Article 2:

Mr./Ms. . . . representing . . . is responsible for paying the fines recorded in Item 1 into the State Budget at the Treasury within 5 days from the date of receipt of this Decision.

You are responsible for implementing this Decision. If you do not voluntarily comply, the financial authority will enforce the provisions of the law currently in force.

Article 3:

This Decision takes effect from the date of signature. The financial authority and the specialized financial inspector directly imposing the penalty are responsible for enforcing this Decision.

You have the right to appeal this Decision within 10 days from the date of receipt of the Decision at . . .