Does a taxpayer have the right to refuse tax audit at its premises without a tax audit decision in Vietnam?

Does a taxpayer have the right to refuse tax audit at its premises without a tax audit decision in Vietnam?

Based on point a, clause 1, Article 111 of the Law on Tax Administration 2019 which stipulates the rights of taxpayers as follows:

Rights and Responsibilities of Taxpayers During tax audit at the Taxpayer's premises

1. Taxpayers have the following rights:

a) To refuse an inspection if there is no tax audit decision;

b) To refuse to provide information and documents not related to the tax audit; information and documents that are state secrets, unless otherwise provided by law;

c) To receive the tax audit minutes and request explanations of the contents of the tax audit minutes;

d) To retain opinions in the tax audit minutes;

đ) To complain, sue, and claim compensation as prescribed by law;

e) To report illegal acts during the tax audit process.

g) In cases of division, separation, merger, consolidation, conversion of enterprise type, dissolution, termination of operation, equitization, cessation of the validity of tax codes, relocation of taxpayer places, and other cases of unexpected inspection directed by competent authorities, except for dissolution or termination of operation where the tax authority is not required to settle taxes as prescribed by law.

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Therefore, taxpayers have the right to refuse tax audit at their taxpayer premises if there is no tax audit decision.

Does a taxpayer have the right to refuse tax audit at its premises without a tax audit decision in Vietnam? (Image from the Internet)

When is a taxpayer subject to tax audit at its premises in Vietnam?

According to clause 1, Article 110 of the Law on Tax Administration 2019, the cases in which a taxpayer is subjected to tax audit at its premises are as follows:

- Cases where the dossier is subject to inspection before tax refund; inspection after tax refund for dossiers that are initially refunded;

- Cases prescribed in point b, clause 2, Article 109 of the Law on Tax Administration 2019;

- Cases of post-customs clearance inspection at the premises of the customs declarant according to legal regulations on customs;

- Cases where there are signs of legal violations;

- Cases selected according to plans, thematic subjects;

- Cases based on recommendations from the State Audit, Inspectorate, or other competent agencies;

- Cases of division, separation, merger, consolidation, conversion of enterprise type, dissolution, termination of operation, equitization, cessation of the validity of tax codes, relocation of taxpayer places, and unexpected inspections directed by competent authorities, except for dissolution or termination of operation where the tax authority is not required to settle taxes as prescribed by law.

What is the procedure for tax audit at a taxpayer's premises in Vietnam?

Based on clause 4, Article 110 of the Law on Tax Administration 2019, the procedure for tax audit at a taxpayer’s premises is as follows:

- Announce the tax audit decision at the beginning of the tax audit;

- Compare the declaration content with accounting books, accounting documents, financial statements, risk analysis results on tax, information data checked at the premises of tax authorities, relevant documents, and the actual situation within the scope, content of the tax audit decision;

- The inspection period is determined in the inspection decision but does not exceed 10 working days at the taxpayer's premises. The inspection period is calculated from the date the inspection decision is announced; if the inspection scope is large or content complex, the person who made the inspection decision may extend it once but not more than 10 working days at the taxpayer's premises;

- Prepare tax audit minutes within 5 working days from the end of the inspection period;

- Process according to authority or propose the competent authority to process according to the inspection result.

Who has the authority to issue tax audit decisions at a taxpayer's premises in Vietnam?

According to clause 1, Article 112 of the Law on Tax Administration 2019, it is stipulated as follows:

Duties and Powers of the Head of the Tax Administration Agency in Issuing tax audit decisions and Tax Administration Officers in tax audit

1. The head of the tax administration agency issuing tax audit decisions has the following duties and powers:

a) Direct the correct implementation of the content and duration recorded in the tax audit decision;

b) Apply measures stipulated in Article 122 of this Law;

c) Extend the inspection period;

d) Decide on handling tax matters, impose administrative penalties according to authority, or propose competent authorities to conclude and issue decisions on administrative penalties regarding tax management;

đ) Resolve complaints and denunciations according to authority.

2. Tax administration officers performing tax audit have the following duties and powers:

a) Carry out the content and compliance with the duration recorded in the tax audit decision;

b) Request the taxpayer to provide information and documents related to the tax audit content;

c) Prepare tax audit minutes; report the inspection results to the individual who issued the tax audit decision and be responsible for the accuracy, truthfulness, and objectivity of those minutes and report;

d) Impose administrative penalties according to authority or propose competent individuals to issue conclusions and processing decisions on tax violations.

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From the above regulations, it can be seen that the authority to issue tax audit decisions at the premises of a taxpayer belongs to the head of the tax administration agency.