How long does it take before being penalized for failing to sign the record of the tax inspection in Vietnam?

How long does it take before being penalized for failing to sign the record of the tax inspection in Vietnam?

Pursuant to point dd, clause 1, Article 15 of Decree 125/2020/ND-CP, which stipulates penalties for violations regarding the execution of tax inspection decisions, tax audit decisions, and enforcement of administrative tax decisions, as follows:

Penalties for violations concerning the execution of tax inspection and audit decisions, enforcement of administrative tax decisions

1. A fine ranging from 2,000,000 VND to 5,000,000 VND for one of the following behaviors:

a) Refusing to accept the tax inspection decision, tax audit decision, or decision to enforce administrative tax decisions when officially delivered or sent by the tax authority as per legal regulations;

b) Failing to comply with the tax inspection or audit decision beyond 3 working days, starting from the date of execution required by the competent authority;

c) Providing tax-related documents, invoices, bills, and accounting records beyond 6 working hours from receiving the request of the competent authority during the inspection or audit period at the taxpayer's headquarters;

d) Providing incomplete or inaccurate information, documents, and accounting records related to determining tax obligations as required by the competent authority during the tax inspection or audit period at the taxpayer's headquarters;

dd) Failing to sign the record of the tax inspection within 5 working days from the date of drafting or the date of public announcement of the minutes.

2. A fine ranging from 5,000,000 VND to 10,000,000 VND for one of the following behaviors:

a) Failing to provide data, documents, and accounting books related to determining tax obligations when requested by the competent authority during the tax inspection or audit period at the taxpayer's headquarters;

...

Thus, according to the above regulations, the taxpayer's failure to sign the record of the tax inspection within 5 days from the date of drafting or public announcement of the minutes will be subject to administrative violation penalties.

How long does it take before being penalized for failing to sign the record of the tax inspection in Vietnam? (Image from the Internet)

What is the purpose of tax inspection in Vietnam?

According to Section 1, Part 1 of the Tax Inspection Process under Decision 1404/QD-TCT of 2015, the purpose of tax inspections is as follows:

- Standardize work content in tax inspection activities.

- Ensure tax inspection activities are conducted in accordance with legal regulations, consistent from the General Department of Taxation to the Department of Taxation, meeting the demands of reform and modernization of the tax sector.

- Enhance the capacity of tax inspection activities, ensuring objectivity, transparency, and accountability in tax inspection work.

What are duties and powers of the person issuing tax inspection decisions in Vietnam?

According to Article 116 of the Law on Tax Administration 2019, the duties and powers of the person issuing tax inspection decisions include:

- Direct, check, and supervise the tax inspection team to perform according to the content and tax inspection decision;

- Request the inspected entity to provide information, documents, and written reports; explanations on matters related to the content of the tax inspection; require agencies, organizations, and individuals with information and documents related to the content of the tax inspection to provide such information and documents;

- Initiate an expert assessment on matters related to the content of the tax inspection;

- Temporarily suspend or recommend competent individuals to suspend actions considered detrimental to the interests of the State, lawful rights, and interests of organizations and individuals;

- Decide on handling authority or recommend competent individuals to handle the inspection results and urge the implementation of tax inspection handling decisions;

- Resolve complaints related to the responsibility of the chief of the tax inspection team and other team members;

- Suspend or replace the chief or members of the tax inspection team when they fail to meet inspection responsibilities or exhibit unlawful behavior, or when they are found to have connections with the entity being inspected or for other objective reasons that prevent them from fulfilling inspection duties;

- Conclude on tax inspection content;

- Forward law violation dossiers to investigating authorities when signs of crime are detected, while simultaneously notifying the procuratorate at the same level in writing;

- Apply measures as stipulated in Articles 121, 122, and 123 of the Law on Tax Administration 2019;

- Request the credit institution where the inspected entity has an account to block that account to aid the inspection when there is a basis to believe that the inspected entity is dispersing assets or not executing the decision to recover money, assets of the Chief Inspector or the head of the agency assigned to perform specialized inspection functions or the head of the state management agency.