How to handle the case where there is a conflict of interest of office holders in taxation in Vietnam?

How to handle the case where there is a conflict of interest of office holders in taxation in Vietnam?

Based on the provisions in Clause 2, Article 10 of the Anti-Corruption Regulations in the Tax Sector, issued with Decision 742/QD-TCT 2020, when an agency, organization, unit, or individual discovers a conflict of interest involving an office holder in taxation, they must inform and report to the immediate manager of that person for review and handling.

How to handle the case where there is a conflict of interest of office holders in taxation in Vietnam? (Image from the Internet)

How to handle reports of conflicts of Interest in office holders in taxation in Vietnam?

Based on the provisions in Clause 2, Article 10 of the Anti-Corruption Regulations in the Tax Sector, issued with Decision 742/QD-TCT 2020, the handling of reports on conflicts of interest is executed following Article 31 of Decree 59/2019/ND-CP (amended by Section 2 of Official Dispatch 298/CP-V.I 2019 and Clause 3, Article 1 of Decree 134/2021/ND-CP), specifically:

(1) The head of the agency, organization, or unit managing or using the person with authority has the power to receive and handle information and reports on conflicts of interest.

Within 5 working days from the date of receiving the information and report, the head of the agency, organization, or unit decides or proposes that the competent authority managing that person apply one of the measures to control conflicts of interest as stipulated in Articles 32, 33, and 34 of Decree 59/2019/ND-CP (amended by Section 3 of Official Dispatch 298/CP-V.I 2019 and Clause 4, Article 1 of Decree 134/2021/ND-CP) or handle according to legal regulations.

(2) Within 5 working days from the date of handling the information and report on conflicts of interest, the agency, organization, or unit handling such information must notify in writing to the person with the conflict of interest and the agency, organization, unit, or individual providing the information and report on conflicts of interest.

Note: The communication and reporting on conflicts of interest in persons with positions of authority in the Tax sector are carried out according to the provisions in Article 30 of Decree 59/2019/ND-CP, specifically:

(1) A person with authority, when assigned work or during the execution of duties, if they know or are required to know that the assigned duties or tasks have a conflict of interest, must report in writing to their immediate manager for consideration and handling according to regulations.

(2) When an agency, organization, unit, or individual discovers a conflict of interest in a person with authority, they must inform and report in writing to the immediate manager of that person for consideration and handling.

(3) Information and reports on conflicts of interest must be made within 5 working days from the date of discovery of the conflict of interest related to the assigned duties.

The information and reports on conflicts of interest must be documented and clarify the following contents:

- The situation involving a conflict of interest;

- The time it occurred and the time it was known or discovered;

- The degree of impact or incorrect influence on the execution of duties by the person with authority;

- Recommendations or proposals for measures to control the conflict of interest.

What is a conflict of interest in Vietnam?

Based on the provisions in Clause 1, Article 10 of the Anti-Corruption Regulations in the Tax Sector, issued with Decision 742/QD-TCT 2020, the cases of conflict of interest are defined in Article 29 of Decree 59/2019/ND-CP, specifically:

A person holding a position of authority is determined to have a conflict of interest when there are clear indications that they fall or are about to fall into one of the following cases:

[1] Receiving money, assets, or other benefits from an agency, organization, unit, or individual related to tasks they handle or within their management scope;

[2] Establishing or participating in the management or operation of a private enterprise, limited liability company, joint stock company, partnership, or cooperative, except as otherwise provided by law;

[3] Consulting for enterprises, organizations, or individuals domestically and abroad on matters related to state secrets, work secrets, or tasks within their decision-making or involvement authority;

[4] Using information obtained through their position or authority for self-interest or to benefit another organization or individual;

[5] Arranging for their spouse, parents, children, siblings to hold management positions in personnel organization, accounting, cash, or warehouse roles within the agency, organization, or unit, or engage in transactions, goods provisioning, service contracts for the agency or unit they head or are deputy head of;

[6] Investing in enterprises operating within industries or professions they directly manage or allowing their spouse or immediate family to engage in business within industries or professions they directly manage;

[7] Signing contracts with enterprises owned by their spouse, parents, children, siblings, or permitting such enterprises to participate in bidding packages of their agency when tasked with transactions, or goods and service contracts for the agency;

[8] Having a spouse, parents, children, siblings with rights or interests directly related to their official duties;

[9] Wrongly intervening or influencing the operations of an agency, organization, unit, or authorized individual for self-interest.