Is a taxpayer who attempts to liquidate assets or abscond subject to tax enforcement in Vietnam?

Is a taxpayer who attempts to liquidate assets or abscond subject to tax enforcement in Vietnam?

Based on the provisions of Clause 3, Article 124 of the Law on Tax Administration 2019 regarding the cases subject to enforcement of administrative decisions on tax administration as follows:

Cases subject to enforcement of administrative decisions on tax administration

1. The taxpayer has tax arrears for more than 90 days from the due date for payment as prescribed.

2. The taxpayer has tax arrears when the deadline for tax payment extension has passed.

3. The taxpayer has tax arrears and engages in asset dissemination or absconding.

4. The taxpayer does not comply with the administrative penalty decision for tax administration within the time limit specified in the administrative penalty decision for tax administration, except in cases of suspension or delay in executing the penalty decision.

5. No tax enforcement measures have been implemented for cases where the taxpayer's tax arrears have been ring-fenced by the tax administration agency within the period of debt management; late tax payment interest is not calculated according to the provisions of this Law; the taxpayer is allowed to pay off the tax debt in installments within the time frame but not exceeding 12 months from the start of the tax enforcement period.

The installment payment of tax debt is considered by the head of the tax administration directly managing the taxpayer based on the taxpayer's proposal and must have a guarantee from a credit institution. The Minister of Finance stipulates the number of installments and the dossier, procedures for installment payments of tax debt.

6. No enforcement measures are taken for taxpayers who owe customs fees and transit fees for goods and means of transport.

7. An individual who is the legal representative of a taxpayer must fulfill the tax obligations of the enterprise subject to enforcement of administrative decisions on tax administration before departure and may be temporarily suspended from exit according to the law on exit and entry.

Thus, a taxpayer with tax arrears who disseminates assets will be subject to enforcement of administrative decisions on tax administration.

Is a taxpayer who attempts to liquidate assets or abscond subject to tax enforcement in Vietnam? (Image from the Internet)

What are the 5 tax enforcement measures in Vietnam?

According to the provisions of Clause 1, Article 125 of the Law on Tax Administration 2019, the 5 tax enforcement measures include:

[1] Withholding money from the account of the entity subject to enforcement of administrative decisions on tax administration at the State Treasury, commercial banks, and other credit institutions; freezing accounts;

[2] Deducting a portion of wages or income;

[3] Stopping customs procedures for export and import goods;

[4] Suspending the use of invoices;

[5] Seizing assets, auctioning seized assets as prescribed by law;

Does the tax enforcement decision state the reasons?

Based on the provisions of Clause 1, Article 127 of the Law on Tax Administration 2019 regarding the tax enforcement decision as follows:

Tax enforcement decision

1. The tax enforcement decision includes the following main contents:

a) The date, month, and year of the decision;

b) The basis for the decision;

c) The person making the decision;

d) Name, address, tax code of the taxpayer subject to enforcement of administrative decisions on tax administration;

dd) The reason for enforcing the administrative decision on tax administration;

e) The enforcement measures for the administrative decision on tax administration;

g) The time, location for implementation;

h) The presiding agency and coordinating agency implementing the tax enforcement decision.

2. The tax enforcement decision must be sent to the individual subject to enforcement, the immediately superior tax administration agency, and related organizations and individuals; if eligible for electronic transactions in tax administration, the enforcement decision must be sent electronically and updated on the electronic information portal of the tax administration agency; in cases of enforcement by measures specified at point đ, Clause 1, Article 125 of this Law, the enforcement decision must be sent to the Chairman of the commune-level People's Committee where the enforcement of administrative decisions on tax administration is implemented before execution.

3. The enforcement decision is effective for 1 year from the date of issuance; in cases of enforcement by means of withdrawal of funds from accounts or account freezing of the entity subject to enforcement, it is effective within 30 days from the date of decision issuance.

Thus, according to the above regulation, the tax enforcement decision must clearly state the reason for enforcement of the administrative decision on tax administration.