Is an enterprise subject to public disclosure of information when failing to comply with tax decisions in Vietnam?
Is an enterprise subject to public disclosure of information when failing to comply with tax decisions in Vietnam?
Based on Point h, Clause 1, Article 29 of Decree 126/2020/ND-CP, it is stipulated as follows:
Public disclosure of taxpayer information
- Tax authorities publicly disclose information about taxpayers in the following cases:
a) Tax evasion, abetting tax evasion acts, embezzling taxes, violating tax laws and then fleeing from their business premises; illegally issuing or using invoices.
b) Failure to submit tax declaration dossiers after 90 days from the deadline for submitting tax declaration dossiers as prescribed by current tax law.
c) Ceasing operations without completing the procedures to terminate the effectiveness of the tax code, not operating at the registered address.
d) Acts of violating tax laws by taxpayers that affect the tax rights and obligations of other organizations and individuals.
đ) Failing to fulfill the requests of the tax authority as prescribed by law, such as: refusing to provide information or documents to the tax authority, not complying with inspection, audit decisions, and other requests of the tax authority as prescribed by law.
e) Obstructing or preventing tax officials or customs officials from performing their duties.
g) More than 90 days past the deadline for paying taxes and other amounts to the state budget, or past the deadline for complying with tax decisions if the taxpayer or guarantor does not voluntarily comply.
h) Individuals or organizations do not comply with tax decisions and engage in asset dispersion or fleeing.
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According to the above regulations, if an enterprise does not comply with tax decisions and engages in asset dispersion or fleeing, the tax authority will publicly disclose the information.
Is an enterprise subject to public disclosure of information when failing to comply with tax decisions in Vietnam? (Image from the Internet)
What are the tax decisions in Vietnam?
Based on Point b, Clause 1, Article 32 of Decree 126/2020/ND-CP, it is stipulated as follows:
Coercion by means of partial deduction of wages or income
- Subjects of application
a) The measure of partially deducting wages or income applies to individual taxpayers who are coerced to enforce tax decisions and who receive wages, salaries, or income from an agency or organization under a labor contract with a term of 6 months or more or who receive retirement or disability benefits.
b) tax decisions include: decisions on sanctioning administrative violations in tax management; notifications of tax determination, tax determination decisions; notifications of tax debt; refund recall decisions; extension decisions; installment payment decisions; decisions to terminate the effect of decisions on debt freezing of tax debts; decisions on remedial measures as prescribed by law on handling administrative violations in tax management; decisions on compensation for damages; other tax decisions according to the provisions of law.
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Thus, tax decisions include the following decisions:
- Decisions on sanctioning administrative violations in tax management;
- Notifications of tax determination, tax determination decisions;
- Notifications of tax debt;
- Refund recall decisions;
- Extension decisions;
- Installment payment decisions;
- Decisions to terminate the effect of decisions on debt freezing of tax debts;
- Decisions on remedial measures as prescribed by law on handling administrative violations in tax management;
- Decisions on compensation for damages;
- Other tax decisions according to the provisions of law.
When is an enterprise coerced to enforce tax decisions?
Based on Article 124 of the Tax Administration Law 2019, the cases in which an enterprise is coerced to enforce tax decisions are stipulated as follows:
- Having tax debts for more than 90 days from the due date according to regulations.
- Having tax debts when the deadline for tax payment extension expires.
- Taxpayers with tax debts that disperse assets or flee.
- Failing to comply with administrative penalty decisions for violations of tax management within the time limit specified in the administrative penalty decision for tax management violations, except for cases where the execution of the penalty decision is postponed or suspended.
- Failing to implement tax coercive measures for taxpayers whose tax debts are frozen by tax authorities within the debt freezing period; failing to calculate late payment tax charges according to the provisions of this Law; allowed to pay tax debts in installments within the period but not exceeding 12 months from the start of the tax coercion period.
The installment payment of tax debts is considered by the head of the agency directly managing the taxpayer based on the taxpayer’s proposal and must be guaranteed by a credit institution. The Minister of Finance regulates the number of installment payments and the dossier and procedures for paying tax debts in installments.
- Failing to implement coercive measures against taxpayers who owe customs fees and charges on goods and transshipment vehicles.
