Is deliberate omission or incorrect declaration of export or import duty considered tax evasion in Vietnam?

Is deliberate omission or incorrect declaration of export or import duty considered tax evasion in Vietnam?

Pursuant to Clause 7, Article 143 of the Law on Tax Administration 2019, the specific provisions regarding acts of tax evasion are as follows:

Acts of Tax Evasion

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6. Incorrect declaration of exported or imported goods without supplementing the tax declaration dossier after the goods have been cleared through customs.

7. Deliberate omission or incorrect declaration of export or import duty.

8. Conspiring with the consignor for the purpose of tax evasion through the importation of goods.

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Therefore, according to the above regulation, deliberate omission or incorrect declaration of export or import duty is considered an act of tax evasion.

Is deliberate omission or incorrect declaration of export or import duty considered tax evasion in Vietnam? (Image from the Internet)

What is the administrative penalty for tax evasion in Vietnam?

Pursuant to point b, clause 1, Article 17 of Decree 125/2020/ND-CP, specific regulations regarding administrative penalties for tax evasion are as follows:

[1] A fine equal to 1 times the amount of evaded tax for taxpayers with one or more mitigating circumstances when committing one of the following violations:

- Failure to submit taxpayer registration documents; failure to submit tax declaration dossiers or submitting tax declaration dossiers more than 90 days past the deadline, from the date the tax declaration dossier submission deadline expired or from the last date of extension, except as prescribed in points b, c, clause 4 and clause 5, Article 13 of Decree 125/2020/ND-CP.

- Failing to record in accounting books revenue related to determining the payable tax amount, failing to declare, or incorrectly declaring leading to a lack of payable tax or an increase in refundable, exempted, or reduced tax, except for acts specified in Article 16 of this Decree;

- Failing to issue invoices when selling goods or services, except in cases where the taxpayer has already declared tax for the value of goods or services already sold or provided during the corresponding tax period; issuing invoices with incorrect quantities or values to declare lower taxes than actual, discovered after the tax declaration deadline;

- Using illegal invoices; illegally using invoices to declare taxes, thereby reducing the payable tax or increasing the refundable, exempted, or reduced tax;

- Using illegal documents; illegally using documents; using documents that do not reflect the true nature of transactions or the actual transaction values to incorrectly determine the payable tax amount, tax exemptions, reductions, or refunds; creating fraudulent documentation or records for the destruction of supplies or goods that don’t reflect reality to reduce payable tax or increase refundable, exempted, or reduced tax;

- Using tax-exempt, duty-free goods, or those eligible for tax consideration for non-stipulated purposes without declaring purpose changes or tax declarations with the tax authorities;

- Taxpayers engaging in business activities during a requested business pause or suspension period without notifying the tax authorities, except as prescribed in point b, clause 4, Article 10 of Decree 125/2020/ND-CP.

[2] A fine of 1.5 times the evaded tax for taxpayers committing any of the acts specified in clause 1, Article 7 of Decree 125/2020/ND-CP without any aggravating or mitigating circumstances.

A fine of 2 times the amount of evaded tax for taxpayers committing any of the acts specified in clause 1, Article 7 of Decree 125/2020/ND-CP with one aggravating circumstance.

[3] A fine of 2.5 times the amount of evaded tax for taxpayers committing any of the acts specified in clause 1, Article 7 of Decree 125/2020/ND-CP with two aggravating circumstances.

[4] A fine of 3 times the amount of evaded tax for taxpayers committing any of the acts specified in clause 1, Article 7 of Decree 125/2020/ND-CP with three or more aggravating circumstances.

What are principles for handling administrative violations in tax administration in Vietnam?

According to Article 136 of the Law on Tax Administration 2019, specific principles for handling administrative violations in tax administration are stipulated as follows:

- Handling of administrative violations in tax administration shall be carried out according to the provisions of the law on tax administration and the law on administrative violation handling.

- Administrative violations in the use of improper invoices, unauthorized invoices, or using invoices in non-conformable ways leading to tax deficits or tax evasion shall not be penalized as invoice violations but as tax administration violations.

- The maximum fine for acts of incorrect declarations leading to shortfalls in the payable tax amount or increases in tax exemptions, reductions, refunds, or non-revenue, and acts of tax evasion are executed according to regulations.

- For the same administrative violation in tax administration, the monetary penalty for organizations is double that for individuals, except for monetary penalties regarding incorrect declarations leading to shortfalls in payable taxes or increases in exempted, reduced, refunded, or non-revenue tax, and acts of tax evasion.

- In cases where taxpayers are subject to tax imposition as prescribed in Articles 50 and 52 of the Law on Tax Administration 2019, depending on the nature and seriousness of the violation, administrative penalties regarding tax administration may be applied according to regulations.

- Authorized enforcement officers who detect administrative violations in tax administration have the responsibility to issue administrative violation minutes as regulated. In cases where taxpayer registration, tax filing, or electronic tax settlement occurs and the receiving notification via electronic methods clearly identifies the taxpayer’s administrative tax administration violations, such notifications serve as administrative violation records and basis for issuing penalty decisions.

- In cases where violations of tax administration laws require criminal liability, proceedings are conducted according to criminal law regulations.