Is enforcement applied when the taxpayer fails to comply with the tax decision in Vietnam?

Is enforcement applied when the taxpayer fails to comply with the tax decision in Vietnam?

Pursuant to Clause 3 Article 124 of the Law on Tax Administration 2019, cases subject to enforcement of administrative decisions on tax administration are regulated as follows:

Cases subject to enforcement of administrative decisions on tax administration

1. Taxpayers with tax debts exceeding 90 days from the deadline for payment as prescribed.

2. Taxpayers with tax debts upon the expiration of the tax payment extension period.

3. Taxpayers with tax debts who are dispersing assets or absconding.

4. Taxpayers who do not comply with the tax decision within the time limit stated in the administrative penalty decision on tax administration violations, except for cases where execution is deferred or temporarily suspended.

5. Tax enforcement measures are not applied in cases where the taxpayer has their tax debt suspended by the tax administration agency within the debt suspension period; late payment interest is not calculated according to this Law; installment payments of the tax debt are allowed within a period 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 agency directly managing the taxpayer based on the taxpayer's proposal and must have a guarantee from a credit institution. The Minister of Finance prescribes the number of installment payments and the dossier, procedures for installment payments of tax debt.

6. No enforcement measures are applied for taxpayers owing customs fees and transit goods, vehicle fees.

7. Individuals who are legal representatives of taxpayers must fulfill the tax obligations of enterprises subject to enforcement of administrative decisions on tax administration before leaving the country and may be temporarily banned from exiting under the provisions of the law on entry and exit.

Thus, if a taxpayer fails to comply with the tax decision, they will be subject to enforcement. However, this is except in cases where execution is deferred or temporarily suspended.

Is enforcement applied when the taxpayer fails to comply with the tax decision in Vietnam? (Image from the Internet)

Is suspending the use of invoices a tax enforcement measure in Vietnam?

Pursuant to Clause 1 Article 125 of the Law on Tax Administration 2019, there are five enforcement measures for administrative decisions on tax administration, which include:

- Deduction of money from the accounts of the subject of enforcement at the State Treasury, commercial banks, or other credit institutions; account freezing;

- Deduction from a portion of wages or income;

- Suspension of customs procedures for exported or imported goods;

- suspending the use of invoices;

- Seizure of assets, auction of seized assets according to law;

Thus, suspending the use of invoices is one of the enforcement measures for administrative decisions on tax administration.

What are the 7 principles for imposing penalties on tax administrative offences in Vietnam?

Pursuant to Article 136 of the Law on Tax Administration 2019, the 7 principles for imposing penalties on tax administrative offences include:

[1] Imposing penalties for tax administrative offences is conducted according to the provisions of the law on tax administration and the law on handling administrative violations.

[2] For violations involving the illegal use of invoices or non-compliant invoices leading to tax deficits or evasion, administrative penalties regarding invoices are not applied, but penalties for tax administrative offences are applied.

[3] The maximum monetary penalty for actions resulting in incorrect declarations leading to a tax deficit or increased tax exemption, reduction, refund, or non-collection is implemented as prescribed by this Law.

[4] For the same administrative violation regarding tax administration, the monetary penalty for organizations is twice that for individuals, except for penalties for incorrect declarations leading to a tax deficit or increased tax exemption, reduction, refund, or non-collection, and tax evasion.

[5] If taxpayers are subject to tax assessment under Articles 50 and 52 of this Law, administrative penalties regarding tax administration may be imposed depending on the nature and severity of the violation according to this Law.

[6] Authorized persons performing public duty who discover tax administrative offences have the responsibility to make administrative violation records as prescribed.

In cases where taxpayers submit taxpayer registration applications, tax declarations, or electronic tax settlements, if the notification of receipt specifies the tax administrative offences of the taxpayer, this notification serves as the administrative violation record for issuing a penalty decision.

[7] Cases where violations of Law on Tax Administration warrant criminal prosecution are handled according to the provisions of criminal law.