Is putting tax money to illegal use a prohibited act in tax administration in Vietnam?

Is putting tax money to illegal use a prohibited act in tax administration in Vietnam?

Based on Clause 3, Article 6 of the Law on Tax Administration 2019, specific regulations on prohibited acts in tax administration are as follows:

Prohibited Acts in tax administration

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3. Exploiting to misappropriate or use tax money unlawfully.

4. Intentionally failing to declare or inaccurately declaring tax, including not disclosing fully, promptly, and precisely the amount of tax payable.

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Thus, according to the above regulation, the act of putting tax money to illegal use is prohibited in tax administration.

Is putting tax money to illegal use a prohibited act in tax administration in Vietnam? (Image from the Internet)

What are rules for imposition of penalties for tax administrative offences in Vietnam?

According to Article 136 of the Law on Tax Administration 2019, specific regulations on the rules for imposition of penalties for tax administrative offences are as follows:

[1] penalties for tax administrative offences are implemented according to the provisions of the law on tax administration and the law on administrative violations.

[2] Administrative offenses concerning the unlawful use of invoices, non-compliant use of invoices leading to tax deficiencies or evasion shall not be penalized for invoice-related violations but will incur penalties for tax administrative offences.

[3] The maximum financial penalty for acts of misreporting leading to a shortfall in tax payable or an increase in exempt, reduced, refunded, uncollected tax amounts, tax evasion acts shall be executed as prescribed in this Law.

[4] For the same administrative act violating tax administration, the financial penalty for organizations is double that for individuals, except for penalties involving misreporting leading to a shortfall or increase in tax amounts exempted, reduced, refunded, uncollected, tax evasion acts.

[5] If a taxpayer's tax is determined under Articles 50 and 52 of this Law, depending on the nature and extent of the violation, administrative penalties for tax administrative offences may be applied according to the provisions of this Law.

[6] Individuals with authority are responsible for documenting administrative violations if discovering an act of tax administration violation. In cases where electronic taxpayer registration, tax declaration filing, or electronic finalization explicitly determines a tax administration violation, the notification serves as a foundation for issuing penalty decisions.

[7] When law violations in tax administration warrant criminal accountability, they will follow criminal law provisions.

Vietnam: How many forms of penalties for tax administrative offences are there?

Pursuant to Clause 1, Article 138 of the Law on Tax Administration 2019, specific regulations on forms of penalties, fines, and remedial measures are as follows:

Forms of penalties, Fines, and Remedial Measures

1. Forms of penalties for tax administrative offences include:

a) Warning;

b) Monetary fine.

2. Monetary fines in penalties for tax administrative offences are specified as follows:

a) The maximum fine for acts mentioned in Article 141 of this Law follows the regulations of the law on handling administrative violations;

b) A fine of 10% on the amount of tax misreported leading to a shortfall or increase in tax amount in cases of exemption, reduction, refund, non-collection for acts prescribed at Point a, Clause 2, Article 142 of this Law;

c) A fine of 20% on the shortfall amount or increased tax amount in cases of exemption, reduction, refund, non-collection for acts as stipulated in Clause 1 and Points b, c, Clause 2, Article 142 of this Law;

d) A fine ranging from 1 to 3 times the amount of evaded tax for acts specified in Article 143 of this Law.

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Thus, according to the regulation, penalties for tax administrative offences include two forms: a warning and a monetary fine.