Is the revocation of the establishment and operation license a tax enforcement measure in Vietnam?
Is the revocation of the establishment and operation license a tax enforcement measure?
Based on the provisions of Clause 1, Article 125 of the 2019 Law on Tax Administration as follows:
Tax enforcement measures
1. Tax enforcement measures include:
a) Deducting money from the account of the entity being coerced to execute the administrative decision on tax administration at the State Treasury, commercial banks, and other credit institutions; freezing the account;
b) Deducting part of the salary or income;
c) Suspending customs procedures for export and import goods;
d) Halting the use of invoices;
dd) Seizing assets, auctioning seized assets as prescribed by law;
e) Collecting money and other assets of the entity being coerced to execute the administrative decision on tax administration held by agencies, organizations, or individuals;
g) Revoking enterprise registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, practicing certificate.
2. The Tax enforcement measures stipulated in Clause 1 of this Article cease to be effective once the tax debt is fully paid into the state budget.
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Thus, according to the above provisions, the revocation of the establishment and operation license is one of the tax enforcement measures.
Is the revocation of the establishment and operation license a tax enforcement measure in Vietnam? (Image from the Internet)
What are cases of tax enforcement in Vietnam?
According to Article 124 of the 2019 Law on Tax Administration, cases of tax enforcement include:
Case (1) Taxpayers with overdue tax debts exceeding 90 days from the due date.
Case (2) Taxpayers with tax debts when the tax payment extension period expires.
Case (3) Taxpayers with tax debts exhibiting asset dissipation or absconding behaviors.
Case (4) Taxpayers who do not comply with the administrative penalty decisions on tax administration within the time limit stated in the administrative penalty decision on tax administration, except for cases of postponed or temporarily suspended execution.
Case (5) Not yet carried out tax enforcement measures for the case where the taxpayer's tax debt is ring-fenced by the tax administration during the debt ring-fencing period; no late tax payment interest as per the Law on Tax Administration; granted gradual tax debt payment within but not exceeding 12 months from the start of the tax enforcement period.
Gradual tax debt payment will be considered by the head of the tax administration directly managing the taxpayer based on the taxpayer's proposal and must be guaranteed by a credit institution.
Case (6) Failure to implement enforcement measures for taxpayers with overdue customs fees and transit service charges.
Case (7) Individuals who are the legal representatives of taxpayers must fulfill the tax obligations of the coerced entity before leaving the country and may be subject to temporary exit suspension as per immigration regulations.
What is the authority to decide tax enforcement decisions in Vietnam?
Based on Article 126 of the 2019 Law on Tax Administration stipulating as follows:
Authority to decide tax enforcement decisions
1. The head of the tax administration, Director General of the Anti-Smuggling Department under the General Department of Customs, Director General of the Post-Clearance Audit Department is authorized to issue decisions applying Tax enforcement measures specified at points a, b, c, d, dd, and e, Clause 1, Article 125 of this Law.
2. The revocation of enterprise registration certificate, business registration certificate, cooperative registration certificate, investment registration certificate, establishment and operation license, and practicing certificate prescribed in point g, Clause 1, Article 125 of this Law shall be conducted according to legal regulations.
Thus, according to the above regulations, the authorized individuals include the Head of the Tax Administration, Director General of the Anti-Smuggling Department under the General Department of Customs, and Director General of the Post-Clearance Audit Department authorized to make decisions to apply Tax enforcement measures for specified at points a, b, c, d, dd, and e, Clause 1, Article 125 of the 2019 Law on Tax Administration.
