Shall the tax authority issue a tax liability imposition decision in case failing to submit supplementary tax documents in Vietnam?

Shall the tax authority issue a tax liability imposition decision in case failing to submit supplementary tax documents in Vietnam?

Pursuant to the provisions of Article 14 of Decree 126/2020/ND-CP, the tax authority shall assess the amount of tax payable by taxpayers in the following cases:

- Failure to register as a taxpayer in accordance with Article 33 of the Law on Tax Administration 2019.

- Failure to file taxes or filing taxes incompletely, untruthfully, or inaccurately according to Article 42 of the Law on Tax Administration 2019.

- Failing to submit supplementary tax documents as required by the tax management authority or supplementing tax documents incompletely, untruthfully, or inaccurately, affecting the basis of tax calculation.

- Not reflecting or inaccurately reflecting the figures on accounting books to determine the tax obligation.

- Failure to present accounting books, invoices, documents, and necessary materials related to determining factors for tax calculation; determining the tax payable within the stipulated time or after the tax inspection, audit duration at the taxpayer's headquarters.

- Failure to comply with the tax inspection decision within 10 working days from the date of signing the decision, except in cases of deferred inspection as regulated.

- Failure to comply with the tax audit decision within 15 days from the date of signing the decision, except in cases of deferred audit as regulated.

- Engaging in the purchase, sale, exchange, and accounting of goods, services not according to the normal market transaction value.

- Purchasing, exchanging goods, services using illegal invoices, using illegal invoices while goods, services are real as confirmed by competent inspection, audit, investigation agencies and have been declared as revenue, tax-deductible expenses.

- Showing signs of absconding or dispersing assets to evade tax obligations.

- Conducting transactions that do not reflect the economic substance, not reflecting actual occurrences to reduce tax obligations.

- Failing to comply with regulations on the obligation to declare, determine prices for transaction relationships or not providing information in accordance with regulations on tax management for enterprises with related transactions.

Shall the tax authority issue a tax liability imposition decision in case failing to submit supplementary tax documents in Vietnam? (Image from Internet)

Who has the authority to issue a tax liability imposition decision in case of failing to submit supplementary tax documents in Vietnam?

According to the provision in Clause 1, Article 16 of Decree 126/2020/ND-CP regarding this matter:

Authority, Procedures, and tax liability imposition Decision

1. Authority to Assess Tax

The General Director of the General Department of Taxation; the Director of the Tax Department; the Head of the Tax Sub-department have the authority to assess tax.

...

The following individuals have the authority to assess tax:

[1] The General Director of the General Department of Taxation

[2] The Director of the Tax Department

[3] The Head of the Tax Sub-department

Thus, according to the above regulations, [1] [2] and [3] are the individuals with the authority to assess tax in cases of failure to submit supplementary tax documents.

What are regulations on tax liability imposition decision issued by the tax auhority in Vietnam?

According to Clause 3, Article 16 of Decree 126/2020/ND-CP regarding the tax authority's tax liability imposition decision:

Authority, Procedures, and tax liability imposition Decision

...

3. tax liability imposition Decision

a) When assessing tax, the tax authority must issue a tax liability imposition decision according to Form No. 01/ADT in Appendix III issued with this Decree and send it to the taxpayer within 03 working days from the date of signing the tax liability imposition decision;

In case the taxpayer is obliged to pay tax according to the tax authority's notice, the tax authority is not required to issue a tax liability imposition decision under this clause.

b) The taxpayer must pay the assessed tax amount according to the tax management authority's tax handling decision. If the taxpayer disagrees with the tax assessed by the tax authority, the taxpayer is still required to pay that tax amount while having the right to request an explanation or file a complaint, initiate a lawsuit regarding the tax liability imposition.

In which, the tax authority's tax liability imposition decision is executed according to Form No. 01/ADT Download.

Therefore, when assessing tax, the tax authority must issue a tax liability imposition decision as stated above and send it to the taxpayer within 03 working days from the signing of the tax liability imposition decision.

- In cases where the taxpayer is required to pay tax according to the tax authority's notice, the tax authority is not required to issue a tax liability imposition decision as regulated in this clause.

- Taxpayers must pay the assessed tax amount according to the tax management authority’s tax handling decision.

In cases where the taxpayer does not agree with the tax amount assessed by the tax authority, the taxpayer is still required to pay that tax amount and has the right to request the tax authority for explanation or file a complaint, initiate a lawsuit regarding the tax liability imposition.

Additionally, the tax liability imposition is conducted according to the procedures in Clause 2, Article 16 of Decree 126/2020/ND-CP regarding tax liability imposition procedures as follows:

- When assessing tax, the tax authority must notify the taxpayer in writing regarding the tax liability imposition and issue a tax liability imposition decision. The tax liability imposition decision must clearly state the reasons for tax liability imposition, the basis for tax liability imposition, the assessed tax amount, and the due date for tax payment.

- In cases where the tax authority conducts tax liability imposition through tax inspections, audits, the reasons, basis, assessed tax amount, and deadline for tax payment must be documented in the tax inspection, audit records, and tax handling decision of the tax authority.

- In cases where taxpayers are subject to tax liability imposition according to regulations, the tax authority shall impose administrative sanctions and calculate late payment interest in accordance with the law.