Vietnam: Shall the operation of tax inspectorates be supervised simultaneously?

Who supervises the activities of the tax inspectorate in Vietnam?

Based on the provisions in Clause 1, Article 5 of the Supervision Regulation of the Tax inspectorate issued with Decision 1614/QD-TCT in 2020, the supervisor is explained as:

- The person who issues the tax inspection decision;

- The leader of the department directly managing the leader of the tax inspectorate;

- The supervision team or official assigned by the person who issues the tax inspection decision to monitor the activities of the Tax inspectorate.

Shall the operation of tax inspectorates be supervised simultaneously?

Based on the provisions in Article 5 of the Supervision Regulation of the Tax inspectorate issued with Decision 1614/QD-TCT in 2020 regarding the principles of supervising the activities of the Tax inspectorate as follows:

Supervision Principles

1. The supervision of activities of the Tax inspectorate at the taxpayer’s premises is conducted regularly from the date the tax inspection decision is announced to the date the inspection period ends at the taxpayer’s premises.

2. Comply with the law, ensure accuracy, objectivity, transparency, democracy, and promptness.

3. Ensure the confidentiality of information and documents related to the activities of the Tax inspectorate; do not illegally interfere in the activities of the Tax inspectorate.

4. The supervisor may simultaneously monitor the activities of multiple Tax inspectorates.

5. The assignment of a supervisor is carried out according to the principle that the team leader of the supervision team or the supervisor is the person assigned by the person issuing the tax inspection decision to perform the task of supervising the activities of the Tax inspectorate, holding a higher or equivalent rank (or position) compared to the leader of the Tax inspectorate.

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Based on the above provision, a supervisor can simultaneously monitor the activities of multiple Tax inspectorates.

Vietnam: Shall the operation of tax inspectorates be supervised simultaneously? (Image from the Internet)

What are the duties and powers of the supervised Tax inspectorate in Vietnam?

Pursuant to Article 7 of the Supervision Regulation of the Tax inspectorate issued with Decision 1614/QD-TCT in 2020, in supervision, the supervised person has the following duties and powers:

[1] Provide promptly, fully, accurately, objectively information and documents related to the supervision content as prescribed in Article 8 of this Regulation. Specifically:

- For inspection activities: Prepare and submit the Tax Inspection Plan according to Form No. 19/QTTTr (issued with Decision 2605/QD-TCT in 2016);

For examination activities: Prepare and submit the approved inspection content.

- Record the inspection log according to the management, utilization, and operation procedure of the Inspection Log application;

- In cases of issuing documents to exercise rights in tax inspection activities, report to the person issuing the tax inspection decision and simultaneously send it to the Supervision Team, official assigned the supervision task of the Tax inspectorate;

- Other information and documents related to the supervision content as requested by the supervisor.

[2] Explain and clarify issues related to the supervision content as requested by the supervisor.

[3] Timely inform the supervisor of difficulties, obstacles in the activities of the Tax inspectorate to have handling measures within authority or make recommendations to the person issuing the tax inspection decision for handling.

[4] Refuse to provide information, documents that are not within the scope or content of supervision and clearly explain the reason for not providing in writing.

[5] The leader of the Tax inspectorate reports to the person issuing the tax inspection decision in cases where the supervisor violates the law in executing supervision duties.

[6] When reporting tax inspection results, the leader of the Tax inspectorate shall report to the supervisor, including specific data as follows:

- Detailed results of inspection according to each risk content analyzed before inspection at the taxpayer’s premises; including criteria (with high risk points) for developing inspection plans and criteria for risk analysis before issuing the Tax Inspection Decision at the taxpayer’s premises,

- Detailed results of inspection according to risk analysis content based on Vertical and Horizontal Analysis Tables, Balance Sheet, Profit and Loss Statement, and other data before issuing the Tax Inspection Decision at the taxpayer’s premises,

- Information collected from sources: competent Authorities, Complaints, Media, Press,....(if any),

- Other content discovered during the inspection at the taxpayer’s premises (if any).

[7] Send information exchange letters according to Form No. 06-TTKT issued with this Regulation to taxpayers (at the time of announcing the Tax Inspection Decision) and report to the supervisor regarding this content.