What are risk management information in tax administration operations in Vietnam?

What are risk management information in tax administration operations in Vietnam?

According to the provisions of Clause 2, Article 4 of Circular 31/2021/TT-BTC, risk management information is collected from internal and external sources of tax authorities (including information from abroad) as prescribed by law; is managed centrally at the General Department of Taxation through an information technology application system and is processed, shared, and provided to tax authorities at all levels, other state management agencies to serve the purpose of tax management in accordance with the law.

Referring to Article 7 of Circular 31/2021/TT-BTC, risk management information in tax administration operations includes:

(1) Information within tax authorities

- Information on business registration, taxpayer registration; personal information of founding members, owners, and legal representatives of taxpayers; registration and use of labor; information on the taxpayer's status; the number of times business registration, taxpayer registration information has changed; the capital contribution status of members; main business sectors;

- Information on tax declaration files; tax payments; tax debts; tax incentives, exemptions, reductions; tax payment extensions; installment tax payments; tax refunds; registration, management, use of invoices, receipts; complaint and denunciation information; information on inspection results and post-inspection handling; information on related-party transactions;

- Other information.

(2) Information collected from relevant state management agencies, organizations, and individuals who are required to provide it

- Information on taxpayers collected from state management agencies, organizations, and relevant individuals according to the provisions of Article 26 of Decree 126/2020/ND-CP, Article 27 of Decree 126/2020/ND-CP, Article 30 of Decree 126/2020/ND-CP or as stipulated by current regulations;

- Information from abroad, provided by international organizations under obligations in international treaties related to taxation to which Vietnam is a member.

(3) Other information related to taxpayers.

What are risk management information in tax administration operations in Vietnam? (Image from Internet)

Vietnam: How many sources of information to be collected in tax administration operations are there?

According to Clause 1, Article 8 of Circular 31/2021/TT-BTC, the sources collecting risk management information in tax administration operations include:

- From the information system within tax authorities;

- From cooperation with agencies and units under the Ministry of Finance and other ministries and branches related to exchanging and providing information for tax management purposes;

- From coordinating information exchange with tax authorities and competent authorities abroad as stipulated by law;

- Receiving information from state agencies, organizations, and individuals as prescribed by law;

- Information related to taxpayers' activities collected during tax management;

- Purchasing information as prescribed by the Law on Tax Administration and guiding documents.

To be specific, Clause 10, Article 19 of Law on Tax Administration 2019 stipulates that tax authorities have the right to purchase information, documents, and data from domestic and international providers to serve tax management purposes; pay collection agency costs from collected tax money or from the tax authority's budget as regulated by the Government of Vietnam.

- Receiving tax-related information from abroad, provided by international organizations under obligations in international treaties of which Vietnam is a member;

- From other relevant information sources as prescribed by law.

Thus, there are a total of 8 sources collecting risk management information in tax administration operations.

What are forms of collection for risk management information in tax administration operations in Vietnam?

According to Clause 2, Article 8 of Circular 31/2021/TT-BTC, risk management information in tax administration operations is collected in the following forms:

- Provided and exchanged in electronic data, electronic documents, emails, through the General Department of Taxation's electronic information portal; messages and calls to official phone numbers published by the tax authority;

- Provided and exchanged in writing, cable, telegraph, fax, paper documents;

- Direct exchange based on recorded minutes, confirmed by the parties involved; appointing representatives to work, verify, collect information, documents; organizing conferences and other forms.

risk management information in tax administration operations after being collected will be processed as prescribed in Clause 3, Article 8 of Circular 31/2021/TT-BTC as follows:

- Assess the relevance of the information to the needs and purposes of information use; consider the reliability and accuracy of the information;

- Classify, arrange, and store information from sources according to each group of information for exploitation and analysis;

- Analyze information, consider, and detect factors forming information content for risk management;

- Synthesize and link related factors detected through analysis to clarify the content and value of the collected information for assessing the risk level and compliance with tax laws of taxpayers.