What are the regulations on impoundment of documents and items relevant to tax evasion in Vietnam?

What are the regulations on impoundment of documents and items relevant to tax evasion in Vietnam?

Under Article 122 of the Law on Tax Administration 2019, the impoundment of documents and items relevant to tax evasion in Vietnam is conducted as follows:

- The head of the tax authority or the chief of the inspectorate shall issue the decision to impound documents and items relevant to tax evasion.

- The impoundment shall be carried out when it is necessary to clarify the basis for taking actions against tax evasion.

- The head of the tax authority or the chief of the inspectorate shall issue the decision to impound documents and items relevant to tax evasion. Within 24 hours from the beginning of the impoundment, the chief of the inspectorate shall request the head of the tax authority to issue an impoundment decision. Such decision shall be issued by a competent person within 08 working hours from the receipt of the request. If the competent person rejects the request, the chief of the inspectorate shall return the documents and items within 08 working hours after the competent person gives the rejection.

- In case of impoundment, the chief of the inspectorate shall issue a record. The record shall specify the names, quantities, categories of the documents and items; bears the signature of the impoundment decider and the person responsible for management of the impounded documents and items. The impoundment decider has the responsibility to protect the impounded documents and items and take legal responsibility if they are lost, swapped or damaged.

In case the documents or items need sealing, they shall be sealed in the presence of their owner or, if the owner is not present, the representative of the owner’s family or representative of the organization and representative of the commune authority and a witness.

- Storage of impounded Vietnamese currency, foreign currencies, gold, silver, gemstones, precious metals and other items that require special management shall comply with regulations of law. In case of impoundment of perishable items, the impoundment decider shall issue an impoundment record. Collected money shall be sent to an impoundment account at the State Treasury to ensure collection of tax, late payment interest and fines.

- Within 10 working days from the impoundment date, the impoundment decider shall handle the impounded documents or items in accordance with the handling decision or return them to their owner if they are not confiscated. The impoundment duration may be extended in complicated cases. Nevertheless, the duration must not exceed 60 days. The extension of impoundment duration shall be decided by the competent person mentioned in Clause 1 of this Article.

- The tax authority shall give 01 copy of the impoundment decision, impoundment record and the handling decision to the document or item owner.

What are the regulations on impoundment of documents and items relevant to tax evasion in Vietnam? (Image from Internet)

What is the case where a search of premises where documents and items relevant to tax evasion are stored in Vietnam must not be carried out?

Under Clause 4 of Article 123 of the Law on Tax Administration 2019, a search of premises must not be carried out at night, during public holidays, during the premises owners’ familial events, unless in flagrante delicto (caught red handed). The reasons must be written in the record.

Who has the power to decide the search of premises where documents and items relevant to tax evasion are stored in Vietnam?

Under Clause 1 of Article 123 of the Law on Tax Administration 2019:

Search of premises for documents and items relevant to tax evasion

1. The head of the tax authority shall decide search of premises for documents and items relevant to tax evasion. In case of search of a home, it has to be approved in writing by a competent person as prescribed by law.

2. The search of premises shall be carried out when there are reasonable grounds that documents and items relevant to tax evasion are hidden in such premises.

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The head of the tax authority shall decide the search of premises where documents and items relevant to tax evasion are stored in Vietnam.