What are the rights and obligations of the taxpayer subject to tax inspection in Vietnam?

What are the rights and obligations of the taxpayer subject to tax inspection in Vietnam?

Under Article 118 of the Tax Administration Law 2019, the rights and obligations of inspected entities include:

- The inspected entity has the right to:

+ Provide explanation for the issues relevant to the content of the inspection;

+ File complaints against the decisions and actions made by the inspection decision issuer, the chief or member of the inspectorate during the inspection; file complaints against the conclusion or post-inspection decision in accordance with regulations of law on complaints; the post-inspection decision still has to be implemented while the complaint is being handled;

+ Receive the inspection record and request explanation for the contents thereof;

+ Refuse to provide information and documents that are not relevant to the inspection; information and documents that are state secrets, unless otherwise prescribed by law;

+ Claim damages in accordance with law;

+ Report violations committed by the head of the tax authority, the chief or member of the inspectorate in accordance with law.

- The inspected entity has the responsibility to:

+ Comply with the tax inspection decision;

+ Fully and accurately provide information and documents requested by the tax inspection decision issuer, the chief or member of the inspectorate and take legal responsibility for the accuracy of the information and documents provided;

+ Comply with requests, conclusions and handling decisions of the inspection decision issuer, the chief and member of the inspectorate, and competent authorities;

+ Sign the inspection record.

What are the rights and obligations of the taxpayer subject to tax inspection in Vietnam? (Image from the Internet)

Who has the power to issue tax inspection decisions in Vietnam?

Under Clause 1, Article 114 of the Tax Administration Law 2019, the tax inspection decision is regulated as follows:

 Tax inspection decision

1. Heads of tax authorities at all levels are entitled to issue tax inspection decisions.

2. The tax inspection decision shall contain:

a) Legal basis for the tax inspection;

b) The inspected entity, scope and objectives of the inspection;

c) Duration of the inspection;

d) The chief and members of the inspectorate.

3. The tax inspection decision shall be sent to the inspected entity within 03 working days from the day on which it is signed.

4. The tax inspection decision shall be announced within 15 days from its issuance date.

The heads of tax authorities at all levels will issue tax inspection decisions.

What are the duties and powers of tax inspection decision issuers in Vietnam?

Under Article 116 of the Tax Administration Law 2019, tax inspection decision issuers in Vietnam have the following duties and powers:

- Instructs and supervise the inspectorate’s implementation of the tax inspection decision;

- Request the inspected entity to provide information, documents, reports and explanation for relevant issues; request other organizations and individuals to provide relevant information and documents they have;

- Request professional opinions on the issuers relevant to the content of the inspection;

- Order suspension or request a competent person to order suspension of an operation if it is deemed to cause material damage to interests of the State, the lawful rights and interests of other organizations and individuals;

- Take actions or request a competent person to take actions and supervise the implementation of such actions;

- Settle complaints (if any) against the chief and members of the inspectorate;

- Suspend or replace the chief or member of the inspectorate if he/she fails to satisfy the requirements for participation in the inspection, commits violations of law or is found related to the inspected entity, or cannot participate in the inspection for other reasons;

- Draw a conclusion about the inspection;

- Trance the case to a criminal investigation authority if a criminal offence is suspected, and send a written notice to the People’s Procuracy at the same level;

- Implement the measures specified in Articles 121, 122 and 123 of the Tax Administration Law 2019;

- Request credit institutions where the inspected entity opens their accounts to freeze such accounts if there are reasonable grounds for suspecting that the inspected entity attempts to liquidate their assets in a manner that defies the competent authority’s decision to confiscate money or assets.

When performing the duties and powers specified above, tax inspection decision issuers shall be held responsible for their decisions.