What is a tax inspection? When will a tax inspection be conducted in Vietnam?

What is a tax inspection? When will a tax inspection be conducted in Vietnam?

According to Clause 3, Article 4 of the Regulations on monitoring the activities of the Tax Inspection and Examination Team issued together with Decision 1614/QD-TCT in 2020, tax inspection is the inspection activity of the Tax Authority at the taxpayer’s headquarters or the examination activity of the Tax Authority at the Tax Authority’s headquarters.

The cases of tax inspection include: (According to Article 113 of the Law on Tax Administration 2019)

- When there are signs of tax law violations.

- To resolve complaints, denunciations, or to take measures against corruption.

- At the request of tax administration according to the results of risk classification in tax management.

- At the request of the State Audit, the conclusions of the State Inspectorate, and other competent authorities.

How is the tax inspection decision regulated?

According to Article 114 of the Law on Tax Administration 2019, the tax inspection decision is regulated as follows:

- Heads of tax administration agencies at various levels have the authority to issue tax inspection decisions.

- The tax inspection decision must include the following main contents:

+ Legal basis for tax inspection;

+ Subjects, contents, scope, and duties of tax inspection;

+ Duration of the tax inspection;

+ Head and members of the tax inspection team.

- No later than 3 working days from the signing date, the tax inspection decision must be sent to the inspection subjects.

- The tax inspection decision must be announced no later than 15 days from the date of issuance.

What is the duration of the tax inspection?

According to Article 115 of the Law on Tax Administration 2019, the duration of the tax inspection is regulated as follows:

- The duration of the tax inspection is implemented according to the provisions of the Inspection Law 2022. The duration of the inspection is calculated as the period performing the inspection at the taxpayer's headquarters from the announcement date of the inspection decision to the end date of the inspection at the taxpayer's headquarters.

- If necessary, the tax inspection deciders may extend the duration of the tax inspection according to the provisions of the Inspection Law 2022. The extension of the tax inspection duration is decided by the person issuing the inspection decision.

What is a tax inspection? In what cases will a tax inspection be conducted in Vietnam? (Image from the Internet)

What are the tasks and powers of the tax inspection deciders in Vietnam?

According to Article 116 of the Law on Tax Administration 2019, the tax inspection deciders has the following tasks and powers:

- Direct, inspect, and supervise the tax inspection team to ensure they are carrying out the content and tax inspection decision correctly;

- Request the inspection subjects to provide information, documents, written reports, and explanations related to the tax inspection content; request agencies, organizations, and individuals possessing information and documents related to the tax inspection content to provide those information and documents;

- Call for assessment on issues related to the tax inspection content;

- Temporarily suspend or recommend suspending activities deemed to cause serious harm to the interests of the State or the legal rights and interests of agencies, organizations, or individuals;

- Decide on handling according to their authority or recommend competent persons to handle inspection results, and urge the implementation of handling decisions on tax inspection;

- Resolve complaints and denunciations related to the responsibilities of the head of the tax inspection team and other members of the tax inspection team;

- Suspend or change the head of the tax inspection team and team members who fail to meet the inspection requirements and tasks, have unlawful conduct, or are found to be related to the inspection subjects, or for other objective reasons preventing them from performing their inspection tasks;

- Conclude on the tax inspection content;

- Transfer the case files of legal violations to the investigating agency when signs of a crime are detected and simultaneously notify the same-level Procuracy in writing;

- Apply measures stipulated in Articles 121, 122, and 123 of the Law on Tax Administration 2019;

- Request credit institutions where the inspection subjects have accounts to freeze those accounts to serve the inspection when there is a basis to believe that the inspection subjects are dispersing assets and not complying with recovery decisions of the head of the State Inspectorate, the head of the agency assigned to carry out specialized inspection functions, or the head of the state management agency.

When performing the above tasks and powers, the tax inspection deciders must be responsible before the law for their decisions.