What is risk management information in tax administration in Vietnam? What information sources are risk management information collected from?

What is risk management information in tax administration in Vietnam?

Based on Clause 2, Article 3 of Circular 31/2021/TT-BTC stipulated as follows:

Interpretation of terms

1. Applying risk management in tax administration involves employing business procedures, principles, measures, techniques on risk management, and results of tax law compliance evaluation, taxpayers' risk levels to decide on implementing business measures in tax management.

2. Risk management information is tax-related and tax-related information collected and processed to serve risk management application in tax administration.

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Thus, pursuant to the above regulation, risk management information in tax administration is tax-related and tax-related information collected and processed to serve the application of risk management in tax administration.

What is risk management information in tax administration in Vietnam? What information sources are risk management information collected from? (Image from the Internet)

Vietnam: What information sources are risk management information collected from?

Based on Clause 2, Article 4 of Circular 31/2021/TT-BTC stipulated as follows:

Principles of risk management

1. Applying risk management ensures the effectiveness and efficiency of tax management; encourages, facilitates taxpayers to voluntarily comply with tax and tax management laws while preventing, detecting, and promptly processing violations of tax and tax management laws.

2. Risk management information is collected from internal and external sources of the tax authority (including foreign information) as prescribed by law; centrally managed at the General Department of Taxation through the information technology application system, processed, shared, and provided to tax authorities at all levels, other state management agencies to serve tax management purposes as prescribed by law.

3. The evaluation and classification of tax law compliance and taxpayers' risk levels are performed automatically, periodically, using one or a combination of the methods stipulated in this Circular based on legal regulations, tax management procedures, measures, according to the segment of taxpayers, criteria stipulated in this Circular and taxpayer data.

4. Based on the evaluation results of tax law compliance, classification of taxpayers' risk levels, available information on the tax management applications of the tax authority, signs of violations, other risk signs provided at the time of decision, the tax authority executes:

a) Decides on inspection, audit, supervision, and applies appropriate business measures.

b) Develops an overall compliance enhancement plan suitable to the tax authority’s resources based on the analysis results of the behavior nature, causes, and scale of each tax law compliance level, risk level.

5. In cases where the provisions of law, this Circular, and regulations, guidance on risk management are properly implemented, tax officials are exempt from personal liability as prescribed by law.

6. In cases where the risk management application encounters issues or does not meet the risk management application requirements as stipulated in this Circular, risk management is executed manually by approving proposal documents or signed issuance documents of authorized individuals applying tax management business measures as prescribed in the Law on Tax Management and guiding documents.

7. In cases where changes in information lead to changes in the evaluation results of tax law compliance and the classification of taxpayers' risk levels, and the risk management application does not automatically adjust compliance levels and risk levels, the update of evaluation result changes is manually executed by an official after approval by the authorized person.

8. The results of applying business measures corresponding to the risk rating levels must be fully, accurately updated into the tax authority's tax management support applications or risk management application for each specific case, serving the perfection and execution of tax law compliance evaluation and classification of taxpayer risk in subsequent periods.

Thus, pursuant to the above regulation, risk management information is collected from the following sources:

[1] Internal and external sources of the tax authority (including foreign information) as prescribed by law;

[2] Centrally managed source at the General Department of Taxation through the information technology application system and processed, shared, provided to tax authorities at all levels, other state management agencies to serve tax management purposes as prescribed by law.

What are procedures for tax risk management information in Vietnam?

Based on Article 6 of Circular 31/2021/TT-BTC, the processing of tax risk management information is as follows:

Risk management information is collected, processed as stipulated in Chapter II of Circular 31/2021/TT-BTC.

In cases where false or incomplete declared information is detected during the risk analysis process, taxpayers are responsible for providing, explaining, or supplementing information, documents as requested and within the deadline notified by the tax authority to ensure accurate evaluation of tax law compliance and classification of taxpayers' risk levels.