What is the penalty for rejecting a tax inspection or examination decision in Vietnam?

What is Tax Inspection and Examination in Vietnam?

According to Clause 3, Article 4 of the Regulation on Supervising the Activities of the Inspectorates of Taxation issued together with Decision 1614/QD-TCT 2020, it is stipulated:

Tax inspection and examination are activities conducted by the Tax Authority at the taxpayer's office or inspection activities conducted by the Tax Authority at the Tax Authority's office.

What is the penalty for rejecting a tax inspection or examination decision in Vietnam?

Based on Clause 1, Article 15 of Decree 125/2020/ND-CP the following is stipulated:

Penalties for violations of compliance with tax inspection, examination decisions, and enforcement of tax administrative decisions

1. A fine ranging from VND 2,000,000 to VND 5,000,000 shall be imposed for any of the following acts:

a) rejecting tax inspection, examination decisions, or enforcement of tax administrative decisions delivered and sent by the tax authorities in accordance with the law;

b) Failing to comply with tax inspection, examination decisions beyond the deadline of 03 working days from the day the competent authority's decision must be complied with;

c) Providing tax-related records, documents, invoices, vouchers, and accounting books beyond the 06 working hours deadline from the time the competent authority's request is received during an inspection or examination at the taxpayer's office;

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Based on Clause 4, Article 7 of Decree 125/2020/ND-CP the following is stipulated:

Forms of penalties, remedial measures, and principles for applying fines in administrative penalties for taxes and invoices

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4. Principles for applying fines

a) The fines stipulated in Articles 10, 11, 12, 13, 14, 15, Clauses 1 and 2 of Article 19, and Chapter III of this Decree are fines applied to organizations.

For taxpayers being households or household businesses, fines are applied as they are for individuals.

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Based on Clause 5, Article 5 of Decree 125/2020/ND-CP the following is stipulated:

Principles for administrative penalties for taxes and invoices

1. Administrative penalties for taxes and invoices are executed in accordance with the law on tax administration and the law on handling administrative violations.

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5. For the same administrative violation regarding taxes and invoices, the monetary penalty for organizations is twice that applied to individuals, except for the penalties stipulated in Articles 16, 17, and 18 of this Decree.

For the act of rejecting tax inspection or examination decisions delivered and sent by the tax authorities in accordance with the law:

- Organizations: Fines ranging from VND 2,000,000 to VND 5,000,000.

- Individuals, households, household businesses: Fines ranging from VND 1,000,000 to VND 2,500,000.

Penalty for rejecting a tax inspection or examination decision in Vietnam (Image from the Internet)

What are the principles for supervising the activities of the Inspectorates of Taxation in Vietnam?

According to Article 5 of the Regulation on Supervising the Activities of the Inspectorates of Taxation issued together with Decision 1614/QD-TCT 2020, it is stipulated as follows:

- The supervision of the activities of the Inspectorates of Taxation at the taxpayer's office is carried out regularly from the day the tax inspection, examination decision is announced until the conclusion of the inspection, examination period at the taxpayer's office.

- Comply with the law, ensuring accuracy, objectivity, transparency, democracy, and promptly.

- Ensure the confidentiality of information and documents related to the activities of the Inspectorates of Taxation; do not unlawfully intervene in the activities of the Inspectorates of Taxation.

- Supervisors may concurrently supervise the activities of multiple Inspectorates of Taxations.

- The appointment of supervisors is carried out under the principle that the Head of the Supervisory Team or the supervisor is the person assigned by the person making the tax inspection, examination decision to supervise the activities of the Inspectorates of Taxation, having a rank (or position) higher or equivalent to the rank (or position) of the Head of the Inspectorates of Taxation.

- The supervision of the activities of the Inspectorates of Taxation at the taxpayer's office is implemented for all Inspectorates of Taxations and is issued according to the decision on supervising the activities of the Inspectorates of Taxation.

In addition to supervision according to the decision on supervising the activities of the Inspectorates of Taxation, supervision is also carried out in accordance with regulations on functions, tasks, powers, and authority on administrative management decentralization and the working regulations at different Tax Authority levels.

- The supervision of the activities of the Tax Examination Team at the Tax Authority's office is implemented according to regulations on functions, tasks, powers, and authority on administrative management decentralization and the working regulations at different Tax Authority levels.