When is a tax inspection conducted in Vietnam?

When is a tax inspection conducted in Vietnam?

According to the provisions of Article 113 of the Law on Tax Administration 2019, tax inspection cases include:

- When there are signs of violations of tax laws.

- To resolve complaints, denunciations, or implement anti-corruption measures.

- As required by tax administration work based on the results of risk classification in tax administration.

- As recommended by the State Audit, conclusions of the State Inspectorate, and other competent authorities.

When is a tax inspection conducted in Vietnam? (Image from the Internet)

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

Pursuant to Article 114 of the Law on Tax Administration 2019, it is stipulated as follows:

Tax Inspection Decisions

1. The heads of tax administration agencies at all levels have the authority to issue tax inspection decisions.

2. The tax inspection decision must contain the following main contents:

a) Legal grounds for the tax inspection;

b) Subjects, contents, scope, and tasks of the tax inspection;

c) Duration of the tax inspection;

d) Head of the tax inspection team and members of the tax inspection team.

3. The tax inspection decision must be sent to the inspected entity no later than 03 working days from the date of signing.

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

Thus, the heads of tax administration agencies at all levels have the authority to issue tax inspection decisions.

When shall a re-inspection be conducted in Vietnam?

According to Article 120 of the Law on Tax Administration 2019, it is stipulated as follows:

Re-inspection in Tax Inspection Activities

1. The authority to decide on a re-inspection of a concluded case but with discovered signs of law violations is regulated as follows:

a) The Chief Inspector of the Ministry of Finance decides on a re-inspection of a case concluded by the Director General within the scope and authority of the Ministry of Finance when assigned by the Minister of Finance;

b) The Director General decides on a re-inspection of a case concluded by the Director under the General Department;

c) The Director decides on a re-inspection of a case concluded by the Head of the Sub-Department under the Department;

d) The re-inspection decision includes the contents stipulated in Article 114 of this Law. The re-inspection decision must be sent to the inspected entity no later than 03 working days from the date of signing the re-inspection decision. The re-inspection decision must be announced no later than 15 days from the date of signing and must be documented by the inspection team.

2. The re-inspection is conducted upon the occurrence of one of the following grounds:

a) There are serious violations in procedures during the inspection process;

b) There are errors in the application of the law when concluding the inspection;

c) The inspection conclusion is inconsistent with the evidence collected during the inspection or there are signs of high risk according to risk assessment criteria;

d) The decision-maker of the inspection, the head of the inspection team, or members of the inspection team intentionally altered the case file or intentionally made unlawful conclusions;

dd) There are serious signs of law violations by the inspected entity that were not fully detected during the inspection.

3. The statute of limitations for re-inspection, the duration of the re-inspection are regulated as follows:

a) The statute of limitations for re-inspection is 02 years from the date of signing the inspection conclusion;

b) The duration of the re-inspection is conducted as stipulated in Article 115 of this Law.

4. When conducting a re-inspection, the decision-maker, the head of the inspection team, and members of the inspection team perform their tasks and powers as stipulated in Articles 116 and 117 of this Law.

5. The re-inspection conclusion and the disclosure of the re-inspection conclusion are stipulated as follows:

a) The re-inspection conclusion is implemented according to the provisions of Article 119 of this Law. The content of the re-inspection conclusion must clearly identify the nature, extent of violations, causes, and responsibilities of the agency, organization, or individual that conducted the inspection, concluded the inspection, and proposed handling measures.

Within 15 days from the date of signing the re-inspection conclusion, the decision-maker must send the re-inspection conclusion to the head of the same level state management agency and the superior state inspection agency;

b) The disclosure of the re-inspection conclusion is conducted in accordance with the law on inspection.

Thus, a re-inspection is conducted when one of the following grounds exists:

- Serious procedural violations during the inspection process;

- Errors in the application of the law when concluding the inspection;

- The inspection conclusion is inconsistent with the evidence collected during the inspection or there are signs of high risk according to risk assessment criteria;

- The decision-maker of the inspection, the head of the inspection team, or members of the inspection team intentionally altered the case file or intentionally made unlawful conclusions;

- There are serious signs of law violations by the inspected entity that were not fully detected during the inspection.