When shall falsifying land prices lead to prosecution for tax evasion in Vietnam?
When shall falsifying land prices lead to prosecution for tax evasion in Vietnam?
The act of falsifying land prices can be understood as using contrived contracts where the sale price stated on the contract is less than the actual sale price to reduce the payable tax amount.
According to point đ, clause 1, Article 200 of the Criminal Code 2015 (amended by point a, clause 47, Article 1 of the Law amending the Criminal Code 2017), it is regulated as follows:
Tax Evasion Offense
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- Any person who commits one of the following acts to evade tax with an amount ranging from 100,000,000 VND to under 300,000,000 VND, or under 100,000,000 VND but has been administratively penalized for tax evasion or convicted of this crime or other crimes as mentioned in Articles 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309, and 311 of this Code, who have not yet had their criminal records expunged and continue to violate, shall be fined from 100,000,000 VND to 500,000,000 VND or sentenced to imprisonment from 03 months to 01 year:
a) Failing to submit taxpayer registration documents; failing to submit tax returns; submitting tax returns 90 days past the deadline or past the extended deadline as prescribed by law;
b) Failing to record in accounting books entries related to determining the payable tax amount;
c) Failing to issue invoices when selling goods and services or recording a sales invoice value lower than the actual payment value of goods and services sold;
d) Using unlawful invoices or documents to account for goods and raw materials that alter tax liabilities, reduce the payable tax amount, increase exempted tax, or increase deductible or refundable tax;
đ) Using other unlawful documents or evidence to wrongly determine the payable tax amount or refundable tax;
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From the above regulations, it can be inferred that falsifying land prices can be prosecuted for tax evasion in the following two cases:
- Falsifying land prices to evade tax with an amount from 100,000,000 VND to under 300,000,000 VND
- Falsifying land prices to evade tax with an amount under 100,000,000 VND but having been administratively sanctioned for tax evasion or convicted of this crime or any other crimes as listed in Articles 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309, and 311 of the Criminal Code 2015 (amended by the Law amending the Criminal Code 2017), not yet having their criminal records expunged while continuing to violate, facing fines from 100,000,000 VND to 500,000,000 VND or imprisonment from 03 months to 01 year.
When shall falsifying land prices lead to prosecution for tax evasion in Vietnam? (Image from Internet)
What are the rights of taxpayers in Vietnam?
According to Article 16 of the Tax Administration Law 2019, the rights of taxpayers include:
- Receiving support and guidance on tax payment; providing information and documents to fulfill tax obligations and rights.
- Receiving documents related to tax obligations from competent authorities during audits, inspections, and accounting investigations.
- Requesting tax authorities to explain tax calculations, tax determinations; asking for inspection of the quantity, quality, and types of import and export goods.
- Maintaining privacy of information, except for information required by authorized state agencies or publicly stated tax information as prescribed by law.
- Enjoying tax incentives and refunds according to tax laws; being informed of the tax refund process, the amount that cannot be refunded, and the legal grounds for non-refund.
- Signing contracts with service providers to handle tax procedures, customs brokerage services for tax agent services.
- Receiving tax handling decisions, tax inspection reports, and having the right to request explanations regarding the contents of such decisions; preserving opinions in tax inspection, audit reports; receiving tax inspection, audit conclusion documents and decisions.
- Being compensated for damages caused by tax authorities or tax officers according to legal regulations.
- Requesting tax authorities to confirm the fulfillment of their tax obligations.
- Filing complaints, lawsuits regarding administrative decisions, actions related to their legitimate rights and interests.
- Not being administratively sanctioned or charged delayed payment fees when acting based on tax authority’s guidelines and decisions related to tax obligations.
- Denouncing legal violations by tax officials and other organizations and individuals according to the laws on denunciation.
- Accessing, viewing, and printing all electronic documents they have sent to the tax authority’s electronic portal according to the Tax Administration Law 2019 and e-commerce laws.
- Utilizing electronic documents in transactions with tax authorities and related agencies and organizations.
What are the responsibilities of taxpayers in Vietnam?
According to Article 17 of the Tax Administration Law 2019, the responsibilities of taxpayers are stipulated as follows:
- Conduct taxpayer registration and use tax identification numbers as required by law.
- Accurately, truthfully, fully declare taxes and submit tax files on time; take responsibility for the accuracy, truthfulness, and completeness of tax documents.
- Pay taxes, late fees, and penalties fully and timely, at the correct location.
- Adhere to accounting, statistics policies, and manage, use invoices, documents as regulated by law.
- Accurately, truthfully, fully record activities giving rise to tax obligations, tax deductions, and transactions requiring tax information disclosure.
- Create and deliver invoices and documents to buyers corresponding to the actual quantity, type, and payment value for goods sold or services provided according to legal provisions.
- Provide accurate, complete, and timely information and documents related to determining tax obligations, including investment value, account numbers, and transaction content at commercial banks and credit institutions; explain tax calculations, tax declarations, and tax payments as required by tax authorities.
- Comply with decisions, notices, and requests from tax authorities and tax officials as prescribed by law.
- Assume responsibility for tax obligations according to law when legal or authorized representatives improperly perform tax procedures.
- Taxpayers conducting business in areas with information technology infrastructure must perform electronic tax declarations and payment transactions with tax authorities according to legal regulations.
- Based on actual conditions and IT infrastructure capabilities, the Government of Vietnam prescribes the details for not submitting documents in tax filing, payment, refund, and other tax documentation where state agencies already possess them.
- Develop, manage, operate technical infrastructure systems to ensure electronic transactions with tax authorities, applying information connectivity related to tax fulfillment with tax management departments.
- Taxpayers engaged in related party transactions must prepare, store, declare, and provide records about taxpayers and related parties, including information about related entities residing in other countries or territories outside Vietnam as regulated by the Government of Vietnam.
