Who are entitled to decide tax re-inspection in Vietnam?
Who are entitled to decide tax re-inspection in Vietnam?
Based on Clause 1, Article 120 of the Law on Tax Administration 2019, the authority to conduct a re-inspection of a case that has been concluded but shows signs of legal violations in tax inspection is stipulated as follows:
Re-Inspection in tax inspection
- The authority to decide on a re-inspection of a case that has been concluded but shows signs of legal violations is regulated as follows:
a) The Chief Inspector of the Ministry of Finance decides on the re-inspection of a case concluded by the General Director, within the scope and authority of state management by the Ministry of Finance, when authorized by the Minister of Finance;
b) The General Director decides on the re-inspection of a case concluded by a Director under the General Department;
c) The Director decides on the re-inspection of a case concluded by a Sub-Department head under the Department;
d) The decision on re-inspection includes the contents stipulated in Article 114 of this Law. No later than 3 working days from the date of signing the re-inspection decision, the decision-maker must send the re-inspection decision to the inspection subject. The re-inspection decision must be announced no later than 15 days from the date of signing, and a record of the announcement of the re-inspection decision must be made by the inspection team.
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According to the above regulation, the authority for tax inspection belongs to the following individuals, agencies, and organizations:
- The Chief Inspector of the Ministry of Finance decides on the re-inspection of a case concluded by the General Director under the scope and authority of state management by the Ministry of Finance when authorized by the Minister of Finance;
- The General Director decides on the re-inspection of a case concluded by a Director under the General Department;
- The Director decides on the re-inspection of a case concluded by a Sub-Department head under the Department.
Who are entitled to decide tax re-inspection in Vietnam? (Image from the Internet)
What are the bases for tax re-inspection in Vietnam?
The bases for tax re-inspection are stipulated in Clause 2, Article 120 of the Law on Tax Administration 2019 as follows:
Re-Inspection in tax inspection
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- The re-inspection is conducted when there is one of the following bases:
a) There is a serious violation of the order and procedures in the process of conducting the inspection;
b) There is an error in the application of the law when concluding the inspection;
c) The inspection conclusion is inconsistent with the evidence gathered during the inspection or shows high risk indicators according to risk assessment criteria through risk analysis;
d) The decision-maker of the inspection, the head of the inspection team, or the inspection team members deliberately alter the case file or intentionally conclude contrary to the law;
dd) There is a sign of serious legal violation by the inspected entity not fully detected through the inspection.
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Therefore, a re-inspection is conducted when there is one of the following bases:
Firstly, there is a serious violation of the order and procedures in the process of conducting the inspection;
Secondly, there is an error in the application of the law when concluding the inspection;
Thirdly, the inspection conclusion is inconsistent with the evidence gathered during the inspection or shows high risk indicators according to risk assessment criteria through risk analysis;
Fourthly, the decision-maker of the inspection, the head of the inspection team, or the inspection team members deliberately alter the case file or intentionally conclude contrary to the law;
Fifthly, there is a sign of serious legal violation by the inspected entity not fully detected through the inspection.
It should be noted that a re-inspection in tax inspection is conducted when there is at least one of the above bases, not necessarily all of them.
What are regulations on time limit and duration of tax re-inspection in Vietnam?
According to Clause 3, Article 120 of the Law on Tax Administration 2019, the duration and time limit for re-inspection are regulated as follows:
- The time limit for re-inspection is 2 years from the date of signing the inspection conclusion;
- The duration for re-inspection is conducted according to the provisions of Article 115 of the Law on Tax Administration 2019.
Referring to Article 115 of the Law on Tax Administration 2019, the duration for re-inspection can be determined as follows:
Duration of Tax Inspection
- The duration of tax inspection is implemented according to the provisions of the Law on Inspection. The duration of an inspection is calculated as the time for conducting the inspection at the taxpayer’s headquarters from the date of announcing the inspection decision to the date of completing the inspection at the taxpayer’s headquarters.
- If necessary, the decision-maker of the tax inspection extends the inspection duration according to the provisions of the Law on Inspection. The extension of the tax inspection duration is decided by the decision-maker of the inspection.
Thus, the re-inspection duration in tax inspection is conducted as per the provisions of the Law on Inspection. The duration of the re-inspection is calculated as the time for conducting the inspection at the taxpayer’s headquarters from the date of announcing the inspection decision to the date of completing the inspection at the taxpayer’s headquarters.
In necessary cases, the decision-maker of the tax inspection may extend the re-inspection duration according to the provisions of the Law on Inspection. The extension of the re-inspection duration is decided by the decision-maker of the inspection.
