Request for Bank to Provide Transaction Information, Account Balance, Transaction Data for Tax Inspection
Request for Banks to Provide Transaction Information, Account Balances, Transaction Data for Tax Inspection
On June 22, 2023, the General Department of Taxation issued Official Dispatch 2535/TCT-TTKT in 2023 to enhance coordination in tax management.
According to the Official Dispatch, the General Department of Taxation requests commercial banks, other credit institutions, and payment intermediary service providers to cooperate in tax management and provide transaction information through accounts, account balances, and transaction data as requested by the Director of the Tax Department.
The Official Dispatch also specifies that the purpose of this request is to serve the work of inspection and determination of the tax obligations and to implement measures to enforce administrative decisions on tax management.
Official Dispatch 2535/TCT-TTKT in 2023 clearly states that the deadline for sending information is 10 working days from the date of receiving the written request from the tax authority.
Furthermore, according to Official Dispatch 2535/TCT-TTKT in 2023, when the Tax Departments require information, they should send a written request to the headquarters of commercial banks and other credit institutions for implementation. The content of the request should be detailed, providing identification and content information for commercial banks and other credit institutions to execute.
For complex and important matters, meetings between the tax department and commercial banks, other credit institutions can be organized; or coordination and work with the directly managing tax department of these entities, in accordance with the law.
The tax departments directly managing commercial banks and other credit institutions are responsible to cooperate with other tax departments when requested.
Additionally, the tax departments are responsible for maintaining the confidentiality of the information, using the information for the correct purpose, and fully taking responsibility for the safety of the information as per the provisions of the Law on Tax Administration and relevant legal regulations.
Request for Banks to Provide Transaction Information, Account Balances, Transaction Data for Tax Inspection?
How does the General Department of Taxation instruct on money transfer transactions to foreign suppliers?
According to Official Dispatch 2535/TCT-TTKT in 2023 to enhance coordination in tax management, commercial banks, other credit institutions, and payment intermediary service providers need to declare, withhold, and pay on behalf of and track the amount of money transferred to foreign suppliers in accordance with the regulations of the Ministry of Finance. Commercial banks, other credit institutions, and payment intermediary service providers that do not comply will be handled according to the regulations.
Based on this, the Large Enterprise Tax Department is responsible for notifying the names and website addresses of foreign suppliers who have not registered, declared, or paid taxes, which have transactions with purchasers of goods and services, to the headquarters of commercial banks, other credit institutions, and payment intermediary service providers.
In addition, cooperate with commercial banks, credit institutions, and payment intermediary service providers to implement Article 81 of Circular 80/2021/TT-BTC.
Is the bank subject to a penalty if it does not provide customer data as required by the tax authorities? If so, what is the penalty?
Based on Article 19 of Decree 125/2020/ND-CP regarding administrative penalties for tax violations for organizations and individuals as follows:
Administrative penalties for tax violations by related organizations and individuals
1. A fine ranging from VND 2,000,000 to VND 6,000,000 shall be imposed for the act of providing information and documents related to the determination of tax obligations, accounts of taxpayers as required by the tax authorities beyond the regulated time limit by 5 days or more.
2. A fine ranging from VND 6,000,000 to VND 16,000,000 shall be imposed for one of the following acts:
a) Colluding and covering up taxpayers who evade taxes, failing to enforce tax administrative decisions, except for the act of not transferring money from the taxpayer’s account as prescribed in Article 18 of this Decree;
b) Not providing or inaccurately providing information related to assets, rights, and obligations related to the taxpayer's assets held; taxpayer's accounts at credit institutions, state treasuries.
3. The fine level stipulated in Clauses 1 and 2 of this Article is imposed on organizations. The fine level for individuals applies according to the principle stipulated in Clause 5, Article 4 of this Decree.
4. Remedial measures: Forcing the provision of information for acts specified in Point b, Clause 2 of this Article.
Banks that do not provide customer data when the tax authorities issue a written request will be penalized as stipulated above.
Banks will be fined from VND 6,000,000 to VND 16,000,000.
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