What are principles of settling a state compensation claim at tax office in Vietnam?

What are principles of settling a state compensation claim at tax office in Vietnam?

In Article 3 of the Regulation on settlement of state compensation at tax authorities at all levels promulgated together with Decision 657/QD-TCT in 2023, the principles of compensation claim settlement are as follows:

1. The settlement of compensation claims shall comply with the law on compensation liability of the state. Tax offices shall settle compensation claims after having documents as a basis for claiming compensation;

2. The settlement of compensation claims shall be carried out promptly, openly, equally, in good faith, honestly and in accordance with the law; shall be conducted on the basis of negotiations between the compensation-settling agency and the compensation claimant in accordance with the Law on Natural Resources and Environment.

3. A compensation claimant who has requested one of the compensation settlement agencies specified in Clause 7 Article 3 of the Law on State Compensation Law to settle a compensation claim and has been accepted by such agency for settlement shall not be permitted to make such claim. Other competent agencies shall settle compensation claims, except for the cases specified at Point b, Clause 1 and Clause 2, Article 52 of the Law on Natural Resources and Environment.

4. Comply with the compensation claim settlement procedure.

5. In case the damage sufferer is partly at fault in causing the damage, the tax office shall only compensate for the damage after deducting the damage corresponding to the fault of the damage sufferer.

What are regulations on scope of compensation settlement of tax authorities in Vietnam?

In Article 6 of the Regulation on settlement of state compensation at tax authorities at all levels promulgated together with Decision 657/QD-TCT in 2023, the tax authorities shall settle compensation as follows:

The tax authority that settles compensation is the General Department of Taxation, the Department of Taxation of Large Enterprises, the Department of Taxation, and the Sub-departments of Taxation that directly manage civil servants on duty, causing damage at the General Department of Taxation, the Department of Taxation of Large Enterprises, the Department of Taxation, and the Sub-departments of Taxation. As follows:

1. The General Department of Taxation, the Department of Taxation of Large Enterprises, the Department of Taxation, and the Sub-departments of Taxation are the compensation-settling agencies for the scope of the State's compensation liability specified in Clauses 1, 2, 3, 4, 5 and 6 Article 2 of this Regulation.

2. The General Department of Taxation and the Department of Taxation are the agencies that settle compensation for damage related to the issuance of decisions on disciplinary sanctions for illegal dismissal of tax officials specified in Clause 7 Article 2 of this Regulations.

Thus, depending on the scope of the State's compensation liability in Vietnam, the tax authorities have the authority to settle different claims:

General Department of Taxation, Tax Department of large enterprises, Department of Taxation, Sub-department of Taxation handle:

- Decision on sanctioning of illegal administrative violations;

- Apply measures to prevent and ensure the handling of illegal administrative violations;

- Unlawful application of coercive measures;

- Illegal application of taxes, fees and charges;

- Illegally collecting taxes, fees and charges;

- Illegal tax collection and refund;

- Illegally collecting land use levy;

- Failing to apply or improperly apply the provisions of the Law on Denunciation of measures to protect whistleblowers at the request of that person;

- Performing prohibited acts.

General Department of Taxation, Department of Taxation: Issue a decision on disciplinary action and illegal dismissal.

What are regulations on authority to settle a state claim at the Tax office in some special cases in Vietnam?

In Article 7 of the Regulation on settlement of state compensation at tax authorities at all levels promulgated together with Decision 657/QD-TCT in 2023, stipulating determination of compensation settlement agency in some specific cases such as: 

1. In case the claimant concurrently requests the tax authority to directly manage the damage-causing official duty officer and the court has jurisdiction to settle the compensation claim, the agency that has accepted the compensation claim usually the compensation agency first.

2. In case there are more than one official duty performer belonging to many agencies, causing damage together, the tax agency shall be the compensation-settling agency in case the tax authority assumes the prime responsibility for performing the task. In case there is no agreement on the compensation-settling agency, the state management agency in charge of state compensation is competent to determine the compensation-settling agency.

3. If at the time of receiving the compensation claim, the tax official causing the damage is no longer working at the tax agency managing that person at the time of causing the damage, the tax authority that settles the compensation shall be the tax authority that manages tax officials at the time of causing damage.

4. Where the tax authority that settles compensation has been divided, split, merged, consolidated or dissolved, the tax authority shall inherit the functions and duties of such tax authority as the compensation settlement agency; in case there is no tax agency to inherit the functions and duties of the dissolved tax agency, the tax agency that has issued the dissolution decision shall act as the compensation-settling agency.

5. In case of authorization or entrustment to perform official duties, the authorized tax agency or entrusting tax agency shall be the compensation settlement agency; In case the authorized or entrusted tax agency does not comply with the authorization or entrustment contents, causing damage, the authorized or entrusted tax agency shall be the compensation settlement agency.

Thus, the special cases that need to determine the jurisdiction to settle the claim in Vietnam are:

- In case both the Tax authority directly managing the civil servant commits violations and the Court is requested to settle the compensation, the agency that accepts the request for settlement first will handle the compensation claim;

- In case the tax authority in charge of performing the task has many violators belonging to different agencies, that tax authority shall have the duty to settle the compensation claim;

- In case there are many violators belonging to different agencies but have not yet reached an agreement on the compensation settlement agency, the state management agency in charge of state compensation work shall decide on the compensation settlement agency;

- If at the time of accepting the compensation claim, the violating official is no longer working at the tax office at the time of causing the damage, the agency managing the tax official at the time of causing the damage shall settle compensation.

- The agency that inherits the functions and tasks of the tax agency that has been divided, split, merged, consolidated or dissolved is the compensation settlement agency; in case there is no successor tax agency, the tax agency that has issued the dissolution decision shall be the compensation settlement agency;

- In case of authorization or entrustment to perform official duties, the authorized tax agency or entrusting tax agency shall be the compensation settlement agency;

- In case the authorized or entrusted tax agency does not comply with the authorization or entrustment contents, causing damage, the authorized or entrusted tax agency shall be the compensation settlement agency.

Best regards!