New Regulations on the Communal and Ward Tax Advisory Council

Composition of the Tax Advisory Council:

The Tax Advisory Council (TAC) is composed of: the Chairman or Vice-Chairman of the commune-level People's Committee - Chairman of the Council; the Head or Deputy Head of the inter-communal tax team (which includes wards and commune-level towns) or equivalent - permanent member; an official in charge of finance from the commune-level People's Committee - member; the Chairman of the commune-level Fatherland Front Committee - member; the Chief of the commune-level Police - member; and a representative of business households - member.

According to Decision 68/2007/QD-BTC, members of the commune-level TAC, including those from tax authorities, the Fatherland Front, and police, are not required to be leaders.

Duties of the Tax Advisory Council:

The TAC has three duties: Advising on projected revenue and projected tax amounts for business households paying stable taxes at the beginning of the year, including those exempt from value-added tax and personal income tax, and those required to pay tax; Advising on projected revenue and projected tax for new business households; and advising on tax exemptions and reductions for business households.

Previously, the TAC had seven duties: Coordinating with tax authorities to propagate and disseminate tax laws and regulations; Listing newly arising business households or those with changes in business scale and activities within the area and transferring this list to tax authorities for determination and classification management according to tax laws; Urging and motivating business households to fully and promptly declare and pay taxes to the state budget; Advising tax authorities on tax exemption and reduction for business households paying presumptive taxes; Participating with tax authorities in determining the tax payable by business households according to the presumptive method suitable to the actual business situation and ensuring fairness in taxation; Coordinating with tax authorities to enforce payment from reluctant business households; Reporting and notifying tax authorities and other relevant authorities of illegal activities by tax officers.

Authorities of the Tax Advisory Council:

The TAC has the following rights: Participating in training, dissemination, and receiving materials on current tax policies and tax management related to managing business households; Requesting the inter-communal tax team to provide information on tax management for business households in the area. Previously, the TAC had the rights to be disseminated and receive relevant documents on current tax policies; Requesting the tax management team of the commune-level area to provide information on tax administration in the area; and requesting other agencies to provide information on the socio-economic development situation in the area.

Responsibilities of the Chairman of the Tax Advisory Council:

The Chairman of the TAC has the following responsibilities: Deciding the program and work plan of the TAC; Inviting delegates, convening members, and presiding over TAC meetings; Assigning specific tasks to TAC members; Deciding and bearing general responsibility for the activities of the TAC and its members in performing their duties according to regulations; Reporting in writing to the Chairman of the district-level People's Committee and the Head of the district-level Tax Department in cases where individuals or other members can no longer participate in the TAC; Signing documents and transaction materials on behalf of the TAC. Previously, the TAC Chairman was responsible for assigning specific tasks to members suitable to their professional work to delve into issues that help the TAC work effectively.

Responsibilities of TAC Members:

General responsibilities for members: Implementing tasks assigned by the TAC Chairman and being responsible to the TAC Chairman for the results of the assigned work; Participating fully in TAC activities; Presenting opinions at meetings or in writing; Reporting in writing to the TAC Chairman if they can no longer participate in the TAC. Previously, it was only stipulated that members could speak openly at meetings on matters related to determining tax obligations of business households on the principles of ensuring fairness and equality among households.

Specific responsibilities for permanent members: Proposing the TAC work program and plan, and estimating task assignments for members for the TAC Chairman to review and decide; Preparing materials, taking minutes at meetings, and summarizing opinions of the TAC members; Reporting to the TAC Chairman and the Head of the district-level Tax Department in cases of member changes or additions. Previously, it was stipulated that the permanent member was responsible for preparing content for approval by the Chairman of the commune-level People's Committee before discussing it at meetings.

Working Regulations of the Tax Advisory Council:

The Chairman and TAC members perform their duties concurrently. The TAC operates under the direct direction of the TAC Chairman on matters related to tasks stipulated in this circular. The TAC convenes meetings to collect opinions on advisory matters as called for by the TAC Chairman. TAC meetings are conducted with the participation of the TAC Chairman and at least two-thirds of the total members (including the Chairman). The TAC can also solicit member opinions electronically, ensuring at least two-thirds total member participation similar to direct meetings. If member opinions are not unanimous, decisions are made by majority vote; if results are tied, the opinion agreed upon by the TAC Chairman is taken as the basis for meeting minutes.

TAC meetings must be minuted and signed by attending members. The minutes must clearly state cases agreeing with the Tax Department’s estimates and reasons for proposing adjustments in projected revenue and tax amounts for business households. When collecting opinions electronically, the permanent member collects and records them into the minutes like a direct meeting.

Previously, it was only generally stipulated that TAC members perform their duties concurrently. In cases of differing opinions at meetings, minutes were to be reported to and sought opinions from the commune-level People’s Committee and tax authority leaders. All TAC meetings are minuted for convenience in management by functional agencies and tax authorities.

Source: Binh Phuoc Newspaper

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