The basis for determining the compensation liability of the tax office in Vietnam

Responsibility for compensation for damage of tax authorities in Vietnam

Pursuant to Article 2 of the Regulation on settlement of state compensation at tax authorities at all levels issued by the General Department of Taxation together with Decision 657/QD-TCT in 2023 (hereinafter referred to as the Regulation on settlement of compensation at tax offices), tax authorities in Vietnam shall compensate for damage in the following cases:

(1) Issuing decisions to sanction illegal administrative violations;

(2) Applying measures to prevent and ensure the handling of illegal administrative violations;

(3) Applying measures to coerce the execution of decisions sanctioning administrative violations against the law;

(4) Illegal application of taxes, fees, and charges; illegal collection of taxes, fees, and charges; illegal tax arrears and refund; illegal collection of land use levy;

(5) Failing to apply or improperly applying the provisions of the Law on Denunciation of measures to protect whistleblowers upon their request as prescribed in Clause 6, Article 17 of the Law on State Compensation Liability 2017;

(6) Performing acts prohibited under the Law on Access to Information about intentionally providing false information without correcting or providing information;

(7) Issuing decisions on disciplinary sanctions for illegal dismissal of tax officials within the competence of heads of tax offices.

The basis for determining the compensation liability of the tax office in Vietnam (Internet image)

The basis for determining the compensation liability of the tax authorities in Vietnam

Pursuant to Article 4 of the Regulation on compensation settlement at tax offices, tax offices shall pay compensation when the following grounds are fully satisfied:

- There is one of the grounds for determining that an illegal act of a tax official on duty has caused damage, and there is a corresponding claim for compensation according to the provisions of Clause 2, Article 7 of the Law on State Compensation Liability 2017;

- There is actual damage suffered by the damage sufferer within the scope of the tax agency's compensation liability;

- There is a causal relationship between the actual damage and the act causing the damage.

The document used as a basis for a compensation claim is a legally effective document promulgated by a competent state agency or person in accordance with law that clearly identifies illegal acts of tax officials causing damage, including:

- Complaint settlement decision in accordance with the law on complaints accepting part or all of the complainant's complaint;

- Decisions on cancellation, revocation, or amendment of an administrative decision because such a decision was issued illegally;

- Decisions on handling the denounced law-breaking acts of tax officials on duty on the basis of the conclusion of denunciation contents in accordance with the law on denunciations;

- Decisions on handling violations of the law by tax officials on duty on the basis of inspection conclusions according to the provisions of the law on inspection;

- Decisions on disciplinary sanctions against tax officials performing official duties due to illegal acts;

- Judgments and decisions of competent courts specifying illegal acts of tax officials on official duty;

- Other documents as prescribed by law satisfying the conditions specified in Clause 5, Article 3 of the Law on State Compensation Liability 2017.

Mai Thanh Loi

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