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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence-Freedom–Happiness
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No.
22-CP
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Hanoi
,April 17,1996
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DECREE
ON SANCTIONS AGAINST ADMINISTRA- TIVE VIOLATIONS IN TAX
PAYMENT
THE GOVERNMENT
Pursuant to the Law on Organization of the
Government on September 30,1992;
Pursuant to the Tax Laws, the Tax Ordinance, and the current stipulations on
the collection of revenues of the State Budget;
Pursuant to the Ordinance on the Handling of Violations of Administrative
Regulations of July 6, 1995;
At the proposal of the Minister of Finance,
DECREES:
Chapter I
ACTS OF VIOLATION AND
FORMS OF SANCTIONS AGAINST ADMINISTRATIVE VIOLATIONS IN TAX PAYMENT
Article 1.- The acts of
administrative violation in tax payment mentioned in this Decree are acts of
violating the provisions of the Tax Laws, the Tax Ordinance; the stipulations
on the making of vouchers on the purchase and sale of goods, the opening and
keeping of books of accounts; the current stipulations on the collection of
other payments to the State Budget concerning administrative fines which are
not so serious to be subject to examination for penal liability.
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1. Issue of a warning or a fining of from 20,000
(twenty thousand) VND to 200,000 (two hundred thousand) VND; and up to
1,000,000 (one million) VND if the violation involves an aggravating factor as
listed below:
a/ Delaying to make a tax declaration form to
the taxation agency beyond the set time limit;
b/ Omitting some of the items listed in the tax
declaration forms or in the accounting documents to be submitted to the
taxation agency;
c/ Failing to fully observe the regime of
making, keeping and using bills on the sale of goods according to State
stipulations.
2. A fine of from 100,000 (one hundred thousand)
VND to 1,000,000 (one million) VND, and up to 10,000,000 (ten million) VND if
the violation involves an aggravating factor as listed below:
a/ Failing to produce the book of accounts and
vouchers at the request of the taxation agency;
b/ Transporting goods without tax documents as
provided for by the tax law;
c/ Failing to submit the tax declaration form to
the taxation agency within the set time limit.
3. A fine of from 1,000,000 (one million) VND to
10,000,000 (ten million) VND, and up to 20,000,000 (twenty million) VND if the
violation involves an aggravating factor as listed below,:
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b/ Deliberately refusing to submit the tax
declaration forms, accounting reports and other related papers to the taxation
agency as stipulated by law, although the taxation agency has issued a second
notice;
c/ Destroying vouchers, books of accounts and
reports before the expiry date as stipulated by the State;
d/ Using bills and receipts banned or not issued
by the Ministry of Finance;
e/ Losing bills without promptly reporting it to
the responsible agency, or letting another person use one's bills in conducting
illegal trade to evade taxes.
Article 3.- The rates of
fine on the falsification of tax declaration and tax evasion:
Any organization or individual that falsifies
tax declaration forms and evades tax payment as stipulated in the Turnover Tax
Law, the Profit Tax Law, the Special Consumption Tax Law, the Export and Import
Tax Law, the Tax Law on the Use of Farm Land, and the Tax Law on the Transfer
of Land-Use Right, must pay the tax fully as stipulated in addition to paying a
fine as provided for by each of these laws.
In addition to administrative fines for the
falsification of tax declaration forms and the evasion of tax payment as
stipulated by the Tax Laws, any organization or individual that commits other
acts of falsifying tax declaration forms and evades tax payment are liable to
the following rates of fine, but the maximum shall not exceed 100,000,000 (one
hundred million) VND:
1. A fine equal to the amount of tax evasion; if
the violation involves an aggravating factor as listed below, the fine may
double the evaded amount:
a/ Making false declarations for the calculation
of tax rates as stipulated by each category of tax;
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c/ Failing to register statistical or accounting
figures as stipulated by the current accounting regime;
d/ Applying for temporary suspension of business
to have tax reduction or exemption, while in fact still conducting business.
In case an organization or individual violate
Points (a), (b) or (c), Item 1, of this Article, but if the violation is discovered
before the set time, and the organization or person concerned fully declare
their taxes and pay them fully, they shall not be fined for tax evasion, but
shall be fined as stipulated in Item 2, Article 2 of this Decree.
2. A fine double the amount of evaded tax; if
the violation involves an aggravating factor as listed below, it can be fined a
sum treble the amount of evaded tax:
a/ Transporting goods without the necessary
papers proving that the goods have been taxed or checked by the taxation agency
as stipulated by law;
b/ Conducting business without making tax
registration and tax payment declaration to the taxation agency;
c/ Falsifying bills on the sale of goods, cash
receipts, tax payment receipts and other papers relating to the calculation of
tax rates.
3. If an organization or individual evades a
large amount of tax, or if they have been subjected to administrative fines for
tax evasion and repeat the violation, the taxation agency shall submit their
dossier to the authorized criminal court for settlement.
Article 4.- The rates of
fine on violations of the regime of tax payment and fine payment:
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a/ Refusing to receive a tax payment notice, a
tax payment order, a fining order, or a decision on fining for violations of
tax provisions;
b/ Failing to perform their task as stipulated
by law by those organizations assigned to collect tax payment;
c/ Delaying tax or fine payment as written in
the tax notice or in the fining decision issued by the taxation agency;
d/ Deliberately delaying tax or fine payment.
2. In addition to paying fines as stipulated in
Item 1 of this Article, an organization or individual that violates the regime
of tax and fine payment must also pay a fine for delay of payment as stipulated
by the Tax Laws and the Tax Ordinance.
Article 5.- The rates of
fine on violations of the regime of checking goods and sealing goods:
A fine of from 100,000 (one hundred thousand)
VND to 1,000,000 (one million) VND, and up to 10,000,000 (ten million) VND if
the violation involves an aggravating factor as listed below:
a/ Refusing to let the taxation agency check the
goods being transported, check the stores of goods and materials at the
production and trade sites;
b/ Deliberately breaking the seal on warehouses,
storages of materials and machines, and workshops within the time of sealing
applied by the authorized agency as a measure to compel the payment of taxes or
fines.
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An organization or individual that contravenes
the stipulations in Point (a), Item 2, Article 3, of this Decree can have their
cash, goods, exhibits and means directly involved in the contravention
confiscated.
The confiscation of goods, exhibits and means
involved in a contravention can be applied only to those goods, exhibits and
means permitted by law for confiscation.
Chapter II
JURISDICTION AND
PROCEDURE TO FINE ADMINISTRATIVE VIOLATIONS IN TAX PAYMENT
Article 7.- The taxation
agency has the following jurisdiction:
1. The tax collectors on mission have the right to
serve a warning or impose a fine of up to 100,000 (one hundred thousand) VND on
administrative violations in tax payment in the locality under their charge.
The Head of a Tax Collection Station and the
Head of a Tax Collectors' Team have the right to serve a warning and impose a
fine of up to 200,000 (two hundred thousand) VND on administrative violations
in tax payment in the locality under their charge.
2. The Head of a Taxation Service has the right:
- To serve a warning or impose a fine of up to
2,000,000 (two million) VND on the administrative violations in tax payment
stipulated in Articles 2, 4 and 5 of this Decree in the locality under his/her
charge.
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- To confiscate the exhibits and means used in
committing administrative violations in tax payment with a value of up to
10,000,000 (ten million) VND as stipulated in Article 6 of this Decree.
3. The Head of the Taxation Department has the
right:
- To serve a warning or impose a fine of up to
20,000,000 (twenty million) VND on administrative violations in tax payment
stipulated in Articles 2, 4 and 5 of this Decree in the locality under his/her
charge.
- To fine a sum treble the amount of evaded tax
regarding the falsification and evasion of tax payment stipulated in Article 3
of this Decree. With regard to export and import tariffs, he/she can impose a
fine of up to 5 times the amount of evaded tax.
- To confiscate the exhibits and means used in
committing administrative violations in tax payment.
The Head of a Taxation Service and the Head of
the Taxation Department have the authority to issue a fining decision on the
violations stipulated in Item 2, Article 4, of this Decree.
Article 8.- The People's
Committees at various levels have the following jurisdiction to impose fines on
administrative violations in tax payment:
1. The Presidents of the People's Committees of
communes, wards and townships have the authority to serve a warning or impose a
fine of up to 200,000 (two hundred thousand) VND on violations of tax payment
in the use of farm land, tax payment on housing and land, and tax payment on
animal slaughter in the localities under their charge after consulting the
taxation agency of the same level.
2. The Presidents of the People's Committees of
precincts, provincial capitals, districts and cities belonging to provinces,
and the Presidents of the People's Committees of provinces and cities under the
Central Government have the authority to impose fines on violations as
stipulated in Article 27 and Article 28 of the Ordinance on the Handling
of Violations of Administrative Regulations regarding administrative violations
in tax payment at the proposal of the taxation agency of the same level.
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If an administrative violation in tax payment
falls under the jurisdiction of many agencies, it shall be fined by the agency
that is the first to handle the case as provided for by this Decree after
consulting the taxation agency of the same level.
Article 10.- The
procedure of fining administrative violations in tax payment shall comply with
the provisions of the Articles in Chapter VI of the Ordinance on the Handling
of Violations of Administrative Regulations of July 6, 1995.
Article 11.- The
enforcement of decisions on the fining of administrative violations in tax
payment is stipulated as follows:
1. With regard to those organizations and
individuals that have been fined for administrative violations, but who refuse
to comply with the fining decision, the authorized person who has issued the
decision on administrative fine in tax payment has the authority to enforce
observance of the decision on administrative fine in tax payment by the
following measures:
a/ Deducting part of their salary or part of
their income, or deducting money from their bank accounts. The organization or
individual that is to pay the fine, or the Bank where the fined organization or
individual opens their bank accounts shall have to comply with the compulsory
decision of the taxation agency;
b/ Temporarily keeping the goods and exhibits to
ensure a full collection of tax and fine;
c/ Registering part of the property that has a
value equal to the amount of fine and tax for auction sale.
2. The agency authorized to issue the compulsory
decision shall have to organize the compulsory registration of property for
auction sale to fully collect the tax and fine. The handling of the exhibits
and means involved in administrative violations in tax payment shall comply
with Article 52 of the Ordinance on the Handling of Violations of
Administrative Regulations.
3. The People's Police Force which is assigned
to enforce the compulsory decision of the People's Committee of the same level
must cooperate with the taxation agency to carry out the compulsory decision of
the taxation agency.
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Article 12.- The
effective time for fining administrative violations in tax payment is 2 years
beginning from the date when the violation is discovered. Within this effective
time, if the organization or individual concerned commits a new violation or
deliberately evades or obstructs the fining, this effective time shall not
apply. As for the falsification of tax declaration forms and tax evasion
stipulated in Article 3 of this Decree, the effective time for fining is 3
years beginning from the date when the violation is discovered.
Chapter III
COMPLAINT, DENUNCIATION
AND THE HANDLING OF VIOLATIONS
Article 13.-
Stipulations on complaint and denunciation:
Complaints about a decision on the fining of
administrative violations, the procedure of settling complaints about a
decision on the fining of administrative violations in tax payment and the
procedure of settling denunciation of violations in tax payment shall have to
comply with Articles 87, 88 and 90 of the Ordinance on the Handling
Administrative Violations of July 6,1995.
Article 14.-
Stipulations on the handling of violations:
The fining of violations committed by the
persons authorized to impose fines on administrative violations in tax payment
and the fining of violations committed by those persons found guilty of
administrative violations in tax payment shall comply with Articles 91 and 92
of the Ordinance on the Handling of Violations of Administrative Regulations of
July 6,1995.
Article 15.-
Stipulations on the commendation and granting of awards on the discovery and
handling of violations: an organization or individual that is credited with the
discovery of a falsification of tax declaration form and tax evasion shall be
awarded part of the evaded tax discovered after the fining decision or the
decision to settle complaints takes effect. The rates of award are fixed as
follows:
- 2% (two per cent) for the discovery of tax
evasion in the State-owned economic sector.
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The Ministry of Finance shall give guidance on
the procedure of awarding and the principle of distributing and using the award
money as mentioned above.
The remainder of the evaded tax collected after
granting such award shall be remitted to the State Budget.
Chapter IV
IMPLEMENTATION PROVISIONS
Article 16.- This
Decree takes effect from May 1st, 1996. Decree No.01-CP issued by the
Government on October 18,1992 stipulating the fining of administrative
violations in tax payment is now annulled.
Article 17.- The
Minister of Finance shall give detailed guidance on the implementation of this
Decree.
The Ministers, the Heads of the
ministerial-level agencies, the Heads of the agencies attached to the
Government, and the Presidents of the People's Committees of the provinces and
cities under the Central Government shall have to implement this Decree.
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