Regulations on sanction about acts of tax evasion or tax fraud in Vietnam

REGULATIONS ON SANCTIONS ABOUT ACTS OF TAX EVATION OR TAX FRAUD IN VIETNAM

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Golden Star introduces some regulations related to tax fraud administrative penalties as follows:

Penalties for the act of tax evasion (Article 17, Decree125/2020/NĐ-CP)
1	Failing to submit tax registration applications; failing to file tax returns or filing tax returns 90 days after the deadline or the extended deadline for submission of tax returns, except the cases prescribed in point b and c of clause 4 and 5 of Article 13 herein.	Compelling the full payment of evaded taxes into the state budget and additional fines as follows: 1.The fine which equals the amount of evaded tax shall be imposed on the taxpayer committing any of these violations and there are at least a mitigating circumstance. 2.The fine which is 1.5 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there are not an aggravating or mitigating circumstances. 3.The fine which is 2 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there is an aggravating circumstance. 4.The fine which is 2.5 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there are two aggravating circumstances 5.The fine which is 3 times as much as the amount of evaded tax shall be imposed on any taxpayer committing one of these violations and there are least three aggravating circumstances.
2	Failing to keep accounting entries of amounts collected from the determination of taxes payable, any deficiency in taxes amounts due to non-declaration or false declaration or any increase in amounts of tax refund, exemption or reduction, except the acts prescribed in Article 16 herein.
3	Failing to issue invoices for sale of goods or provision of services, except the cases where the taxpayer has recorded taxes on sold goods or supplied services in the corresponding tax term; issuing invoices for sale of goods or provision of services in which the invoiced items and amounts based on which tax declaration is made are less than those that actually exist if this act is discovered after the deadline for submission of tax returns.
4	Using illegal invoices; illegally using invoices for declaring taxes with the intention of reducing taxes payable or increasing amounts of tax refund, exemption or reduction.
5	Using illegal evidencing documents; illegally using evidencing documents; using evidencing documents or records that do not correctly reflect the nature of transactions or actual values of these transactions for the purpose of falsely determining taxes payable, amounts of tax exemption, reduction or refund; preparing documents or records on destruction of supplies or goods which are not real, resulting in any reduction in taxes payable or any increase in amounts of tax refund, exemption or reduction;
6	Using goods not subject to taxes, or those qualified for tax exemption or consideration of tax exemption, to frustrate the prescribed purposes without informing tax authorities about the conversion of these purposes or registering tax declarations with tax authorities.
7	The violating taxpayer performs business activities during the period of business closure or temporary suspension without informing tax authorities, except the cases prescribed in point b of clause 4 of Article 10 herein.

1.Organizations and individuals that commit many acts of administrative violation shall be sanctioned for each violation, except the following cases:

a) In case the taxpayer incorrectly declares one or more items on the tax dossiers of the same tax at the same time, the act of making false declaration in the case of tax procedure sanction is only sanctioned for one act. incorrectly declaring the criteria on the tax dossier with the highest fine bracket among the acts that have been carried out under the provisions of this Decree and applying the violation aggravating circumstances many times;

b) If the taxpayer is late in submitting multiple tax declaration dossiers for multiple tax periods at the same time but the same tax period, only one act of late submission of tax declaration dossiers with the highest fine bracket in the number of acts that have been carried out under the provisions of this Decree and repeatedly aggravated circumstances are applied.

If the late-filing tax declaration dossier is in the case of tax evasion, it shall be separated to sanction the act of tax evasion;

c) If a taxpayer is late in submitting multiple notices or reports of the same type on invoices at the same time, the taxpayer will be sanctioned for one act of late submission of notices and reports on invoices with a high fine bracket. Most of the acts have been implemented in accordance with this Decree and the aggravating circumstances are applied many times;

d) The acts of violation on illegal use of invoices or illegal use of invoices which are sanctioned under Articles 16 and 17 of this Decree will not be sanctioned according to Article 28 of this Decree.

2. In cases where in an administrative procedure there are many components of the dossier, which are prescribed more than one act of administrative violation in this Decree, the violating organization or individual shall be sanctioned for each act of violation.

Refer to Decree 125/2020/ND-CP dated 19/10/2020 (Show detail)

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