Circular 24/2012/TT-BTC dated February 17, 2012 of the Ministry of Finance amending and supplementing Circular No. 77/2008/TT-BTC of September 15, 2008, guiding a number of measures to handle outstanding tax debts

CIRCULAR

AMENDING AND SUPPLEMENTING CIRCULAR NO. 77/2008/TT-BTC OF SEPTEMBER 15, 2008, GUIDING A NUMBER OF MEASURES TO HANDLE OUTSTANDING TAX DEBTS

Pursuant to November 29, 2006 Law No. 78/2006/QH10 on Tax Administration;

Pursuant to the Government s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

In furtherance of the Government s Resolutions No. 25/NQ-CP of June 2, 2010, simplifying 258 administrative procedures under the management of ministries and sectors, and No. 68/NQ-CP of December 27, 2010, simplifying administrative procedures under the management of the Ministry of Finance;

The Ministry of Finance amends and supplements Circular No. 77/2008/TT-BTC of September 15, 2008, guiding a number of measures to handle outstanding tax debts, as follows:

Article 1. To amend and supplement Points 1b and 1c, Section II as follows:

"b/A dossier of request for exemption from retrospective collection of tax and payment of fines for late tax payment to be compiled and sent by an enterprise to the customs office which carries out customs procedures comprises:

b.l/ The enterprise s written request for exemption from retrospective collection of tax and payment of fines, clearly stating the reason for exemption, and the tax amount subject to retrospective collection;

b.2/The declaration of the imported or exported goods subject to retrospective collection of tax;

b.3/The customs office s first-time tax notice;

b.4/ The receipt of the tax amount paid according to the customs office s first-time tax notice;

b.5/ The customs office s tax retrospective collection decision or notice;

b.6/ The receipt of the tax amount retrospectively collected according to the tax retrospective collection decision or notice (in case the tax amount subject to retrospective collection was paid but a fine for late payment was not yet paid);

b.7/ The decision imposing a fine on late payment of the tax amount subject to retrospective collection;

b.8/ The commercial contract;

b.9/ The commercial invoice, bill of lading;

b.10/The assessment certificate of the assessment agency (if any).

Of the above papers, the written request must be the original while others are copies appended with a true-copy stamp and signed by a competent representative of the enterprise.

c/The order of and procedures and competence for handling a request for exemption from retrospective collection of tax and payment of fines for late tax payment:

The enterprise shall send a dossier of request for exemption from retrospective collection of tax debts and payment of fines to the provincial-level Customs Department which carries out customs procedures for the goods lots for which tax is to be retrospectively collected for the latter to examine and certify the truthfulness of the dossier.

The provincial-level Customs Department shall examine the enterprise s dossier against the provisions of Point la of this Section and handle it as follows:

c.1/If the dossier is incomplete, within3working days after receiving it, the provincial-level Customs Department shall notify in writing the enterprise of amendments and supplementations which the enterprise is required to make to the dossier according to regulations.

c.2/If the dossier is complete:

c.2.1/In case the enterprise is eligible for exemption from retrospective collection of tax and payment of fines, within10working days after receiving the dossier, the provincial-level Customs Department shall send an official letter reporting and stating its proposals on handling the case, together with the enterprise s dossier, to the General Department of Customs. Such an official letter must indicate:

- Subjective and objective causes (as mentioned above), circumstances and facts of the wrong calculation (or notification) of the payable tax amount, resulting in the retrospective collection of tax;

- The tax amount according to the first-time notice;

- The tax amount subject to retrospective collection;

- The tax amount subject to retrospective collection and fine amount requested for exemption.

c.2.2/In case the enterprise is ineligible for consideration of exemption from retrospective collection of tax and payment of fines according to regulations, within10working days after receiving the dossier, the provincial-level Customs Department shall issue a written reply to the taxpayer, requesting it to fully pay the tax amount subject to retrospective collection and the fine for late payment of this tax amount according to regulations.

The General Department of Customs shall examine the dossier and report sent by the provincial-level Customs Department before submitting them to the Ministry of Finance for decision to exempt the enterprise from paying the tax amount subject to retrospective collection and related fines."

Article 2.To amend and supplement Points2band2c,Section II as follows:

"b/ A dossier of request for writing-off of tax and fine debts for late tax payment to be compiled and sent by an enterprise to the customs office which carries out customs procedures comprises:

b.l/ The enterprise s written request for writing-off of tax and fine debts, clearly stating the reason for the request, the reason for the wrong calculation of the payable tax amount, the notified tax amount (and fine), the accurate payable tax amount, and the tax amount and fine requested for writing-off;

b.2/ The declaration of the imported or exported goods for which writing-off of tax debt is requested;

b.3/ The customs office s tax notice;

b.4/ The tax administration agency s tax retrospective collection decision (if any);

b.5/ The decision imposing a fine for late tax payment (if any);

b.6/ The commercial contract;

b.7/The commercial invoice;

b.8/ The assessment certificate of the assessment agency (if any);

b.9/ A written description of the characteristics, nature and composition of the goods, supplied by the manufacturer (if any).

Of the above papers, the written request must be the original while others are copies appended with a true-copy stamp.

c/ The order of and procedures and competence for writing off tax and fine debts:

The enterprise shall send a dossier of request for writing-off of tax and fine debts to the provincial-level Customs Department which carries out customs procedures for the goods lots for which tax is owed for the latter to examine and certify the truthfulness of the dossier.

The provincial-level Customs Department shall examine the enterprise s dossier against the provisions of Point2aof this Section and handle it as follows:

c.1/ If the dossier is incomplete, within3working days after receiving it, the provincial-level Customs Department shall notify in writing the enterprise of amendments and supplementations which the enterprise is required to make to the dossier according to regulations.

c.2/If the dossier is complete:

c.2.1/In case the enterprise is eligible for writing-off of tax and fine debts, within10working days after receiving the dossier, the provincial-level Customs Department shall send an official letter reporting and stating its proposals on writing-off of tax and fine debts for the enterprise, together with the enterprise s dossier, to the General Department of Customs. Such an official letter must indicate:

- Causes of the wrong calculation of the payable tax amount and the reason for recalculation of the tax;

- The notified tax (and fine amount);

- The recalculated payable tax amount;

-  The tax and fine amounts requested for writing-off;

-  A certification that the enterprise is eligible for writing-off of debts under the guidance at Point 2a of this Section and a commitment to taking responsibility for the proposed writing-off of tax and fine debts.

c.2.2/ In case the enterprise is ineligible for writing-off of tax and fine debts according to regulations, within 10 working days after receiving the dossier, the provincial-level Customs Department shall issue a written reply to the taxpayer, requesting it to fully pay the tax amount subject to retrospective collection and the fine for late payment of this tax amount according to regulations.

The General Department of Customs shall examine the dossier and report sent by the provincial-level Customs Department before submitting them to the Ministry of Finance for decision on writing-off of debts for the enterprise."

Article3. Organization of implementation

This Circular takes effect on April 15, 2012, and replaces previous guidance contrary to this Circular. The General Department of Customs and provincial-level Customs Departments shall implement this Circular.

Any problems arising in the course of implementation of this Circular should be reported to the Ministry of Finance for study and settlement.-