VietnameseDecree No. 98/2007/ND-CP dated June 7, 2007 of Government providing for the handling of tax-law violations and the enforcement of tax-related administrative decisions
ATTRIBUTE
Decree No. 98/2007/ND-CP dated June 7, 2007 of Government providing for the handling of tax-law violations and the enforcement of tax-related administrative decisions
| Issuing body: | Government | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 98/2007/ND-CP | Signer: | Nguyen Tan Dung |
| Type: | Decree | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 07/06/2007 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Administrative violation , Public order , Tax - Fee - Charge |
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THE GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
No. 98/2007/ND-CP | Hanoi, June 07, 2007 |
DECREE
PROVIDING FOR THE HANDLING OF TAX-LAW VIOLATIONS AND THE ENFORCEMENT OF TAX-RELATED ADMINISTRATIVE DECISIONS
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2006 Law on Tax Administration;
Pursuant to the July 2, 2002 Ordinance on Handling of Administrative Violations;
At the proposal of the Finance Minister,
DECREES:
Chapter I
HANDLING OF TAX-LAW VIOLATIONS
Section 1. GENERAL PROVISIONS ON HANDLING OF TAX-LAW VIOLATIONS
Article 1.- Governing scope and subjects of application
1. Governing scope:
This Chapter provides for the principles, competence, violation acts, levels and measures of handling tax-law violations; the order and procedures for implementation of provisions on handling of tax-law violations under the provisions of the Law on Tax Administration and the law on handling of administrative violations.
Tax-law violations related to imported and exported goods shall be handled under separate regulations of the Government.
2. Subjects to be handled for tax-law violations include:
a/ Taxpayers who commit acts of violating tax law;
b/ Tax agencies and tax officers that violate tax law;
c/ Persons having competence and responsibility to handle tax-law violations;
d/ State agencies, other organizations and individuals that are involved in the handling of tax-law violations.
Article 2.- Principles for handling of tax-law violations
1. All acts of violating tax law must be detected and stopped immediately. Tax-law violations must be handled in a timely, public, transparent and resolute manner. All consequences caused by tax-law violations must be addressed in accordance with law.
2. Individuals and organizations shall be handled only when they commit acts of violating the tax law, which have been prescribed in laws, ordinances and legal documents on tax; violate the provisions of the Law on Tax Administration and this Decree.
3. An act of tax-law violation is sanctioned only once, specifically as follows:
a/ An act of tax-law violation for which a competent person has issued a sanctioning decision or made a record for sanctioning, shall not be recorded or decided for the second sanctioning. When the act of violation is still committed even though a competent person has issued a suspension order, it is regarded as an aggravating circumstance under Article 3 of this Decree;
b/ Where an act of tax-law violation shows signs of crime and the file thereon has been transferred for penal liability examination, but for which a decision on administrative sanctioning of tax violation was previously issued, the person who issued such sanctioning decision must cancel it; if the sanctioning decision is not yet issued, such act of tax-law violation is not sanctioned.
4. If many persons commit an act of tax-law violation, each violator shall be sanctioned for such act;
5. A person who commits many acts of tax-law violation shall be sanctioned for every act of violation.
6. Persons competent to handle tax-law violations shall base on the nature and severity of violations, personal records of violators, aggravating and extenuating circumstances to issue decisions to sanction every person committing the same act of tax-law violation.
Article 3.- Aggravating circumstances
1. Committing violations in an organized manner.
2. Committing violations persistently.
3. Repeating sanctioned tax-law violations within one year after the sanctioning decisions were completely served or expired.
4. Inciting or enticing minors to commit violations, forcing one’s material and spiritual dependents to commit violations.
5. Committing violations in the state of intoxication due to the use of alcohol, beer or other stimulants.
6. Abusing positions or powers to commit violations.
7. Taking advantage of circumstances of war, natural disaster or other particular objective difficulties to commit violations.
8. Committing violations while serving criminal sentences or decisions to handle tax-law violations.
9. Continuing to commit violations even though competent persons have demanded the termination thereof.
10. Committing acts of shirking or covering up the committed acts of tax-law violation.
Article 4.- Extenuating circumstances
1. Violators have warded off or alleviated harms caused by their violations or addressed the consequences thereof, paid the damages.
2. Violators have voluntarily reported their violations, honestly accepted their errors and listed and adjusted the errors.
3. Violators are forced to commit violations or are material or spiritual dependents.
4. Violators are pregnant women, old and weak persons, minors aged between full 16 and under 18 years old, persons suffering from ailment or disability that has restricted their capacity to cognize or control their acts.
5. Committing violations in particularly difficult circumstances not caused by violators.
6. Committing violations due to failure to grasp tax policies and laws.
7. Committing violations in the state of being spiritually provoked by illegal acts of other persons.
Article 5.- Statutes of limitations for sanctioning of tax-law violations
1. For acts of violating the tax procedures, the statute of limitations for sanctioning is 2 years, counting from the date the violation acts are committed.
2. For acts of tax evasion or tax fraud which are not serious enough for penal liability examination, acts of delaying tax payment, declaring tax inadequately, the statute of limitations for sanctioning is 5 years, counting from the date the violation acts are committed.
The time for determining acts of tax evasion or tax fraud is the date following the deadline of submission of tax declaration dossiers of the tax calculation period in which the taxpayers commit acts of tax evasion or tax fraud or the date following the date the competent agencies issue decisions on tax refund, exemption or reduction.
3. For individuals against whom legal proceedings were instituted, taken or trial according to criminal procedures was decided, and later decisions to suspend the investigation or the cases were issued, but their violation acts show signs of tax-law violation, the agencies which have issued decisions to suspend the investigation or the cases shall, within 3 days after issuing such decisions, send the decisions and case files to the bodies competent to handle tax-law violations. For this case, the statute of limitations for sanctioning is 3 months, counting from the date the persons competent to handle tax-law violations receive the suspension decisions and case files.
4. If within the statute of limitations stated in Clauses 1, 2 and 3 of this Article, the taxpayers continue repeating the violations committed previously or deliberately shirk or obstruct the sanctioning, the statute of limitations stated in Clauses 1, 2 and 3 of this Article is not applied and the statute of limitations for sanctioning of tax-law violations is counted from the time the new violations are committed or the time the acts of shirking or obstructing the sanctioning terminate.
Article 6.- Forms of sanctioning tax-law violations
1. For every act of tax-law violation, the violating individuals or organizations are liable to one of the following sanctioning forms:
a/ Caution:
Caution is decided in writing and applied to:
- First-time violations or second-time violations involving extenuating circumstances, for less serious violations of tax procedures;
- Violations of tax procedures committed by minors aged between full 14 and under 16 years old.
b/ Fine:
Fine is specified for every act of tax-law violation as follows:
- Fine with an absolute sum of money for acts of violating the tax procedures, the maximum fine level must not exceed VND 100 million. The specific fine level for an act of violating the tax procedures is the average of the fine bracket set for such act; if extenuating circumstances are involved, the fine level may be reduced, but not lower than the minimum level of the fine bracket; if aggravating circumstances are involved, the fine level may be raised but not beyond the maximum level of the fine bracket;
- A fine of 0.05% of the late paid tax amount each day, for acts of delayed payment of tax or fine money;
- A fine of 10% of the outstanding tax amount, for acts of making false declarations which lead to lower payable tax amount or higher refunded tax amount;
- A fine corresponding to the money amount not remitted into state budget accounts, for violation acts defined at Point b, Clause 1, Article 114 of the Law on Tax Administration;
- A fine of one to three times the evaded tax amount, for acts of tax evasion or tax fraud.
Upon determination of fine levels against taxpayers who commit violations involving both aggravating circumstances and extenuating circumstances, the reduction of aggravating circumstances will be considered on the principle that an aggravating circumstance is reduced if there appear two extenuating circumstances. If after the reduction under the above principle, there still exist one aggravating circumstance and one extenuating circumstance, depending on the nature and severity of violations and the remedies taken by violators, the persons with handling competence will take into account the fine level applied to cases involving one aggravating circumstance or cases involving no aggravating circumstances and no extenuating circumstances. For acts of violating the tax procedures, each aggravating or extenuating circumstance will lead to an increase or decrease of 20% of the average fine level of the fine bracket.
2. Depending on the nature and severity of violations, organizations and individuals violating tax law may also be liable to the application of the additional sanctioning form of confiscation of material evidences and means used for commission of tax-law violations.
3. Remedies:
Apart from the sanctioning forms defined in this Article, taxpayers that violate provisions of Section 2 of this Chapter may also be liable to the application of following remedies:
a/ Compulsory full payment of the outstanding tax amounts, the evaded tax amounts or the fraudulent tax amounts into the state budget if the statute of limitations provided in Article 5 of this Decree has expired;
b/ Coerced destruction of invoices, vouchers and accounting books which are printed and distributed in contravention of provisions of law, excluding invoices, vouchers and accounting books which are material evidences and must be kept for use as proofs for handling of violations.
Section 2. SANCTIONING OF TAX-LAW VIOLATIONS COMMITTED BY TAXPAYERS
Article 7.- Sanctioning of acts of submitting tax registration dossiers, or notifying information changes later than schedule
1. Caution or a fine of between VND 100,000 and 1,000,000, for acts of submitting tax registration dossiers or notifying changes of information in tax registration dossiers to tax agencies from 10 to 20 days later than schedule.
2. A fine of between VND 200,000 and 2,000,000 for acts of submitting tax registration dossiers or notifying changes of information in tax registration dossiers to tax agencies more than 20 days later than schedule.
Article 8.- Sanctioning of acts of incompletely declaring the contents in tax dossiers
For acts of falsely or incompletely declaring the contents in tax declaration dossiers defined in Article 31 of the Law on Tax Administration (except the cases in which taxpayers can make additional declarations according to regulations), which are detected beyond the time limit set for submission of tax declaration dossiers:
1. Caution or a fine of between VND 100,000 and 1,000,000, for acts of making tax declaration dossiers with incomplete or false statement of details on the lists of goods, services purchased or sold or on other documents related to tax obligations.
2. Caution or a fine of between VND 150,000 and 1,500,000, for acts of making tax declaration dossiers with incomplete or false statement of details on invoices. economic contracts and vouchers related to tax obligations.
3. A fine of between VND 200,000 and 2,000,000, for acts of making tax declaration dossiers with incomplete or false statement of details on tax declaration forms or tax settlement forms.
4. A fine of between VND 500,000 and 3,000,000, for cases involving many violations defined in Clauses 1, 2 and 3 of this Article.
Article 9.- Sanctioning of acts of submitting tax declaration dossiers later than schedule
1. Caution or a fine of between VND 100,000 and 1,000,000, for acts of submitting tax declaration dossiers 5 to 10 days later than schedule.
2. A fine of between VND 200,000 and 2,000,000, for acts of submitting tax declaration dossiers over 10 to 20 days later than schedule.
3. A fine of between VND 300,000 and 3,000,000, for acts of submitting tax declaration dossiers over 20 to 30 days later than schedule.
4. A fine of between VND 400,000 and 4,000.000, for acts of submitting tax declaration dossiers over 30 to 40 days later than schedule.
5. A fine of between VND 500,000 and 5,000,000, for acts of submitting tax declaration dossiers over 40 to 90 days later than schedule.
6. The tax declaration dossier submission time limits specified in this Article also cover the extension of tax declaration dossier submission provided in Article 33 of the Law on Tax Administration.
7. The fine levels specified in this Article are not applicable to cases of extension of tax payment under the provisions of tax administration law.
Article 10.- Sanctioning of acts of violating the regulations on supply of information related to tax obligation determination
Acts of violating the regime of supplying information related to tax obligation determination other than the cases of inadequate tax declaration, tax evasion or tax fraud, shall, depending on such acts and severity of violation, be sanctioned as follows:
1. Caution or a fine of between VND 100,000 and 1,000,000, for one of the following acts:
a/ Supplying information, documents, legal records related to tax registration under notices of tax agencies 5 working days or more later than schedule;
b/ Supplying information, documents, accounting books related to tax obligation determination under notices of tax agencies 5 working days or more later than schedule;
c/ Falsely supplying information, documents or accounting books related to tax obligation determination later than the schedule required by tax agencies.
2. A fine of between VND 200,000 and 2,000,000, for one of the following acts:
a/ Inadequately or inaccurately supplying information, documents or accounting books related to tax obligation determination within the tax declaration duration; account numbers, deposit account balances to competent bodies, when so requested;
b/ Failing to supply adequate, accurate norms and figures related to tax obligations to be registered according to regulations, which are detected but do not reduce the obligations toward the state budget;
c/ Inadequately or inaccurately supplying information or documents related to deposit accounts at banks, other credit institutions or state treasuries within 3 working days after being so requested by tax agencies.
Article 11.- Sanctioning of acts of violating the provisions on compliance with decisions on tax examination or inspection, enforcement of tax-related administrative decisions and violating the regimes of invoices and vouchers for goods transported en route
1. A fine of between VND 200,000 and 2,000,000, for one of the following acts:
a/ Declining to receive decisions on tax examination or inspection, decisions on enforcement of tax-related administrative decisions;
b/ Failing to abide by decisions on tax examination or inspection, decisions on enforcement of tax-related administrative decisions within 3 working days, counting from the date of compliance with decisions of competent bodies;
c/ Rejecting, delaying or shirking the supply of dossiers, documents, invoices, vouchers, accounting books related to tax obligations within 6 working hours after the receipt of requests of competent bodies during tax examination or inspection at the head offices of taxpayers;
d/ Inaccurately supplying information, documents, accounting books related to tax obligation determination at the request of competent bodies during tax examination or inspection at the head offices of taxpayers.
2. A fine of between VND 500,000 and 5,000,000, for one of the following acts:
a/ Failing to supply figures, documents, accounting books related to tax obligation determination when so requested by competent bodies during the tax examination or inspection at the head offices of taxpayers;
b/ Failing to execute or improperly executing decisions on sealing off dossiers, safes, warehouses of goods, supplies, raw materials, machinery, equipment, workshops, which serve as bases for verification of tax obligations;
c/ Arbitrarily removing or altering seals legally established by competent bodies as bases for verification of tax obligations;
d/ Declining to sign examination or inspection records within 5 working days after the end of examination or inspection;
e/ Declining to abide by tax examination or inspection conclusions or enforcement of tax-related administrative decisions of competent bodies.
3. Violations of invoice, voucher regimes for goods transported en route shall be sanctioned as follows:
a/ A fine of between VND 200,000 and 2,000,000, for cases of failing to supply valid invoices or vouchers of lots of transported goods within 12 hours, counting from the time competent bodies inspect and detect violation acts;
b/ A fine of between VND 300,000 and 3,000,000, for cases of failing to supply valid invoices or vouchers of lots of transported goods within 12 to 24 hours, counting from the time competent bodies inspect and detect violation acts;
c/ A fine of between VND 1,000,000 and 5,000,000, for cases of failing to supply valid invoices, vouchers of lots of transported goods after 24 hours, counting from the time competent bodies inspect and detect the violation acts but have not yet issued sanctioning decisions.
If invoices or vouchers can be supplied after tax agencies have issued sanctioning decisions or cannot be supplied after the expiration of the time limit prescribed at this Point, the violators shall be sanctioned for acts of tax evasion; if they can supply vouchers of tax payment for lots of transported goods within the statute of limitations for settlement of complaints, they shall be fined only according to the levels provided for at this Point and not sanctioned for acts of tax evasion.
Article 12.- Sanctioning of acts of delaying tax payment
1. Violations sanctioned for delayed tax payment by taxpayers include:
a/ Paying tax later than schedule, than the extended time limit for tax payment, the time limit stated in tax agencies’ notices or decisions on handling of tax-law violations;
b/ Paying tax in deficit due to wrong declaration of tax amounts to be paid, to be exempted, to be reduced or to be refunded of the previous tax declaration periods, but the taxpayers have themselves detected the errors and voluntarily paid the full deficit tax amounts into the state budget before receiving the tax examination or inspection decisions of competent bodies.
2. The fine level is 0.05% of the late paid tax amount for each day, for violations defined in Clause 1 of this Article.
The number of days of delayed tax payment covers public holidays and weekends according to the prescribed regime and is counted from the date following the last day of the tax payment time limit, the extended time limit for tax payment, the time limit stated in notices of handling decisions of tax agencies to the date the taxpayers have voluntarily paid the deficit tax amounts into the state budget.
3. When taxpayers can themselves determine the fine amounts for late tax payment, they shall themselves declare and pay the fine amounts into the state budget according to Clause 2 of this Article.
If taxpayers cannot themselves determine or wrongly determine the fine amounts for late tax payment, tax agencies shall determine the fine amounts for late tax payment and notify them to taxpayers.
4. If within 30 days after the tax payment deadline taxpayers still fail to pay the delayed tax and fine amounts, tax agencies shall notify them of such amounts.
5. Taxpayers are not subject to a fine for delayed payment of outstanding tax in the extended tax payment time limit.
Article 13.- Sanctioning of acts of making incorrect declarations which lead to lower payable tax amounts or higher refundable tax amounts
1. Cases of incorrect declarations, which lead to lower payable tax amounts or higher refundable tax amounts, include:
a/ Acts of making incorrect declarations, which lead to lower payable tax amounts or higher refundable tax amounts, higher exempted or reduced tax amounts, but taxpayers have promptly, fully and honestly noted down economic operations giving rise to tax obligations on accounting books, invoices or vouchers;
b/ Acts of making incorrect declarations by taxpayers, which lead to lower payable tax amounts or higher refundable, exempted or reduced tax amounts, which do not fall into the cases defined at Point a, Clause 1 of this Article, but when they are detected by competent bodies, the violators voluntarily pay the full tax amounts not declared into the state budget before the time tax agencies make tax examination records or tax inspection conclusions;
c/ Acts of making incorrect declarations by taxpayers, which lead to lower payable tax amounts or higher refundable, exempted or reduced tax amounts, for which competent bodies have made tax examination records or tax inspection conclusions confirming false declarations for tax evasion, but if the taxpayers have committed them for the first time with extenuating circumstances and voluntarily paid the full tax amounts into the state budget before the time the competent bodies issue handling decisions, tax agencies shall make records to re-affirm acts of making inadequate tax declarations;
d/ Using invalid invoices or vouchers to account the value of purchased goods or services, thus reducing the payable tax amounts or increasing the refundable, exempted or reduced tax amounts, but when they are detected by tax agencies, the purchasers can prove that the sellers have used invalid invoices and they have made full payment according to regulations.
2. The fine levels for violation acts defined in Clause 1 of this Article are 10% of the tax amounts declared lower or the refundable, exempted or reduced tax amounts higher than the levels prescribed by tax law.
3. Tax agencies determine the deficit tax amounts, fine amounts, the number of days of delayed tax payment, the fine amounts for delayed tax payment and issue decisions to fine taxpayers.
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