Chapter VI RESPONSIBILITIES TO FULFILL THE TAX PAYMENT OBLIGATION

Vietnamese who leave the country for overseas permanent residence, and overseas Vietnamese and foreigners on exit from Vietnam shall fulfill the tax payment obligation before their exit. The entry and exit management agency shall stop the exit of individuals who fail to fulfill the tax payment obligation according to notices of tax administration agencies.

1. Dissolved enterprises shall fulfill the tax payment obligation in accordance with the provisions of the Enterprise Law.

2. Bankrupt enterprises shall fulfill the tax payment obligation in accordance with the order and procedures specified by the Bankruptcy Law.

3. If enterprises that terminate their operation fail to fulfill the tax payment obligation, their tax arrears shall be paid by their owners.

4. If households or individuals that terminate their operation fail to fulfill the tax payment obligation, their tax arrears shall be paid by heads of those households or those individuals.

Article 55.- Fulfillment of the tax payment obligation by reorganized enterprises

1. To-be-divided enterprises shall fulfill the tax payment obligation before the division. If a divided enterprise fails to fulfill the tax payment obligation, enterprises newly founded on the basis of the divided enterprise shall fulfill the tax payment obligation.

2. To-be-split, to-be-consolidated or to-be-merged enterprises shall fulfill the tax payment obligation before the splitting, consolidation or merger. If they fail to fulfill tax payment obligation, the split enterprises and enterprises newly founded on the basis of the split enterprises, consolidating enterprises or merging enterprises shall fulfill the tax payment obligation.

3. Enterprises subject to ownership transformation shall fulfill the tax payment obligation before the transformation. If the transformed enterprises fail to fulfill the tax payment obligation, enterprises newly founded on the basis of the transformed enterprises shall fulfill the tax payment obligation.

4. The reorganization of enterprises does not change the time limit for tax payment by reorganized enterprises. If reorganized enterprises or newly founded enterprises fail to fully pay taxes within the set tax payment time limit, they shall be sanctioned according to the provisions of law.

Article 56.- Inheritance of the tax payment obligation of individuals who are dead, have lost their civil act capacity or are missing according to the civil law

1. The tax payment obligation of persons who are treated by law as dead shall be fulfilled by their heirs with the property left by the dead or property portions divided to those heirs at the time of inheritance acceptance. In case of no heirs or in case all heirs renounce the inheritance property, the tax payment obligation of the deceased shall be fulfilled in accordance with the civil law.

2. The tax payment obligation of persons who are missing or have lost their civil act capacity according to the provisions of law shall be fulfilled by managers of property of those persons with their property portions.

3. When a competent state agency cancels a decision on declaration of a person as dead, missing or having lost his/her civil act capacity, his/her tax arrear amount already written off under the provisions of Article 65 of this Law shall be restored and no fine will be imposed for delayed payment for the duration he/she is regarded as dead, missing or having lost the civil act capacity.

Tax administration agencies shall make tax refund for:

1. Organizations and individuals eligible for value added tax refund under the Value Added Tax Law;

2. Organizations and individuals eligible for import duty or export duty refund under the Export Duty and Import Duty Law;

3. Individuals eligible for personal income tax refund under the law on personal income tax;

4. Business organizations and individuals eligible for special consumption tax refund under the Special Consumption Tax;

5. Organizations and individuals that have paid other taxes into the state budget in excess of their payable tax amounts.

Article 58.- Tax refund dossiers

1. A tax refund dossier comprises:

a/ Written claim for tax refund;

b/ Tax payment vouchers;

c/ Other documents related to the tax refund claim.

2. Tax refund dossiers shall be submitted to tax administration agencies directly managing taxpayers or to customs offices competent to make tax refund.

1. If tax refund dossiers are submitted directly to tax administration agencies, tax administration officers shall receive and affix the seal of receipt, indicating the date of receipt and the number of documents included in the dossiers.

2. If tax refund dossiers are sent by mail, tax administration officers shall affix the seal indicating the date of dossier receipt and record the receipt of the dossiers in the incoming mail books of tax administration agencies.

3. If tax refund dossiers are electrically submitted, the receipt, examination and acceptance thereof shall be conducted by tax administration agencies through electronic data processing systems.

4. If tax refund dossiers are incomplete, tax administration agencies shall, within three working days after receiving dossiers, notify such to taxpayers for completion of their dossiers.

Article 60.- Responsibilities of tax administration agencies for processing of tax refund dossiers

1. Tax refund dossiers shall be classified as follows:

a/ Dossiers eligible for tax refund before examination are those of taxpayers who have properly observed tax law and have their transactions paid for via commercial banks or other credit institutions.

The Government shall specify the classification of dossiers eligible for tax refund before examination;

b/ Dossiers not specified at Point a of this Clause shall be examined before tax refund is made.

2. For dossiers eligible for tax refund before examination, tax administration agencies shall, within fifteen days after receiving complete tax refund dossiers, decide on tax refund, notify that dossiers shall be examined before tax refund or notify the reason(s) for refusal of tax refund.

3. For dossiers that are examined before tax refund, tax administration agencies shall, within sixty days after receiving complete tax refund dossiers, decide on tax refund or notify the reason(s) for refusal of tax refund.

4. If tax administration agencies issue tax refund decisions after the time limit specified in Clauses 2 and 3 of this Article due to their fault, they shall, apart from refunding tax amounts, pay interests thereon according to the Government’s regulations.

Section 1. PROCEDURES FOR TAX EXEMPTION 

Tax administration agencies shall give tax exemption or reduction to cases eligible for tax exemption or reduction defined in legal documents on tax.

1. In case taxpayers determine by themselves tax amounts to be exempted or reduced, a tax exemption or reduction dossier comprises:

a/ Tax return;

b/ Documents related to the determination of the tax amount to be exempted or reduced.

2. In case tax administration agencies decide on tax exemption or reduction, a tax exemption or reduction dossier comprises:

a/ Written request for tax exemption or reduction, clearly stating the tax the exemption or reduction of which is requested; reasons for tax exemption or reduction; and the tax amount proposed to be exempted or reduced;

b/ Documents related to the determination of the tax amount to be exempted or reduced.

3. The Government shall specify cases where taxpayers determine by themselves tax amounts to be exempted or reduced; and cases where tax administration agencies decide on tax exemption or reduction.

1. If taxpayers determine by themselves tax amounts to be exempted or reduced, the submission and receipt of tax exemption or reduction dossiers shall be conducted simultaneously with the tax declaration, submission and receipt of tax declaration dossiers defined in Chapter III of this Law.

2. If tax administration agencies decide on tax exemption or reduction according to the provisions of law, the submission and receipt of tax exemption or reduction dossiers are specified as follows:

a/ For export duty, import duty and other taxes on exports and imports, dossiers shall be submitted to customs offices with processing competence;

b/ For other taxes, dossiers shall be submitted to tax agencies directly managing taxpayers.

3. The receipt of tax exemption or reduction dossiers is specified as follows:

a/ If tax exemption or reduction dossiers are submitted directly to tax administration agencies, tax administration officers shall receive and affix the seal of receipt of the dossiers, indicating the date of receipt and the number of documents included in the dossiers;

b/ If tax exemption or reduction dossiers are submitted by mail, tax administration agencies shall affix the seal of receipt, indicating the date of receipt and record the receipt of the dossiers in their incoming mail books;

c/ If tax exemption or reduction dossiers are electronically submitted, the receipt, examination and acceptance of those dossiers shall be conducted by tax administration agencies through electronic data processing systems;

d/ If tax exemption or reduction dossiers are incomplete according to regulations, tax administration agencies shall, within three working days after receiving those dossiers, notify such to taxpayers for completion of their dossiers.

1. Within thirty days after receiving complete dossiers, tax administration agencies shall issue decisions on tax exemption or tax reduction or notify taxpayers of reasons for their ineligibility for tax exemption or reduction.

2. When necessary to conduct inspection to obtain sufficient grounds for handling dossiers, the time limit for issuing decisions on tax exemption or reduction is sixty days from the date of receipt of complete dossiers.

Section 2. REMISSION OF TAX ARREARS OR FINES

1. Enterprises that have been declared bankrupt and made payments according to the bankruptcy law and therefore have no assets to pay taxes or fines.           

2. Individuals who are deemed by law as dead, missing or having lost their civil act capacity and have no asset to pay tax arrears or fines.

Article 66.- Dossiers for tax arrear or fine remission

A tax arrear or fine remission dossier comprises:

1. Written request for tax arrear or fine remission, made by the tax administration agency directly managing the taxpayer eligible for tax arrear or fine remission;

2. Declaration for tax finalization, for enterprises declared bankrupt;

3. Documents related to the request for tax arrear or fine remission.

Article 67.- Competence to remit tax arrears or fines

1. The Finance Minister remits tax arrears or fines for the cases specified in Article 65 of this Law.

2. The Finance Minister shall report to the National Assembly on annually remitted tax and fine amounts when the Government submits to the National Assembly for approval the general settlement of the state budget.

Article 68.- Responsibilities for receipt and handling of tax arrear or fine remission dossiers

1. Tax administration agencies directly managing taxpayers shall compile and send tax arrear or fine remission dossiers to superior tax administration agencies.

2. If tax arrear or fine remission dossiers are incomplete, superior tax administration agencies shall, within fifteen working days after receiving the dossiers, notify such to the tax administration agencies that have compiled those dossiers for completion thereof.

3. Within sixty days after receiving complete tax arrear or fine remission dossiers, competent persons shall issue decisions on debt remission or notify that the cases are ineligible for tax arrear or fine remission.

1. The system of information on taxpayers consists of information and documents related to the tax liability of taxpayers.

2. Information on taxpayers serves as a basis for tax administration, appraisal of the degree of law observance by taxpayers, and prevention and detection of tax law violations.

3. Acts of falsifying, misusing, illegally accessing information on taxpayers or destroying the system of information on taxpayers are strictly prohibited.

1. Tax administration agencies shall organize the building, management and development of database and technical infrastructure of the system of information on taxpayers; organize specialized units in charge of collecting and processing information, managing the database and ensuring the maintenance and operation of the system of information on taxpayers.

2. Tax administration agencies shall apply necessary professional measures to collect and process information to meet objectives and requirements of each period.

3. Tax administration agencies shall coordinate with concerned agencies, organizations and individuals in exchanging information and setting up online connection.

4. The Finance Ministry shall issue specific regulations on the building and management of the system of information on taxpayers and collection and processing of information on taxpayers.

Article 71.- Responsibilities of taxpayers in supplying information

1. To supply sufficient information in tax dossiers.

2. To supply information related to the determination of the tax liability upon request of tax administration agencies.

3. To supply information to tax administration agencies in an adequate, accurate, truthful and timely manner.

1. The following agencies shall supply information on taxpayers to tax administration agencies:

a/ Agencies granting business registration certificates and agencies granting establishment and operation licenses shall supply information on contents of business registration certificates, establishment and operation licenses or certificates of changes in business registration of organizations and individuals to tax administration agencies within seven working days after granting those certificates or licenses; and supply other information upon request of tax administration agencies;

b/ The State Treasury shall supply information on paid or refunded tax amounts of taxpayers to tax administration agencies.

2. The following agencies shall supply information upon request of tax administration agencies:

a/ Commercial banks and other credit institutions shall supply information on contents of account transactions of taxpayers within ten working days after receiving information requests of tax administration agencies;

b/ State management agencies in charge of houses and land shall supply information on the actual land use or house ownership of organizations, households and individuals;

c/ Police offices shall supply and exchange information related to the prevention and combat of tax-related crimes; supply information on individuals on exit or entry and information on vehicle registration and management;

d/ Income-paying agencies shall supply information on payment of incomes and withheld tax amounts of taxpayers upon request of tax administration agencies;

e/ Trade administration agencies shall supply information on policies on control of exported, imported or transited goods of Vietnam and foreign countries; and information on market supervision.

3. State agencies, other organizations and individuals shall supply information on taxpayers upon request of tax administration agencies.

4. Information shall be supplied or exchanged in written or electronic form.

5. The Government shall issue detailed regulations on the supply and management of information on taxpayers.

Article 73.- Confidentiality of information on taxpayers    

1. Tax administration agencies, tax administration officers, former tax administration officers and organizations providing services of carrying out tax procedures shall keep confidential information on taxpayers according to law, except for the cases specified in Clause 2 of this Article.

2. Tax administration agencies shall supply information on taxpayers to the following agencies:

a/ Investigative bodies, Procuracies, Courts;

b/ State inspection and audit agencies;

c/ Other state management agencies defined by law;

d/ Foreign tax authorities, in accordance with tax treaties to which the Socialist Republic of Vietnam is a contracting party.

Article 74.- Disclosure of information on tax law violations

Tax administration agencies may disclose information on tax law violations of taxpayers on the mass media in the following cases:

1. Taxpayers evade taxes, commit tax frauds, or intentionally delay tax payment;

2. Taxpayers commit tax law violations, thus affecting benefits and tax payment obligations of other organizations and individuals;

3. Taxpayers fail to satisfy requests of tax administration agencies according to law.

Chapter X

TAX EXAMINATION, TAX INSPECTION

Section 1. GENERAL PROVISIONS ON TAX EXAMINATION AND 

1. Tax examination and tax inspection shall be conducted on the basis of analysis of information and data on taxpayers, assessment of law observance of taxpayers, verification and collection of proofs to identify acts of tax law violation.

2. Tax examination and tax inspection may not obstruct normal operation of agencies, organizations and individuals being taxpayers.

3. Tax examination and tax inspection must comply with the provisions of this Law and other relevant laws.

1. Based on tax examination and tax inspection results, heads of tax administration agencies shall issue decisions on tax handling, sanctioning of administrative violations according to their competence or request competent persons to issue decisions on sanctioning of administrative violations in the tax domain.

2. If, through tax examination and tax inspection, an act of tax evasion showing criminal signs is detected, tax administration agencies shall, within ten working days after the detection, transfer the dossier thereof to a competent agency for investigation according to the criminal procedure law. Tax administration agencies shall coordinate with investigative bodies in investigating into tax-related crimes according to law.

Section 2. TAX EXAMINATION

1. Tax examination at offices of tax administration agencies shall be conducted on a regular basis on tax dossiers in order to assess the completeness and accuracy of information and vouchers in tax dossiers, and compliance with tax law by taxpayers.  

2. When checking tax dossiers, tax administration officers shall compare the contents of tax dossiers with relevant information and documents, legal provisions on tax, and results of the actual checking of exports and imports when necessary.

3. Processing of tax examination results is specified as follows:

a/ If a violation which leads to tax underpayment, tax evasion or tax fraud is detected through tax examination in the course of carrying out customs procedures,  taxpayers shall pay sufficient tax amounts and be imposed fines according to the provisions of this Law and other relevant laws.

b/ If tax dossiers have unclear contents related to payable, exempted, reduced or refunded tax amounts, tax administration agencies shall notify and request taxpayers to explain them or supplement information and documents. If taxpayers are able to explain unclear contents and supplement information and documents to prove the accuracy of the declared tax amounts, then their tax dossiers are accepted. If the explanations and supplemented documents cannot prove the accuracy of the declared tax amounts, tax administration agencies shall request taxpayers to make supplementary declarations.

c/ Upon the expiration of the time limit notified by tax administration agencies, if taxpayers fail to explain unclear contents or supplement information and documents or make supplementary declarations in their tax dossiers, or improperly explain unclear contents or improperly make supplementary declarations in their tax dossiers, heads of tax administration agencies directly managing taxpayers shall assess payable tax amounts or issue decisions on tax examination at offices of taxpayers.

d/ For exported goods or imported goods after customs clearance, if customs offices detect that their tax dossiers have unclear contents related to tax liability or exempted, reduced or refunded tax amounts, customs offices shall request taxpayers to explain those contents or supplement information and documents. If taxpayers are able to explain unclear contents and supplement information and documents to prove the accuracy of the declared tax amounts, then their tax dossiers are accepted. If taxpayers fail to prove the accuracy of the declared tax amounts or upon the expiration of the set time limit they fail to explain unclear contents, heads of customs offices shall assess payable tax amounts or issue decisions on tax examination at offices of taxpayers.

e/ Tax examination decisions shall be sent to taxpayers within three working days from the date of their signing. Within five working days after receiving tax examination decisions, if taxpayers can prove the accuracy of their declared tax amounts or fully pay payable tax amounts, tax administration agencies shall cancel the tax examination decisions.

Article 78.- Tax examination at offices of taxpayers   

1. Cases of tax examination at offices of taxpayers:

a/ Cases specified at Points c and d, Clause 3, Article 77 of this Law;

b/ Cases of post-customs clearance examination, including planned examination and sample examination, to assess the tax law observance, and inspection of exported goods or imported goods that show signs of tax law violation after customs clearance.

If signs of tax evasion or tax fraud are detected in the post-customs clearance examination, the director of the Department for Post-Customs Clearance Examination, directors of Customs Departments and directors of Sub-Departments for Post-Customs Clearance Examination may decide to apply the measures specified in Section 4 of this Chapter.

2. Order and procedures for tax examination are specified as follows:

a/ Announcing the tax examination decision at that start of tax examination;

b/ Comparing the declared contents with accounting books and documents, financial statements, relevant documents and real situation within the scope and contents of tax examination decision;

c/ Conducting tax examination within five working days from the date the examination decision is announced. In case of planned examination for exported goods or imported goods, this time limit is fifteen days;

d/ When necessary, the tax examination duration under the tax examination decision can be extended once but the extension must not exceed the time limit specified at Point c of this Clause;

e/ Making a written record of tax examination within five working days from the date of expiration of the examination time limit;

f/ Handling the violations according to competence or transferring them to competent authorities for handling according to examination results.

1. Taxpayers have the following rights:

a/ To reject examination if there is no tax examination decision;

b/ To refuse to supply information and documents irrelevant to tax examination contents; information and documents pertaining to state secrets, unless otherwise provided for by law;

c/ To receive the written records of tax examination and request explanations of the contents of the written records;

d/ To reserve their opinions in the written records of tax examination;

e/ To lodge complaints, institute lawsuits and claim damages according to law;

f/ To denounce acts of law violation in the course of tax examination.

2. Taxpayers have the following obligations:

a/ To comply with tax examination decisions of tax administration agencies;

b/ To promptly, fully and accurately supply information and documents relevant to the examination contents upon request of tax examination teams; to take responsibility before law for the accuracy and truthfulness of supplied information and documents;

c/ To sign the written records of tax administration within five working days from the date of completion of examination;

d/ To comply with decisions on handling based on the tax examination results.

Article 80.- Tasks and powers of heads of tax administration agencies that issue tax examination decisions and tax administration officers in tax examination

1. Heads of tax administration agencies that issue tax examination decisions have the following tasks and powers:

a/ To direct examination according to the tax examination decisions in terms of content and time;

b/ To apply the measures of temporarily seizing documents and exhibits related to acts of tax evasion or tax fraud specified in Article 90 of this Law;

c/ To extend the examination time limit when necessary;

d/ To issue decisions on tax handling or sanctioning of administrative violations according to their competence, or to request competent persons to issue decisions on sanctioning of administrative violations;

e/ To settle complaints and denunciations about administrative acts or decisions of tax administration officers.

2. Tax administration officers while conducting tax examination have the following tasks and powers:

a/ To strictly comply with the contents and time limit stated in tax examination decisions;

b/ To request taxpayers to supply information and documents relevant to the examination contents;

c/ To make written records of tax examination; to report on examination results to persons who have issued examination decisions and take responsibility for the accuracy, truthfulness and objectiveness of those written records and reports;

d/ To sanction administrative violations according to their competence or propose competent persons to issue decisions on handling of violations.

Section 3. TAX INSPECTION

1. Tax inspection shall be conducted on a regular basis no more than once a year for enterprises with diversified business lines and a wide scope of business.

2. When there is a sign of tax law violation.

3. Tax inspection shall be conducted to settle complaints or denunciations or upon request of heads of tax administration agencies at all levels or of the Finance Minister.

1. Heads of tax administration agencies at all levels are competent to issue tax inspection decisions.

2. A tax inspection decision must have the following contents:

a/ Legal ground(s) for tax inspection;

b/ Subject, content, scope and tasks of tax inspection;

c/ Duration of tax inspection;

d/ Head and other members of the tax inspection team.

3. Within three working days after its signing, a tax inspection decision shall be sent to the inspected subject.

A tax inspection decision shall be notified within fifteen days from the date of issuance.

Article 83.- Tax inspection duration

1. A tax inspection duration must not exceed thirty days from the date of notification of the tax inspection decision.

2. In case of necessity, tax inspection decision issuers may prolong the tax inspection duration. The prolonged duration must not exceed thirty days.

Article 84.- Tasks and powers of tax inspection decision issuers

1. A tax inspection decision issuer has the following tasks and powers:

a/ To direct and check to ensure that the tax inspection team strictly observe the contents and duration stated in the tax inspection decision;

b/ To request the inspected subject to supply information and documents, report in writing and explain matters related to the inspection contents; to request agencies, organizations and individuals having information and documents related to the inspection contents to supply such information and documents;

c/ To apply the measures specified in Articles 89, 90 and 91 of this Law;

d/ To solicit expert assessment of matters related to the tax inspection contents;

e/ To suspend or propose competent persons to stop an act when they consider that act is seriously detrimental to benefits of the State, lawful rights and benefits of agencies, organizations and individuals;

f/ To handle according to his/her competence or propose competent persons to handle tax law violations; inspect and urge the execution of handling decisions after tax inspection;

g/ To settle complaints and denunciations about the responsibility of the head and other members of the tax inspection team;

h/ To make conclusions on the tax inspection contents.

2. When performing the tasks and exercising the powers specified in Clause 1 of this Article, tax inspection decision issuers shall be held responsible before law for their decisions.

Article 85.- Tasks and powers of heads and members of tax inspection teams   

1. Head of a tax inspection team has the following tasks and powers:

a/ To organize tax inspection and instruct members of the tax inspection team to strictly observe the inspection contents, subject and duration stated in the tax inspection decision;

b/ To request the inspected subject to supply information and documents, report in writing and explain matters related to the tax inspection contents; to conduct, when necessary, an inventory of assets of the inspected subject that are related to the tax inspection contents;

c/ To apply the measure specified in Article 90 of this Law;

d/ To make a written record of tax inspection;

e/ To report to the tax inspection decision issuer on the inspection results and bear responsibility for the accuracy, truthfulness and objectiveness of that report;

f/ To impose administrative sanctions according to his/her competence or propose competent persons to issue decisions on handling of violations;

2. Members of a tax inspection team have the following tasks and powers:

a/ To perform the tasks assigned by the head of the tax inspection team;

b/ To propose matters related to the tax inspection contents for handling;

c/ To report the results of performance of their assigned tasks to the head of the tax inspection team.

3. When performing the tasks and exercising the powers specified in this Article, heads and members of tax inspection teams shall be held responsible before law for their decisions and acts.

Article 86.- Obligations and rights of subjects of tax inspection

1. Subjects of tax inspection have the following obligations:

a/ To comply with the tax inspection decisions;

b/ To supply in a prompt, complete and accurate manner information and documents related to the inspection contents upon request of tax administration agencies, heads of tax inspection teams and take responsibility before law for the accuracy and truthfulness of the supplied information and documents;

c/ To satisfy the tax inspection requests and abide by the tax inspection conclusions and handling decisions of tax administration agencies, heads of tax inspection teams and competent state agencies;

d/ To sign the inspection written records within five working days after the tax inspection is completed.

2. Subjects of tax inspection have the following rights:

a/ To explain matters related to the tax inspection contents;

b/ To reserve their opinions in the tax inspection written records;

c/ To refuse to supply information and documents irrelevant to the tax inspection contents, information and documents pertaining to state secrets, unless otherwise provided for by law;

d/ To complain with tax inspection decision issuers about decisions and acts of heads and members of tax inspection teams when having grounds to believe that those decisions or acts are unlawful. Pending the settlement of their complaints, to comply with those decisions;

e/ To request compensations for damage according to law;

f/ To denounce acts of law violation of heads of tax administration agencies, heads and members of tax inspection teams.

Article 87.- Tax inspection conclusions  

1. Within fifteen days after receiving reports on the tax inspection results, tax inspection decision issuers shall make written tax inspection conclusions. A tax inspection conclusion must have the following contents:

a/ Assessment of the observance of tax law by the inspected subject that falls within tax inspection contents;

b/ Conclusion on the contents subject to tax inspection;

c/ Clear determination of the nature and severity of violation, reasons, and responsibilities of agencies, organizations or individuals that commit acts of violation (if any);

d/ Handling of the administrative violation according to the decision issuer’s competence or recommendations on the handling by a competent person according to law.

2. In the course of making written inspection conclusions, inspection decision issuers may request heads or members of inspection teams to report, or request inspected subjects to explain and further clarify matters necessary for the making of tax inspection conclusions.

Section 4. MEASURES APPLIED IN TAX INSPECTION TO CASES SHOWING SIGNS OF TAX EVASION OR TAX FRAUD

1. When taxpayers show signs of tax evasion or tax fraud involving other organizations or individuals.

2. When signs of tax evasion or tax fraud are complicated.

Article 89.- Collection of information on acts of tax evasion or tax fraud

1. Heads of tax administration agencies may request organizations or individuals that have information on acts of tax evasion or tax fraud to supply such information in writing or verbally.

2. When receiving requests of heads of tax administration agencies for supply of information in writing, organizations and individuals shall supply information with the contents, within the time limit and to the address as requested and bear responsibility for the accuracy and truthfulness of the supplied information. If they fail to supply information, they shall reply in writing clearly stating reasons for the failure.

3. When receiving requests of heads of tax administration agencies for supply of information in the verbal form, persons requested to supply information shall present themselves at the time and place indicated in the written requests to supply information according to the requested contents and bear responsibility for the accuracy and truthfulness of information of supplied information. If they fail to present themselves, they shall reply in writing clearly stating reasons for the failure.

In the course of collection of information in the verbal form, tax inspectors shall make written records thereof and public audio-visual recording is allowed.

Article 90.- Temporary seizure of documents and exhibits related to acts of tax evasion or tax fraud

1. Heads of tax administration agencies or tax inspection teams may decide on temporary seizure of documents and exhibits related to acts of tax evasion or tax fraud.

2. Temporary seizure of documents and exhibits related to acts of tax evasion or tax fraud shall apply when it is necessary to verify circumstances for making decisions on handling or prompt prevention of acts of tax evasion or tax fraud.

3. In the course of tax inspection, if inspected subjects show signs of dispersion or destruction of documents and exhibits related to acts of tax evasion or tax fraud, tax inspectors on duty may temporarily seize those documents and exhibits. Within twenty four hours after temporarily seizing documents and exhibits, tax inspectors shall report to heads of tax administration agencies or tax inspection teams for issuance of decisions on temporary seizure of documents and exhibits. Within eight working hours after receiving the reports, competent persons shall consider and issue temporary seizure decisions. If competent persons do not agree with the temporary seizure, tax inspectors shall return documents and exhibits within eight working hours.

4. When temporarily seizing documents and exhibits related to acts of tax evasion or tax fraud, tax inspectors shall make written records of temporary seizure. This written record must clearly state the names, quantity and types of temporarily seized documents and exhibits, and bear signatures of the person who temporarily seizes and the person who manages documents and exhibits. Issuers of temporary seizure decisions shall preserve temporarily seized documents and exhibits and be held responsible before law if those documents and exhibits are lost, sold, exchanged or damaged.

In case of necessity to seal up documents and exhibits, the sealing must be conducted in the presence of owners of those documents and exhibits. When owners of documents and exhibits are absent, the sealing shall be conducted in the presence of representatives of their families or organizations, local administration and witnesses.

5. Exhibits being Vietnamese currency, foreign currencies, gold, silver, gems, precious metals and objects under special management shall be preserved according to law; for exhibits being perishable goods or articles, temporary seizure decision issuers shall make written records thereof and promptly sell them to avoid any loss. Proceeds from the sale of exhibits shall be transferred into custody accounts opened at the State Treasury so as to ensure full collection of tax and fine amounts.

6. Within ten working days after the temporary seizure, temporary seizure decision issuers shall dispose of the temporarily seized documents and exhibits by taking measures stated in the disposal decisions or return them to individuals and organizations when confiscation of temporarily seized documents and exhibits is not applied. The time limit for temporary seizure of documents and exhibits may be prolonged for complicated cases which need verification but must not exceed sixty days after the date documents and exhibits are temporarily seized. The prolongation of the time limit for temporary seizure of documents and exhibits shall be decided by competent persons defined in Clause 1 of this Article.

7. Tax administration agencies shall send copies of the temporary seizure decision, temporary seizure written record and decision on disposal of documents and exhibits related to acts of tax evasion or tax fraud to organizations or individuals whose documents and exhibits are temporarily seized.

Article 91.- Search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud

1. Heads of tax administration agencies may decide on search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud. If the hiding place of documents and exhibits related to acts of tax evasion or tax fraud is a place of residence, written approval of competent persons defined by law is required.

2. Search of a place shall be conducted when there is a ground to believe that documents and exhibits related to an act of tax evasion or tax fraud are hidden there.

3. Search of a hiding place of documents and exhibits shall be conducted in the presence of its owner and witnesses. When the owner of a searched place is absent and the search cannot be delayed, the presence of representatives of the local administration and two witnesses is required.

4. Search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud shall not be conducted at night, on holidays or when owners of searched places proceed with weddings or funerals, except when illegal acts are caught on flagrant delicto and the reasons for the search shall be clearly stated in the written records.

5. All cases of search of hiding places of documents and exhibits related to acts of tax evasion or tax fraud must be decided and recorded in writing. A copy of the decision on and written record of search of a hiding place shall be handed to the owner of the searched place.