Tax dispute settlement representative in Vietnam

Tax disputes are conflicts or disagreements that arise between taxpayers and tax authorities related to the performance of tax obligations. These disputes may revolve around the amount of tax payable, tax administration measures, as well as decisions to sanction administrative violations in the field of taxation. Here, Viet An Tax Agent will provide customers with an overview of the steps to resolve tax disputes, helping to protect the legitimate interests of businesses.

Common disputes in the field of taxation in Vietnam

Disputes in the field of taxation often originate from many different causes. Clearly identifying common types of disputes will help businesses improve their ability to be proactive in risk prevention and promptly handle problems when they arise.

Some common disputes include:

In addition, there are disputes related to the time of tax calculation, the method of tax calculation and the application of new tax regulations. Each type of dispute has its own peculiarities and needs to be handled appropriately.

To minimize the risk of disputes, businesses need to:

• Regularly update and monitor changes in tax policies and legal regulations in order to promptly adjust accounting and tax declaration activities appropriately.
• Completely, accurately and systematically store dossiers and documents related to tax obligations, including invoices, contracts, declarations and other supporting documents, to ensure a solid basis in case of comparison or explanation to the authorities.
• Consult with experts or professional tax consultants when encountering complex, sensitive or potentially risky issues.

Directions for handling disputes in the field of taxation in Vietnam

Explanation of the content of the violation notice

When receiving a notice of violation from the tax authority, the first step that businesses need to take is to explain the content of the violation. This is an important opportunity to clarify issues and avoid unnecessary misunderstandings.

The accountability process typically includes the following steps:

• Step 1: Carefully study the content of the violation notice. Enterprises need to clearly analyze each alleged violation point, compare it with actual activities and current legal regulations to determine the nature and extent of the problem.
• Step 2: Collect all relevant documents and documents. This is an important step to help businesses build a solid basis to defend their views, including economic contracts, invoices, accounting books, payroll, financial statements, or previous explanatory official letters.
• Step 3: Prepare a detailed, clear and systematic explanation document. This document needs to honestly reflect the situation, logically explain the alleged violations and give convincing legal arguments.

When drafting an explanatory document, enterprises need to:

• Present briefly, concisely but informatively and to the point. Avoid unnecessary lengthy listings, focusing on the issues that the tax authorities are questioning
• Refer specifically to relevant legal provisions. Accurately citing legal documents helps increase persuasiveness and prove that the business complies with regulations.
• Provide specific evidence and data to support the business’s point of view. Financial data and actual documents will be an important basis to refute incomplete conclusions or misunderstandings from the tax authorities

Effective accountability can help businesses solve problems at an early stage, avoiding having to conduct more complicated complaint procedures later.

Complaint Procedure

In case the explanation does not achieve the expected results, or the tax authority still maintains the same handling viewpoint, the enterprise has the right to carry out complaint procedures in accordance with the law. This is the next step in the process of resolving tax disputes, demonstrating the right of taxpayers to protect their legitimate interests against administrative decisions that are considered inappropriate, unobjective or illegal. However, in order for complaints to be effective, enterprises need to be carefully prepared, both in content and form, and especially must fully and in accordance with the provisions of the Law on Complaints 2011 and relevant guiding documents.

The grievance procedure usually includes the following main steps:

When carrying out complaint procedures, enterprises should note:

• Comply with the time limit for complaints as prescribed by law. Specifically, the complainant must submit an application within 90 days from the date of receipt or knowledge of the administrative decision showing signs of violation. Filing outside the deadline will result in the request being rejected in the first place.
• Provide sufficient documents and documents to prove the complaint request. Businesses should prepare data, accounting records, contracts, working minutes or opinions of legal experts to strengthen their arguments
• Clearly and logically require, convincingly, with specific references to relevant legal provisions. The written complaint should clearly show the position of the enterprise, clearly indicate the inappropriate points in the decision of the tax authority and propose the direction of handling.

Fully and properly implementing complaint procedures not only helps enterprises protect their legitimate rights and interests but also contributes to ensuring transparency, fairness and objectivity in the State’s tax administration activities.

Prosecution for criminal liability in the field of tax in Vietnam

The issue of criminal liability prosecution in the field of taxation has always been a special concern of many businesses, especially in the context of increasingly tight tax administration activities and increasingly complete legal regulations. Understanding the legal bases, scope of application as well as the boundary between administrative violations and acts considered criminal in the tax field is a prerequisite for businesses to develop effective compliance strategies and prevent legal risks. According to the provisions of current law:

• Administrative violations on taxes are usually only administratively sanctioned
• Examination for penal liability only applies in case of serious violations

The examination of penal liability in the field of taxation for cases of tax evasion. Criminal handling only occurs when there are sufficient elements constituting a crime as prescribed in Article 200 of the Criminal Code 2015, amended and supplemented in 2017

Specifically, this law stipulates criminal sanctions for tax evasion as follows:

• Individuals who commit crimes:
• A fine of between VND 100 million and VND 4 billion 500 million
• Imprisonment for up to 07 years
• Other additional penalties such as: a fine of up to 100 million VND; banned from holding certain positions, practicing certain professions or doing certain jobs for up to 05 years or having part or all of their assets confiscated
• For legal entities committing crimes:
• A fine of between VND 200 million and VND 10 billion
• Suspended from operation for up to 03 years, even permanently suspended if the tax evasion act is particularly serious.
• Additional penalties: a fine of up to 200 million, a ban on business, a ban on activities in some fields or a ban on capital mobilization for up to 03 years

If you have any difficulties or questions related to the tax dispute settlement representative service, please contact Viet An Tax Agent for the most specific advice.