Quyết định 1404/QD-TCT

DECISION

ON ISSUANCE OF TAX INSPECTION PROCEDURE

THE DIRECTOR GENERAL OF TAXATION

Pursuant to the Law on Inspection No. 56/2010/QH12 dated November 15, 2010 and its instructional documents;

Pursuant to the Law on Tax Administration No.78/2006/QH11 dated November 29, 2006 and the Law on amendment and supplement to a number of articles of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012 and its instructional documents;

Pursuant to the Decision No. 115/2009/QD-TTg dated September 28, 2009 on functions, powers, responsibilities and the organizational structure of the General Department of Taxation under the Ministry of Finance by Prime Minister;

Pursuant to the Decision No. 109/2009/QD-BTC dated January 14, 2010 on functions, powers, responsibilities and the organizational structure of a Tax Inspectorate;

Pursuant to the Circular No.78/2006/QH11 dated November 06, 2013 guidance on implementation of a number of articles of the Law on Tax Administration, Law on amendment and supplement to a number of articles of the Law on tax Administration and the Decree No. 83/2013/ND-CP dated July 27, 2013 by Government;

Upon the request of Chief Inspector of General Department of Taxation,

DECISION:

Article 1. This Decree is attached with the Tax Inspection Procedure and replaces the Decision No. 74/QD-TCT on issuance of tax inspection procedure dated January 27, 2014; the Decision No. 1116/QD-TCT on supplement to tax inspection procedure form dated on July 24, 2014; the Decision No. 1895/QD-TCT on amending and supplementing tax inspection procedure dated October 21, 2014 by the Director General of the General Department of Taxation.

Article 2. This Decision comes into effect from the day on which it is signed. Heads of Departments, agencies under or similar units under the General Department of Taxation; Directors of Department of Taxation of provinces and central-affiliated cities shall be responsible for implementing this Decree./.

PROCEDURE

TAX INSPECTION
(Attached with the Decision No. 1404/QD-TCT dated July 28 2015 by the Director General of the General Department of Taxation)

Part I

GENERAL PROVISIONS

I. PURPOSES

Standardize all duties in tax inspection.

Ensure the inspection procedure is conformable with Vietnam Law; consistently executed by the General Department of Taxation and Departments of Taxation and satisfy the requirements of taxation reform and modernization.

Enhance the capability of tax inspection; guarantee the objectiveness, openness and transparency in tax inspection.

II. SCOPE OF ADJUSTMENT

This Decision regulates on procedure and process of tax inspection (including re-inspecting the results of tax inspection under point b, c, Clause 1, Article 67 of the Circular No. 156/2013/TT-BTC dated November 06 2011 by the Ministry of Finance) and shall be uniformly applied across all tax authorities with the following main contents: development of the annual inspection plan; site inspection; entry of data and report.

III. REGULATED ENTITIES

Procedure for tax inspection shall be applied to heads of tax authorities, assigned inspectors under the General Department of Taxation and Departments of Taxation of provinces (hereinafter referred to as Departments of Taxation).

Departments participating in tax inspection: tax debt management and enforcement units under Departments of Taxation.

A tax declaration unit: A Division of Tax Accounting under a Department of Taxation.

This procedure for tax inspection shall not apply to independent inspectors.

IV. INTERPRETATION OF TERMS

Terminologies used in this procedure are construed as follows:

1. Tax inspection units: the Inspectorates of the General Department of Taxation; Inspectorates of Departments of Taxation.

2. Heads of Inspection units: the Director and Deputy Directors of the Inspectorate of the General Department of Taxation; Directors and Deputy Directors of Inspectorates of Departments of Taxation.

3. Heads of tax authorities: the Director General and Deputy Directors of the General Department of Taxation, Directors and Deputy Directors of Departments of Taxation.

4. Tax authorities: General Department of Taxation, Departments of Taxation.

5. Assigned inspectors are qualified officials of the authorities assigned to carry out inspections are in conformity with Article 12 of Decree No. 07/2012/ND-CP dated February 09 2012 by Government (hereinafter referred to as tax inspector).

6. If a period is expressed as “day”, it includes days off.

7. If a period is expressed as “working day”, it includes working days of administrative units of the State and excludes days off.

8. The Tax Inspection unit draws the inspection plan.

If a tax authority has two inspection units or more, the Heads of this tax authority shall appoint one division to take charge of making plan, aggregating and reporting on tax inspection.

Part II

CONTENT OF PROCEDURE

I. DEVELOPMENT OF THE ANNUAL INSPECTION PLAN

1. Preparation of an annual inspection plan

1.1. Collection and use of taxpayer’s data and information.

Tax inspection units shall collect taxpayer’s data and information from the following sources:

a) Taxpayer’s data and information from tax authorities (consisting of electronic database system and other sources) includes:

- Tax declarations, tax refund applications, invoice reports and others submitted to tax authorities by taxpayers under Vietnam Regulations.

- Financial Statements of taxpayers.

- Information on financial status and business conditions of taxpayers;

- Level of the observance of law on taxation; tax declaration, tax payment, tax inspection, results of tax inspection in the previous year; tax exemption or reduction, etc,. .

- Other information (if any)

b)Database and information of a taxpayer outside the tax authority (if any): data from the State Audit Office of Vietnam, the Government Inspectorate; management organizations under Ministries, Departments and Business Associations; information from communication and information agencies, the media and the press; report on tax evasion or tax fraud, etc,.

1.2. Orientation of Inspection Plan.

The General Department of Taxation shall annually issue instructional documents on tax inspection plan before October 15 according to the guidance on development of a financial inspection of the Ministry of Finance and requirements for tax administration.

Pursuant to instructional documents on inspection plan issued by the General Department of Taxation, the Department of Taxation shall annually release its instructional documents on development of inspection plan to the tax inspection units of Department of Taxation not later than October 30.

The inspection plan shall be made on basis of risks analysis and assessment based on the application of the taxpayer’ information analysis of the General Department of Taxation; according to the local reality of tax administration, risky taxpayers shall be chosen to put into inspection plan.

2. Establishment and approval of an annual inspection plan

2.1. At the General Department of Taxation

2.1.1. With regard to the Inspection Plan of the General Department of Taxation

- Upon requests for tax administration and instructional documents on development of an annual inspection of the Ministry of Finance, the Inspectorate of the General Department of Taxation shall make a taxpayer list in the descending order of risks to add to the annual inspection plan of the General Department of Taxation and submit to the Director General of General Department of Taxation by October 10 every year.

- The General Director of the General Department of Taxation adopts the list of taxpayers to include it in the annual inspection plan and submit the plan to the Inspectorate of the Ministry of Finance not later than November 01 every year.

- Pursuant to Decision of the Minister of Finance on approval for the annual inspection plan, the Inspectorate of the General Department of Taxation shall submit to the Director General of the General Department of Taxation and notify the annual inspection plan to the Department of Taxation, under which inspected entity is administrated, coordinate to carry out the plan.

2.1.2. Approval for the Inspection Plan of Departments of Taxation.

According to the annual inspection plan, submitted by the Department of Taxation, the Inspectorate of the General Department of Taxation shall request the General Director of General Department of Taxation to approve and determine the taxpayer list in the annual inspection plan of Departments of Taxation, not later than December 12 every year under the form 01/QTTTr issued together with this procedure.

2.2. At Department of Taxation

On Inspection plans of Departments of Taxation: tax inspection units shall submit the application for the annual inspection plan to the Director General of the General Department of Taxation by November 25 every year upon requests for tax administration and instructional documents on annual inspection plans issued by the General Department of Taxation. The application for plan approval consists of the description of the basis of the plan and the list of inspected taxpayers.

2.3. Handling of repetitions:

- In the event of any taxpayers concurrently listed in the inspection plans of both subordinate tax authority and superior tax authority, the inspection plan of the superior tax authority shall prevail.

- In case, the same taxpayers are concurrently listed in the inspection plans of the Government Inspectorate, State Audit of Vietnam and the Inspectorate of the Ministry of Finance are and that of the tax authority, the former shall be applied.

- The Director General of the General Department of Taxation shall be responsible for handling the repetitions encountered by the subordinates and cooperating with relevant agencies to deal with this problem; report to the Chief Inspector of the Ministry of Finance for decision-making, if necessary.

2.4. Publishing of the annual inspection plan.

The annual inspection plan shall be made publicly available to taxpayers and their supervisory tax authorities within 30(thirty) working days from the date of issuance of the approval for inspection plan.

In the event of any adjustments or changes in the inspection plan due to the repetition in the plan and a superior authority’s plan, these changes must be notified to taxpayers.

2.5. Tax authorities shall estimate and prepare manpower for irregular inspections to meet the requirements for annual tax administration and to fulfill the inspection plan with the best result.

2.6. For inspection plans applicable to large - scale entities like groups or corporations, etc. list of its subsidiaries shall be put into the inspection plan.

3. Adjustment to the annual inspection plan.

3.1. The approved inspection plans shall be adjusted in following cases:

a) The adjustment is requested by the Minister of Finance or heads of superior tax authorities:

According to instructions of the Minister of Finance or Head of superior tax authority, subordinate tax authorities shall draft the adjustment plan and submit it to the competent person to review for approval.

b) The adjustment is requested of the Head of a tax authority:

According to tasks and requirements of tax administration, the Head of tax authority may propose adjustments to the approved annual inspection plan in order to fulfill assigned duties and submit it to the competent person to review for approval, if necessary.

3.2. The power to approve the adjusted annual inspection plan.

a) The Ministry of Finance shall approve the adjusted annual inspection plan of the General Departments of Taxation;

b) The Director General of the General Department of Taxation shall approve adjusted annual inspection plans of Departments of Taxation;

3.3. The procedure for application for proposing adjustments to an inspection plan is the same as the procedure for the annual inspection plan. Besides, the reasons for adjustments shall be specified.

3.4. Tax authorities shall review the execution of the approved annual inspection plan by September 30 every year and submit the annual report on the adjustment to the annual inspection (if any) to the superior tax authority by October 05.

4. Cases subject to surprise inspection.

- Tax offences are suspected.

- The surprise inspection is necessary for settlement of tax complaints and denunciations.

- The surprise inspection is necessary for the process of business division, merger, amalgamation, dissolution, bankruptcy and equalization under Vietnam’s regulations.

- The surprise inspection is requested by the Head of a tax authority of the Minister of Finance.

The surprise inspection is requested by the Head of a tax authority.

5. Re-inspection:

a) The following cases are subject to re-inspection:

- Serious violations against inspection procedures are committed.

- Law is incorrectly applied when drawing an inspection conclusion.

- The inspection conclusion and evidences collected during the inspection re not consistent.

- The decision issuer, the Head of Inspectorate and the member of the Inspectorate, the assigned inspector deliberately falsifies the case files or draws an illegitimate conclusion

- The taxpayer’s serious violations of law are still suspected after the inspection is complete.

b) Time limit for re-inspection is 01 (one) year from the date the inspection conclusion is signed.

II. SITE INSPECTION

1. Preparation and inspection.

1.1. Collection and analysis of documents, determination of contents of the inspection.

According to the annual inspection plan, the heads of Inspection units shall assign inspectors to collect and analyze documents to determine the content of the inspection using the form 02/QTTTr enclosed with this procedure.

 The inspection units shall only take use of existing documents at the tax authority, which were already submitted by taxpayers such as: tax declaration form, tax application or report on invoice, etc., and must not require taxpayers provide additional documents and/or information.

1.2. Issuance of inspection decision.

a) According to the inspection content, the Heads of the Inspection units shall set up an Inspectorate comprising: a head of inspectorate, members of inspectorate, deputy inspectors (if necessary) and request the Directorate of tax authority to approve for the Inspection decision as the form (No. 03/KTTT enclosed in the Circular No. 156/2013/TT-BTC dated November 2011 by the Ministry of Finance)

An application for issuance of an inspection decision including:

- Application form;

- A draft of Inspection decision (including its content and the scope of the inspection);

- Items of analysis using the form No. 02/QTTTr;

- Relevant documents (if any).

b) With regard to surprise inspection, the draft of inspection decision must be attached with the following documents:

- If violations of law on taxation are suspected: Evidences related to the violations of law on taxation.

- For inspection upon a complaint letter or denunciation letter: a complaint or denunciation letter; collected documents and evidences for verification of the complaint or denunciation.

- For inspection for settlement of division, merger, amalgamation, dissolution, bankruptcy and equitization: a written request of the taxpayer

c) For re-inspection in the following cases, the draft of inspection decision must be attached with the case file: tax offences are suspected; law is incorrectly applied when drawing an inspection conclusion, law is incorrectly applied when drawing an inspection conclusion; the surprise inspection is necessary for the process of business division, merger, amalgamation, dissolution, bankruptcy and equitization under Vietnam’s regulations, the decision issuer; the Head of Inspectorate and the member of the Inspectorate, the assigned inspector deliberately falsifies the case files or draws an illegitimate conclusion; the taxpayer’s serious violations of law is still suspected after the inspection is complete.

d) If the taxpayer has subsidiaries: The list of inspected subsidiaries shall be included in the draft of the inspection decision.

đ) Duration of an inspection depends on the nature of each inspection but shall not be exceeding 45 working days for an inspection conducted by the General Department of Taxation and not exceeding 30 working days for an inspection conducted by the Department of Taxation.

e) Circulation of inspection decision:

Administrative units of tax authority shall send the inspection decision to the taxpayer by the registered mail within 03 (third) working days from the date of issuance of inspection decision.

f) The extension of inspection duration:

a) In cases the inspection duration need extending, the Head of Inspectorate submit a report to the head of the inspect oration unit in order for the head of the inspection unit to request the head of tax authority to issue a decision on extension of the inspection duration.

Duration for inspection shall be extended only once under the Decision as the form (No. 18/KTTT issued together with the Circular No. 156/2013/TT-BTC dated November 06 2013 by the Ministry of Finance), and must satisfy the following principles:

- The total duration (including extension time) for an inspection conducted by the General Departments of Taxation shall not be exceeding 70 working days.

- The duration of inspection (including extension time) for an inspection conducted by Departments of Taxation shall not be exceeding 45 working days.

g) Cases of inspection cancellation/ delay.

- If the adopted inspection decision can not be implemented (cancellation of inspection) due to force majeure events such as force majeure event of the taxpayers or taxpayers is under investigation by a competent authority, the Head of Inspectorate shall notify the Head of the Inspectorate to request the Directorate of tax authority for issuance of inspection cancellation decision as the form (No. 19/KTTT the Circular No. 156/2013/TT-BTC dated November 06, 2013 by the Ministry of Finance).           

- In the event that the taxpayer send a written request for delay in inspection, the Head of Inspectorate shall report to the Head of inspection units to request the Head of the tax authority to notify the decision on the inspection delay within 05 (five) working days from the date of receipt of written request from the taxpayer.

- In case of the delay in inspection is on account of the tax authority, the tax authority shall send the taxpayer an Official Dispatch which specifies reasons for delay, the length of delay and resumption time.

1.3. Notification of inspection decision.

After issuance of inspection decision, the Head of the Inspectorate shall be responsible for notify the taxpayer’s representative of the inspection plan including time of inspection, participants etc. by phone call, email or in writing (if necessary).

2. The execution of inspection.

2.1. Notification of tax inspection decision.

a) The Head of the Inspectorate shall notify taxpayers of the inspection decision within 15 working days from the signing date, excluding cases of approved withdrawal of the decision of inspection or delay in inspection as specified in item g, point 1.2, Clause II, session B.

b) When the inspection decision is announced, the Head of the Inspectorate shall:

- Clarify the contents of the inspection decision to taxpayers.

- Introduce members of the inspectorate;

- Specify tasks and powers of the Inspectorate, taxpayer’s rights and obligations and estimate the schedule of the inspection.

- Request taxpayers to provide necessary information related to the execution of inspection.

- In case, the taxpayer’s subsidiaries are also inspected, the Head of inspectorate shall inform such subsidiaries about specific time of inspection.

c) The announcement of inspection decision must be recorded in writing.

The record must be signed by the Head of the inspectorate and the legal representative of the taxpayer and shall be made as the form (No. 05/KTTT enclosed in the Circular No. 156/2013/TT-BTC dated November 06 2013 by the Ministry of Finance).

d) Inspection duration shall be the period from the date of the announcement of inspection decision to the date of completion of the site inspection.

2.2. Site inspection.

a) The Head and members of the Inspectorate have rights to request taxpayers to provide documents related to the inspection such as: accounting records, notes to financial statement, etc,… . The Inspection units shall take use of existing documents at the tax authorities, which were already submitted by taxpayers such as: tax declaration form, tax application, tax return, tax payment or report on invoices, etc., and must not require taxpayers to provide addition documents/ information.

Where the taxpayer uses accounting software (in compliance with regulation on the Circular No. 103/2005/TT-BTC on accounting software criteria and conditions dated November 24, 2005 by the Ministry of Finance), the taxpayer shall provide the Inspectorate with the soft copies of accounting records only.

The Head and members of the Inspectorate must not request the taxpayer to provide irrelevant information or confidential documents of the State, unless otherwise indicated by law.

 The Inspectorate shall be responsible for review, preservation and proper use of such documents and shall not get documents lost.

b) In consideration of accounting records and documents and the application for tax declaration submitted to the tax authority by the taxpayer, the Inspectorate shall:

- Examine and compare the provided documents with the existing documents submitted to the tax authority.

- Compare data on counting records, financial statements and statements of accountability with the tax declaration application for any discrepancies.

- Refer to regulations on law on taxation and its instructional documents applicable at the time to determine for the taxpayer’s observation of law on taxation.

- Deploy inspection techniques for necessary cases.

c) Inspectorate shall request the taxpayer to provide written explanation for unclear documents and/or events in order to draw a conclusion.

 Where the written explanation of taxpayer is still vague or difficult to understand, the Inspectorate shall hold a discussion with the taxpayer in person to clarify the contents and obligations of relevant entities.

This discussion shall be recorded in tape (where necessary) or in writing as the form No. 03/QTTTr. This written record must be signed by the Head of the Inspectorate and the legal representative of the taxpayer.

a) In case the experts’ evaluation/examination related to the conclusion is necessary for drawing the inspection conclusion, the Head of the Inspectorate shall report to the Heads of the Inspection unit and the Heads of the Inspection unit shall request the Heads of the tax authority to conduct an expertise survey. The expertise shall be conducted under regulations on survey of expertise.

 The Head of the inspectorate shall notify the taxpayer of the result of expertise.

đ) The Head of inspectorate has power to seal some or all documents related to the scope of the inspection where necessary.

The decision on seal of documents shall be made under the form (No. 14/KTTT enclosed in Circular No. 156/2013/TT-BTC dated November 06, 2013 by the Ministry of Finance) and the seal record must be attached.

The record must be signed by the Head of inspectorate and the legal representative of the taxpayer as the form (No. 15/KTTT issued together with the Circular No. 156/2013/TT-BTC dated November 06, 2013 by the Ministry of Finance).

Documents shall not be sealed after the inspection is complete.

The use of sealed documents must be permitted by the Head of the inspectorate .

If the seal is no longer necessary, the decision-maker of seal shall release an order of break the seal and make a list of document in which the seal is broken.

 The record must be signed by the Head of the Inspectorate and the legal representative of the taxpayer. The form No. 04/QTTTr on breaking the seal and the record on seal breaking shall be issued together with this procedure.

e) During the execution of the inspection, the Head of the Inspectorate has power to inventory assets within the scope of the inspection decision to make a comparison of assets in the accounting records with that in reality.

It is required to issue a Decision on Inventory as the form (No. 16/KTTT enclosed in the Circular No. 156/2013/TT-BTC dated November 06 2013 by the Ministry of Finance) and to compile a Record specifying the venue of inventory, name of assets, quantity and the status of assets as the form (No. 17/KTTT issued together with the Circular No. 156/2013/TT-BTC dated November 06, 2013 by the Ministry of Finance).

If the inventory is no longer necessary, the decision-maker of the inventory shall release an order of inventory cancellation (as the form No.05/QTTTr).

f) In case the impoundment of money, items or licenses is required, the Inspectorate shall follow the procedure for the impoundment of money, items or licenses as regulated in the Law on Tax Administration and its current instructional documents.

g) According to assigned tasks, members of the Inspectorate shall make a Record of Confirmation of Data Validation under the form 06/QTTTr issued together with this procedure.

 The Record of Confirmation of Data Validation is considered as a basis of making the Record of Inspection.

h) If the execution of inspection is conducted at subsidiaries, the Inspectorate shall make a Record of Inspection for each subsidiary after the site inspection ends.

The Record of Inspection is considered as a basis of the Aggregate Record of Inspection Results.

Unexpected issues that arise during the inspection:

a) Inspection suspension: Any force majeure events occurs during the site inspection leading to the suspension of inspection, the Head of the Inspectorate shall report causes of suspension and duration of suspension to the Heads of the Inspection unit and the Heads of the Inspection unit shall request the decision issuer to decide on announcement of suspension of inspection.

Duration of suspension shall not be included in the duration of the inspection.

b) Additional inspection contents:

If any violations beyond the scope of the inspection are found, the Head of Inspectorate shall inform the Heads of Inspection units to request the issuer to expand the scope of the inspection.

The Head of inspectorate shall report on reasons for addition of the scope of the inspection and submit the draft of the decision on the addition of the scope to the Heads of the inspection unit; and the Heads of the inspection shall request the Heads of a tax authority for approval for as the form no. 11/QTTTr enclosed with this procedure.

a) Replacement of the Head and/or members of the Inspectorate: If changes in Inspectorate personnel (replacements of the Head/ member of the Inspectorate or addition of members) are necessary, the Directorate of Inspection units shall request Heads of the tax authority to review for approval for this restructure.

 The Decision of replacement of the Head of the Inspectorate shall be made as the form No. 12/QTTTr. The Decision of replacement of the member of the inspectorate (other addition of new members) shall be made as the form 13/QTTTr attached with this procedure.

2.4. Report on Inspection Progress.

a) The Head of the Inspectorate shall be responsible for making regular report on the Inspection Progress every 10 (ten) days or the irregular report as requested by the Heads of the tax authority and submit it to the Heads of the tax authority.

b) The report on inspection progress shall be made in writing as the form (No. 21/KTTT attached with the Circular No. 156/2013/TT-BTC dated November 06 2013 by the Ministry of Finance) including the following items: Deployed tasks; finished tasks; executing tasks; on-going tasks; disadvantages, concerns (if any) and proposed solutions.

2.5. Preparation of the inspection record.

a) The Inspectorate shall draw up the Record of Inspection based on the Record of Confirmation of Data validation and the Record of Inspection at subsidiary’s premise (if any).

 The drafted Record of Inspection shall be adopted by the Inspectorate and notified to taxpayers.

In case of any divergences of member of the Inspectorate, the Head of inspectorate has power to make decision and shall be responsible for his/her decision. Members of the Inspectorate can preserve data as their Record of Confirmation of Data validation.

b) The Record of Inspection shall be signed by the Head of the Inspectorate and the legal representative of taxpayer as the form (No. 04/KTTT enclosed with the Circular No. 156/2013/TT-BTC dated November 06, 2013 by the Ministry of Finance).

c) Number of the Record of Inspection shall depend on the nature of the inspection and the scope of inspection. However, it shall be made at least in triplicate and each party (the taxpayer, the inspectorate and the tax authority) shall keep one copy.

The Record of Inspection shall specify the number of page and annexes (if any); each page shall be signed by the Head of Inspector and the legal representative of taxpayer and shall be borne taxpayer’s stamp (affixed seal and seal at the end of the record), where the taxpayer is organization with its own stamp.

d) If the taxpayer does not sign the Record of Inspection after the inspection ends, the Head of the inspectorate shall make a record of administrative penalty and report to the Heads of the Inspection unit and the Heads of the Inspection unit shall request the tax authority to release a notice of administrative penalty and request the taxpayer to sign the Record of Inspection within 05 (five) working days from the date of announcement of the Record of Inspection.

 If the taxpayer continues to refuse to sign the Record of Inspection, the Head of the tax authority shall release a Decision on administrative penalty, enforcement of tax and conclusion of the inspection within 30 working days (thirty) from the date of announcement of the Record of Inspection.

đ) Any difficulties in policies or mechanism related to the inspection in the time of drafting Record of Inspection shall be report to the Heads of Inspectorate unit to request for solutions.

 The Heads of the Inspectorate unit shall transfer the cases beyond its competence to the tax authority.

e) If competent agencies fail to deliver the result of expertise or solutions related to policies on inspection, the Head of inspectorate shall record these difficulties in a Record and have taxpayer sign this Record.

 After receiving the result of expertise, answers and solutions from competent agencies, the Inspectorate shall develop an Annex of the Record of Inspection using the form No. 07/QTTTr in this procedure.

3. End of inspection.

3.1. Report on the result of inspection and draft of inspection conclusion.

The Head of inspectorate shall submit the inspection result to the Heads of the inspection unit as the form No. 08/QTTTr in this procedure. The heads of the Inspection unit shall give their opinion and draw up the conclusion of the inspection as the form (No. 06/KTTT enclosed with the Circular No. 156/2013/TT-BTC dated November 02, 2013 by the Ministry of Finance) prior to submission to the Heads of the tax authority.

3.2. Conclusion of inspection, notification of the inspection conclusion and circulation of inspection conclusion.

a) The Heads of the tax authority shall signed the inspection conclusion within 15 (fifteen) working days from the date of receipt of the inspection result and the draft of inspection conclusion, (except for any inspection conclusions needed making by competent agencies).

b) In the time of draft of written inspection conclusion, the Directorate of tax authority may request the Head/member of inspectorate to ask taxpayer for detailed explanation to facilitate the issuance of inspection conclusion.

c) Application for issuance of inspection conclusion:

- Report on the result of inspection by the Inspectorate.

- The draft of the inspection conclusion.

- The Daft of Decision on tax, administrative penalty based on the regulatory compliance of the taxpayer under the form (No. 20/KTTT issued together with this Circular No. 156/2013/TT-BTC dated November 06, 2013 by the Ministry of Finance).

- The Record of Inspection;

- Other relevant explanation (if any).

d) Announcement of the inspection conclusion:

- The Heads of the tax authority shall announce the conclusion of the inspection at the taxpayer's premise with the presence of the legal representative.

In some necessary cases, the Heads of the tax authority may empower the Head of inspectorate to announce of the inspection conclusion as the form No. 09/QTTTr.

- The announcement of the inspection conclusion shall be made in record as the form No. 10/QTTTr and this record must be signed by the Head of the Inspectorate (except for cases of empowering) and the legal representative of the taxpayer.

đ) The inspection conclusion and Decision on tax and administrative penalty shall be sent to the taxpayer and/or the supervisory tax authority (if the inspection is conducted by superior tax authority).

Re-inspection: the Director General of the General Department of Taxation shall send the conclusion of re-inspection to the Inspectorate of the Ministry of Finance. The Director General of Departments of Taxation shall send the conclusion of re-inspection to the Director General of the General Department of Taxation.

e) In case that handling of violations of tax payment is beyond the competence of the Heads of the tax authority, the Heads of the tax authority shall issue an Official Dispatch on requesting competent person to handle with administrative violation of tax payment, within 03 working days from the date of signing the inspection conclusion and Decision on administrative penalty of tax payment.

4. Other items in respect of the execution of inspection.

The transfer of case files to investigation agency (if any).

- If there are any detections of tax evasion discovered during the inspection, the Inspectorate shall compile a Record on suspension of inspection, report to the Heads of the Inspectorate unit in writing and draw up a document request for dossier transfer to regulatory investigation agency to submit the Directorate of tax authority.

- Documents and/or case files transfer shall be made in writing as the form No. 14/QTTTr and work handover form as the form No. 15/QTTTr attached with this procedure.

4.2. Supervision of the execution of inspection and decision on inspection handling.

a) If the taxpayer fails to make requested payments to the State budget as indicated in the inspection conclusion within 90 working days from the deadline for payment, the Inspection unit shall:

- Monthly monitor and urge the execution of the inspection conclusion, handle with violations based on the decision of inspection issued by the Inspectorate (using form No. 16/QTTTr enclosed in this procedure)

 The Head of inspection unit shall assign the Head of the Inspectorate to urge the taxpayer (via telephone) to pay taxes, fines and interest on delinquent tax, etc. to the State Budget on due date as indicated in the inspection conclusion and decision on inspection handling.

- Cooperate with the Department of Tax Declaration to monitor and urge the taxpayer to make payment for tax refund, interest on delinquent tax, and fines to the State budget on due date on the basis of the inspection results under the decision on administrative penalty of taxation.

- Cooperate with the Division of Tax Enforcement to urge the taxpayer to make payment tax refund, interest on delinquent tax and fines to the State budget on due date on the basis of the inspection conclusion if the taxpayer fail to deliver these payments to the State Budget within 90 working days from the maturity date under the decision on administrative penalty of taxation.

- Monthly or irregular report the result and the decision of handling of taxation to the Head of tax authority.

b) If the taxpayer fails to make tax payments to the State budget as indicated in the inspection conclusion within 90 working days from the deadline for payment to the State budget, the Division of Debt Management shall:

- Deploy enforcement methods in accordance with the procedure for debt management to collect outstanding tax, tax refund, interest on delinquent tax and fines, etc, to the State budget.

- Monthly or irregular report the result of enforcement of outstanding tax to the Head of tax authority.

c) Per month:

- At Departments of Taxation: the Inspectorate shall be in charge of aggregating the result of supervision and accelerating activities conducted by the Inspectorate under the Department of Taxation into database of the General Departments of Taxation ( using the form No. 16/QTTTr enclosed in this procedure). This shall be submitted to request the Directorate of Departments of Taxation for approval before reporting the General Departments of Taxation by 05^th of the next month.

- At the General Department of Taxation: the inspectorate shall be in charge of aggregating the result of supervision and accelerating activities conducted by Inspectorates under the General Department of Taxation to report to General Departments of Taxation ( using the form No. 16/QTTTr enclosed in this procedure). Such results shall be aggregated into the overall report of this field (including the General Department of Taxation and Department of Taxation).

The Inspection unit shall compare the collected data of tax and interest on delinquent tax, etc…, which have been already paid to the State Budget by the taxpayer, with the existing data in Division of tax Declaration and Division of Debt Management. After this comparison, The Inspector ion unit shall make a periodic report and send to the superior tax authority.

4.3. Retention of the inspection record.

- Records of the Inspectorate consist of: the Decision on Inspection, Record of Inspection, report and explanation of inspected taxpayer (if any); report on the result of inspection; the inspection conclusion, Decision on handling of taxation and administrative penalty (if any).

The Head of inspectorate shall hand over the record of inspection to the assigned individuals or divisions in accordance with the promulgated regulations on tax inspection.

The work handover form shall be made as the form No. 18/QTTTr and stored with the inspection record.

III. ENTRY OF THE INSPECTION DATE AND TIME OF REPORT

1. DATA ENTRY

- The Heads of Inspection units shall instruct the inspection unit to put entire inspection data into the inspection system (known as TTR system).

- Data entry must satisfy requirements of the inspection progress and criteria and the accuracy of data.

- The Head of Inspectorate shall be responsible for the timeliness, completion and accuracy of the inspection status and entered data in TTR. The Inspectorate shall complete the entry of inspection data into TTR system within 03 working days from the date of the end of inspection.

- Departments of Inspectorate shall examine and accelerate the entry of data of Departments of Taxation and incorporate their progress to report to the General Departments of Taxation as a basis of direction of tax inspection.

2. Reporting

Besides the irregular report if requested by competent agencies, the Heads of Inspection units under tax authorities shall review the inspection results on TTR, make a report on the inspection result and submit it to the Heads of tax authorities to approve before sending to the superior tax authorities. The report shall comply with following contents and requirements:

2.1. Closing time of data entry

Due to the continuity of inspection and transition between two periods, the report shall satisfy the timeliness and continuity of report periods; avoid from the repetitive or missing information due to the inconsistency of closing time of data. Data in the report of this period shall be data at the end of previous period with the accumulation from the beginning of the year. Data in a monthly report is data of the entire month; data in an annual report is a result of the whole year.

Periodic reports

- A monthly report is made for every month in a year.

- Annual reports.

Time for report submission

- For monthly reports:

+ Departments of Taxation shall make, aggregate and submit the monthly report to the General Departments of Taxation before the 05^th of the next month.

- For annual reports:

+Departments of Taxation shall make, aggregate and submit the monthly report to General Departments of Taxation before the 10^th of next year.

2.4. Forms of report: A report shall be sent in hardcopy or softcopy with the contents indicated in the form No. 16/QTTTr and No. 17/QTTTr (report on the result of tax refund) enclosed in this procedure.

Besides data, a report shall include contents as follows: the assessment of inspection; summary of tax violation and frauds in VAT refunds; inspection techniques; effective inspection experiences in specific fields/industries; requests and suggestions to the superior tax authorities.

Development and use of report software: in addition to the official report submitted in hard copy, the Directorate of Inspectorate Division shall make, aggregate and take full use of report on TTR for inspection.

Part III

IMPLEMENTATION

1. The Inspectorate of the General Departments of Taxation shall instruct tax authorities in implementation of this procedure.

2. The Head of Departments of Taxation shall be responsible for organizing and implementing this procedure; conducting regular or surprise examination of the procedure execution; providing rewards or imposing penalties under the regulations.

3. If any issues arising during the execution, Departments of Taxation shall promptly inform the General Departments of Taxation to resolve./.

ANNEX

FORMS ENCLOSED IN THE PROCEDURE FOR TAX INSPECTION
(Issued together with Decision No. 1404/QD-TCT dated July 28 2015 by the Director General of the General Departments of Taxation)