Công văn 2017/TCT-CS

OFFICIAL LETTER

ON SETTLEMENT OF PROBLEMS ARISING IN THE HANDLING OF TAX LAW VIOLATIONS

To: The Tax Department of Kon Tum province

In response to Official Letter No. 2026/CT-TTg of October 1, 2007, of the Tax Department of Kon Tum province concerning some problems in the handling of tax law violations, the General Department of Taxation gives the following opinions:

The case in which a taxpayer fails to submit his/her declaration of business income tax self-finalization for 2006 or submits it 90 days past the prescribed deadline for submission must be handled as follows:

* Before the effective date of the Law on Tax Administration, the sanctioning of the tax law violation must comply with the Government’s Decree No. 100/2004/ND-CP of February 25, 2004, on sanctioning of administrative violations in the tax domain, specifically as follows:

- In case the tax declaration dossier is submitted after the prescribed time limit for submission, the sanction will be imposed for violating regulations on procedures for tax registration, tax declaration, tax finalization making and submission specified in Article 8 of Decree No. 100/2004/ND-CP.

- In case of failure to file tax declaration, the sanction will be imposed for act of tax evasion under Article 11 of Decree No. 100/2004/ND-CP.

* As from the effective date of the Law on Tax Administration, the sanctioning of the tax law violation must comply with the Law on Tax Administration, specifically as follows:

- In case of failure to submit the tax declaration dossier, the tax office shall assess the payable tax amount under the Law on Tax Administration and sanction the act of tax evasion or fraud under Article 14 of Decree No. 98/2007/ND-CP If the enterprise shows signs of violation, the tax office shall conduct tax inspection at the enterprise and issue a violation handling decision based on the inspection conclusions.

- In case the tax declaration dossier is submitted 90 days past the expiration of the time limit or the extended time limit for submission of the tax declaration dossier.

Pursuant to Clause 6, Article 14 of Decree No. 98/2007/ND-CP which stipulates:

“An evaded tax amount under Clauses 1, 2, 3, 4 and 5 of this Article is a tax amount payable to the state budget under law which a taxpayer fails to pay through committing any act of tax evasion or fraud specified in Article 108 of the Law on Tax Administration and detected by a competent authority and stated in a tax examination minutes or tax inspection conclusions.

Acts of violation specified in this Article, which are detected within the time limit for submission of tax declaration dossiers or upon the expiration of that time limit but do not decrease the amounts of tax payable or increase the amounts of tax refund or exemption or reduction, are only subject to sanctions prescribed for tax procedure violations.”

+ If tax amounts stated in tax declaration dossiers are accepted by tax offices, sanctions will be imposed for tax payment delay as specified in Article 12 of Decree No. 98/2007/ND-CP.

+ If tax amounts stated in tax declaration dossiers are not accepted by tax offices, sanctions will be imposed for tax evasion or tax fraud as specified in Article 14 of Decree No. 98/2007/ND-CP.

+ If tax offices find out, through exemination, that tax declaration dossiers indicate that there is no payable tax amount and the declaration by enterprises is consistent with their actual business operation, they shall apply the provisions of Clause 6, Article 14 of Decree No. 98/2007/ND-CP to sanction the delayed submission of tax declaration dossiers at the highest fine specified in Article 9 of Decree No. 98/2007/ND-CP.

The General Department of Taxation would like to give the above answer to the Tax Department of Kon Tum province for information. Any problems arising in the course of implementation should be reported to the General Department of Taxation for further guidance.