Công văn 937/TCT/PCCS

OFFICIAL LETTER

ON THE APPLICATION OF THE STATUTE OF LIMITATIONS FOR ADMINISTRATIVELY SANCTIONING ACTS OF LOSING INVOICES

To: The Tax Department of Ho Chi Minh city

In response to Official Letter No. 1749/CT-TTr1 of February 23, 2005, of the Tax Department of Ho Chi Minh city, on the application of the statute of limitations to administrative sanctions against the loss of invoices, the General Department of Taxation gives the following opinion:

1. - Clause 3, Article 10 of the Ordinance on Handling of Administrative Violations states that: "If, within the time limit set in Clauses 1 and 2 of this Article, individuals or organizations commit new administrative violations in the same domain in which they previously committed violations or intentionally shirk or obstruct the sanctioning, the statute of limitations specified in Clauses 1 and 2 of this Article shall not apply; the statute of limitations for administrative sanctions shall be re-counted from the time where new administrative violations are committed or the time of termination of shirking or obstructing the sanctioning."

- Point c, Clause 2, Article 11 of the Government's Decree No. 89/2002/ND-CP of November 7, 2002, on the printing, issuance, use and management of invoices, states that: "The loss of invoices must be immediately reported in writing to agencies which supply invoices or with which the use of invoices is registered."

According to the above-said provisions, where enterprises have lost invoices but failed to promptly report thereon to tax offices, the tax offices, when conducting inspection and detecting that the enterprises have lost invoices, shall impose administrative sanctions against the loss of invoices. The prescription for administrative sanction shall not apply where enterprises have shirked being sanctioned . Where enterprises have lost large quantities of invoices but failed to declare or report thereon, suspending the use of invoices would be called for application.

2. The Taxation Department of Ho Chi Minh city is requested to reinforce the examination of the reporting on the use and settlement of invoices according to regulations so as to end up the fact that tax offices did not know about enterprises' bad management of invoices , resulting in a continuation in selling invoices to enpterprises that have lost invoices for two years. The Tax Department of Ho Chi Minh city is requested to review its management to find out the causes of the fact.

The General Department of Taxation hereby notifies the Tax Department of Ho Chi Minh city as instruction for compliance.