On April 20, 2015, the General Department of Taxation issued Decision 746/QD-TCT on a new tax inspection process, replacing the old process attached to Decision 528/QD-TCT.
Compared to the old regulations, the new process has several notable features, such as:
- According to specific regulations, for documents and records already submitted to the tax authorities, the inspection team is not allowed to request them from the taxpayer but must obtain them from the tax authorities.
- If the taxpayer uses accounting software for accounting, they will be required to provide accounting records stored electronically.
- The decision also introduced several new forms: tax return review forms, and notices regarding supplementary tax declarations for underdeclared amounts.
In addition, taxpayers should pay attention to the following points when undergoing an audit:
Note 1:
From the time of receiving the tax audit decision until before the results are announced, taxpayers can submit a written request to postpone the audit if they have a valid and convincing reason.
Note 2:
Taxpayers still have the right to review their tax returns and file supplementary returns to avoid certain penalties before an audit decision is announced.
Note 3:
During the process of complying with inspection decisions, taxpayers are only responsible and obligated within the limits specified in the decision.
Note 4:
When receiving an inspection report, even in draft form, understand that it is an extremely important document. Therefore, the first thing a business needs to do is check the signature of the inspection team leader at the bottom of each page and at the bottom of the last page.
Note 5:
Taxpayers have the right to reserve their opinion before signing the minutes. At this time, the taxpayer's reserved opinion will be carefully considered by the responsible person. Signing the minutes does not mean that you agree with the opinion recorded by the inspection team, but rather confirms that you have reserved your opinion.
Note 6:
Taxpayers who are issued a tax violation notice have the right to explain their actions directly or in writing to the authority responsible for imposing the tax violation penalty.
a) In case of written explanation: the written explanation must be submitted within no more than 05 days from the date the report is drawn up.
b) Direct explanation: The person who violated the tax regulations must send a written request for a direct explanation to the competent authority within 02 working days from the date the report is drawn up.
► The competent authority must notify the offender in writing of the time and place of the in-person hearing within 05 days.
► The competent authority shall organize the direct hearing and is responsible for presenting the legal basis and facts, evidence related to the administrative violation, the form of punishment, and the remedial measures expected to be applied to the violation committed by the offender. The legal representative of the administrative offender has the right to participate in the hearing and present opinions and evidence to protect their legitimate rights and interests.
► The direct explanation must be recorded in a written report and signed by all relevant parties; this report must be kept in the administrative penalty file for tax violations and one copy must be given to the violator.
Note 7:
Not every administrative decision satisfies taxpayers. In such cases, taxpayers should carefully study the relevant legal regulations and continue to appeal or file a lawsuit if they believe the administrative decision is unsatisfactory in order to protect their legitimate rights and interests.
