The term "Tax Settlement" is generally understood as the process by which the tax authorities conduct a review of the accuracy of a company's tax return.

Businesses have the right to self-declare and self-pay taxes, but they must take responsibility for their self-declaration and self-payment. In case of errors, businesses will be penalized depending on the severity of the violation, such as:

• Filing late or omitting information is acceptable, but it does not result in a shortfall in the amount of tax payable.
• Underreporting taxes resulted in a shortfall in tax payments.
• Underreporting taxes due to intentional error, but not to the extent of tax evasion.
• Making false declarations constitutes tax evasion.
• Each offense has a different level of punishment, in order from least serious to serious.

Due to the self-declaration and self-payment nature of tax management, if a business discovers errors before the tax authorities announce a tax audit decision, it is still allowed to submit adjustments and the errors are not considered violations.

Therefore, conducting thorough reviews and preparing accurate financial reports, especially before the tax authorities announce an audit decision, is extremely important in reducing penalty costs and ensuring compliance with the responsibilities of the business and its leaders.