Currently, many businesses lack experience regarding the procedures and processes involved in tax audits before inspections. Even experienced accounting staff often fail to keep up-to-date with the regulations and procedures used by tax officials during inspections.
Through this, Expertis updates businesses on regulations and important notes regarding tax audit procedures and processes.
1. Regulations on the Procedures for Tax Audits
The inspection must be conducted no later than 10 working days from the date of issuance.
When commencing a tax audit, the head of the tax audit team is responsible for announcing the Tax Audit Decision and preparing the Announcement Minutes (Form No. 05/KTTT-TT 156/2013/TT-BTC).
The inspection period shall not exceed 05 actual working days from the date of publication, and any extension shall not exceed 05 actual working days.
2. Taxpayer's obligations
Taxpayers are obligated to provide timely, complete, and accurate information and documents (including soft copies if the taxpayer uses accounting software).
In cases where taxpayers perform accounting on computers using accounting software (meeting the regulations in Circular 103/2005/TT-BTC dated November 24, 2005, of the Ministry of Finance guiding the standards and conditions of accounting software), the inspection team will request the provision of accounting records stored in electronic data readable by common office software, with the same content as the printed version the taxpayer has stored as required, without requiring a paper copy.
3. Force Majeure
During an on-site inspection at the taxpayer's premises, if a force majeure event occurs requiring a temporary suspension of the inspection, the inspection team leader shall report to the head of the inspection department, clearly stating the reason for the suspension and the duration of the suspension, in order to issue a notice of suspension. The suspension period shall not be included in the inspection timeframe.
4. Cases subject to administrative penalties
In cases where the taxpayer fails to comply with a tax audit decision within 03 working days from the date they were required to comply with the decision;
Refusing to delay or evade providing records, documents, invoices, receipts, and accounting books related to tax obligations beyond 06 working hours from the time of receiving a request from the competent authority during an inspection at the taxpayer's premises.
Administrative penalties will be imposed according to regulations (an administrative violation report will be drawn up; if the violator either intentionally evades signing or, for objective reasons, is unable to sign the report, it must be signed by a representative of the local government or by two witnesses).
See more: Tax audit procedures and processes – Part 1
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