BP Holdings Tax Management
- Tax obligations often significantly burden businesses operating in Vietnam.
To maximize profit, companies often seek out ways to avoid mandatory tax
payments. Vietnamese law enforcement is beginning to vigorously monitor and
prosecute acts of tax evasion or tax fraud.
Acts of Tax Evasion or Tax
Fraud
The
following acts are considered tax evasion:
1. Failure to file for tax
registration; failure to file a tax declaration; filing a tax declaration more
than 90 days after the filing deadline or the filing extension deadline;
2. Failure to properly
record any revenue included in the taxable income calculation;
3. Failure to issue
invoices upon selling goods or services, or recording lower values than the
actually paid values of goods or services;
4. Using unlawful invoices
or vouchers for accounting costs of
goods or input materials in operations that give rise to tax liability, with the intend to reduce payable tax amount; increase the
exempted or reduced tax amount or
increase the creditable or refundable tax amount;
5. Using other unlawful
vouchers or documents to incorrectly calculate payable tax amount or refundable
tax amount;
6. Failure to file
additional declarations where previous declarations are inconsistent with the
actual exported or imported goods within sixty days after the customs
declaration is registered;
7. Intentionally failing to
declare or making incorrect declarations of customs duties;
8. Colluding with goods
consignors to evade duties on imported goods;
9. Using duty-free goods
for improper purposes without declaring duty.
Once
detected by the Vietnam Government, the enterprise evading tax will face tax
arrears and become disqualified for tax incentives.
If
a corporation committing acts of tax evasion shows any criminal signs, that
corporation and its legal representative are subject to the following
punishments:
1. Offenders shall be
imposed a fine of between 1 and 5 times the evaded tax amount or be subject to
non-custodial reform for up to 2 years if:
• evading tax amounts of between 100 million
and under 300 million VND or ;
• evading tax amounts of under 100 million
VND but have been administratively sanctioned for acts of tax evasion or;
• having been sentenced for this crime or;
• having been sentenced for one of the crimes
specified in Articles 153 through 160, 164, 193 through 196, 230, 232, 233, 236
and 238 of the Criminal Code, have not yet had such criminal record cleared but
commit recidivism.
2. Offenders shall be subject to a fine of
between 1 and 5 times the evaded tax amount or subject to a prison term of
between 6 months and 3 years if:
• evading tax in the amount of between 300
million VND and under 600 million VND
or;
• committing recidivism.
3. Offenders shall be sentenced to between 2
and 7 years if:
• evading a tax amount of 600 million VND or
higher, or
• evading a tax amount of between 300 million
VND and less than 600 million dong and concurrently conduct one of the
following acts: offering bribes; resisting or inflicting injury on persons in
the performance of their official duties; destroying property of tax
administration agencies, tax administration civil servants and other state
agencies with responsibilities in tax administration execution provided that
such act does not constitute a crime. In case where such act constitutes a
crime, apart from tax evasion, the offender is also prosecuted for criminal
liabilities on corresponding crime.
4. Aside from the above mentioned punishments,
offenders may also be imposed a fine of between 1 and 3 times the evaded tax
amount.
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