TAX EXAMINATION, INSPECTION AT OFFICES OF TAXPAYERS

TAX EXAMINATION, INSPECTION AT OFFICES OF TAXPAYERS

According to article 110 of the law on tax administration in the year 2019 and point 2 and 3, article 72 of circular 80/2021/TT-BTC.

Annually, The General department of Taxation shall guide the formulation of examination plans and subjects for the entire system of tax offices.

Tax offices at all levels based on guidance of the General department of Taxation, formulate examination plans and subjects to higher tax authorities for consideration and approval, specifically as follows:

Tax Branches => Tax Department => The General Department of Taxation

In addition to annual examination plans and subjects as mentioned above, tax offices at all levels may formulate plans and subjects to be implemented in the year upon requests of heads of tax offices at the same level or as directed by superior tax offices. Plans and subjects shall be formulated according to risk management principles and approved by heads of tax offices at the same level and reported to superior tax offices.

Handling of overlaps in examination activities

- In case there are overlaps in examined subjects of the lower tax offices with tax examination and inspection plans of state inspection agencies, state audit agencies and superior tax offices, plans of the higher level shall prevail;

- In case of overlaps in examined subjects in examination plans of tax offices and other state agencies, heads of tax offices shall coordinate with heads of such state agencies in addressing the overlaps and report to agencies that have approved the plans when necessary.

In short: The tax payers have been examined or inspected according to examined subjects by the tax authority at the same level will not be re-examined for this subject. However, re-inspection shall be carried out when one of the following grounds exists (point 2, article 120, Law on tax administration in the year 2019).

- A serious violation related to order and procedures committed in the course of inspection;

- An error in the application of law upon making of inspection conclusions;

- Inconsistency of inspection conclusions with evidences collected in the course of inspection, or signs of prominent risks based on risk analysis and assessment criteria;

- Intentional falsification of the case or matter dossier or intentional making of an unlawful conclusion by the inspection decision issuer, or head or a member of the inspection team;

- Signs of a serious violation of the inspected entity which have not fully been detected through the inspection.

The statute of limitations for re-inspection is 2 years from the date of signing an inspection decision.