Accordingly, although an enterprise only unintentionally declares incorrect tax exemption dossier, it shall be still subject to a fine of 20% of the understated amount of tax payable rather than being exempt from sanction.
In addition, according to point b Clause 1 Article 133 of Circular No. 38/2015/TT-BTC, there is no regulation on exemption from late payment interest in case of imposition of tax due to incorrect declaration of entity exempt from tax.
Accordingly, if VAT incurred by a company is imposed by a customs authority upon the post-clearance inspection but it is not subject to penalties for tax evasion, tax fraud, the already - paid VAT shall be still deducted in full.
According to Article 73 of the Law on enterprises No. 68/2014/QH13, a single-member limited liability company’s owner is liable for the company’s debts and other liabilities up to the company’s charter capital.
At the same time, according to Article 84 of the Civil Code No. 91/2015/QH13, Article 45 of the Law on enterprises No. 68/2014/QH13 and Clause 12 Article 16 of Circular No. 95/2016/TT-BTC, a branch is an affiliate of an enterprise and shall perform part or all of the enterprise’s functions.
When a managing entity deactivates its tax identification number (TIN), the affiliated entities’ TINs shall be also deactivated.
On the basis of the aforesaid grounds, the General Department of Taxation assumes that in case a single-member limited liability Company owes tax and interest on late payment of tax over 90 days, the Company and its affiliates are all imposed measures for enforcement of tax arrears.
- Ordering the invoice printing without signing a printing contract, the fine bracket of VND 2,000,000 – VND 4,000,000 is reduced to VND 500,000 - VND 1,500,000 (Clause 1 Article 1)
- Signing a printing contract without compulsory contents, the fine is reduced from VND 2,000,000 to VND 500,000 (Clause 1 Article 1)
- A seller causes the loss of the sheet of an invoice to be handed to customer, the fine bracket is reduced from VND 10,000,000 – 20,000,000 to VND 4,000,000 - VND 8,000,000 (Clause 4 Article 1)
In addition, this Circular also supplements some cases on which fines shall not be imposed. In particular:
- Losing invoices due to other unexpected circumstances, force majeure events. Under the earlier provisions, fine was only exempt in the case of losing invoices because of natural disasters, conflagration (clause 4, clause 6 Article 1)
- The act of losing the second sheet of an invoice with at least 2 extenuating circumstances (Clause 6 Article 1)
- In the case organizations, individuals themselves detect errors and make other notices/reports as prescribed in order to send to tax agencies before the tax agencies or the authorities issue the decision on tax investigation, tax inspection at the taxpayers' premises (clause 7 Article 1)
However, this Circular also supplements many invoice – related administrative violations on which fines shall be imposed. In particular:
- Ordering the printing of invoices when a tax authority notifies an enterprise in writing of its ineligibility for ordering the invoice printing: a fine of from VND 2,000,000 – VND 4,000,000 shall be imposed (clause 1 Article 1)
- Using invoices for which the notice of invoice issuance has been sent to tax authority but the time for using the invoices has not reached yet (5 days after the notice of invoice issuance has been sent): a fine of from VND 500,000 – VND 1,500,000 shall be imposed (Clause 2 Article 1)
- Failing to post the notice of invoice issuance as prescribed: a fine of from VND 2,000,000 - VND 4,000,000 shall be imposed (Clause 3 Article 1)
This Circular takes effect from December 15th, 2016.
According to the General Department of Taxation’s opinions, the provision of loans for an enterprise at the interest rate of 0% conducted by an enterprise is regarded as the activity of exchange without complying with common transaction values in the market; thus this case must be subject to the tax assessment according to point e Clause 1 Article 37 of the Law on Tax Administration mentioned above
Concurrently, according point b Clause 3 Article 6 of Decree No. 127/2013/ND-CP, the act of “failure to make declaration and follow procedures on schedule when goods are sold domestically; repurposing goods” shall be imposed a fine of from 2,000,000 VND to 5,000,000 VND.
Thus, in the case a company opens a declaration of repurposing imported goods after the prescribed schedule, it shall be imposed a fine of from 2,000,000 VND to 5,000,000 VND other than payable tax amount.
- Cases in which penalties for customs control – related administrative violations are not imposed;
- Penalties for violations against regulations on time limit for completing customs procedure and submitting tax statement;
- Penalties for violations against regulations on customs declaration;
- Penalties for violations against regulations on tax statement;
- Penalties for violations against regulations on declaration of cash in foreign currencies, cash in Vietnamese currency taken along when leaving or entering Vietnam;
- Penalties for tax evasion and tax fraud
- Penalties for violations against regulations on management of bonded warehouses, tax-suspension warehouses and container freight stations;
Accordingly, in comparison with the earlier provisions, this Decree supplements the penalties for violations on management of materials, supplies, machinery and equipment, processed products or domestic exports results in discrepancy between actual stock and values in accounting documents, accounting books or documents about exports/imports. A fine of 20% of the understated amount of tax payable or the overstated amount of tax exempted, reduced, refunded or cancelled shall be imposed