Strengthening inspection and tax examination for large enterprises that have not been inspected for many years

	Tax Administration Law 2019: Open policy, improved awareness of taxpayers
	Strengthening discipline of tax inspection
	Collect information to implement new regulations on freezing and remission of import and export tax debts

Taxation Department strives to fulfill the revenue task in 2019 exceeding the estimate by 5 percent. Photo: Thuy Linh

That is the content in Directive No. 01/CT-BTC on strengthening revenue collection, striving to complete budget collection and tax management in 2019 of the Minister of Finance.

Striving to complete the 2019 collection task exceeding the estimate by 5 percent

According to the latest statistics of the General Department of Taxation, the total accumulated state budget revenue in eight months of 2019 managed by the tax authority is estimated at VND 814,186 billion. This revenue is equal to 69.7 percent of the ordinance estimate, up 12.3 percent over the same period in 2018.

The Law on Tax Administration in 2019 was passed the arrangement of organisation and apparatus according to Resolution No. 18-NQ / TW of the Central Executive Committee of the 12th term is implemented at tax departments, contributing part of consolidating the apparatus in the spirit of streamline and efficiency under the policy of the Party and State.

However, the directive also stated that in the last months of the year, tax administration faces a number of difficulties and challenges such as the context of complicated world situation, increasing trade war, rapidly falling oil prices, erratic and unpredictable; disbursement of public investment is slow; natural disasters and consecutive floods have had effects on the domestic economic situation. Besides, revenues in recent months has begun to show signs of slowing; inspection and examination are limited in arrangement of personnel resources; the amount of tax debt that has not been recovered is increasing.

Based on the task of State budget revenue collection in 2019 assigned by the National Assembly, the Ministry of Finance has also assigned the task of taxation to strive to complete the collection task in 2019 exceeding the estimate by 5 percent, all 63 localities completed 100 percent of the estimate.

At the same time, the tax sector conducts tax inspection and examination by risk management at taxpayers' offices, striving to reach at least 19 percent of enterprises in the locality. Debt management and tax debt enforcement ensure that the tax debt to December 31, 2019 does not exceed 5 percent of total budget revenue.

Focus on inspection and examination of large enterprises

To ensure that the tax industry fulfills its tasks and helps the Government take the initiative in managing its revenue and expenditure tasks in 2019, the Minister of Finance requests heads of tax agencies at all levels focus on implementing solutions of managing revenue, exploiting revenue sources, combating revenue loss and speeding up the recovery of outstanding tax amounts, fulfilling the task of State budget collection.

Leaders of the Ministry of Finance require all units in the tax system from the General Department of Taxation to the Department of Taxation, Sub-Departments of Taxation manage tax collection subjects and increase revenue. Regularly assessing the results, implementation progress and solving difficulties and obstacles in the management process to exceed the State budget revenue estimates for 2019 in the assigned area.

At the same time, the entire tax sector needs to continue strictly implementing the instructions of the Ministry of Finance to strengthen debt management and enforce tax debt recovery; take measures to urge tax debt recovery and tax debt enforcement strictly according to regulations; intensify the urge to handle debt, apply debt enforcement measures, disclose tax debt information and coordinate with local authorities to set up interdisciplinary teams to review and collect tax arrears and collect thoroughly debts arising in 2019.

In the directive, the Minister of Finance requests units in the tax system to intensify control of tax inspection and examination in their units by week, month and quarter. Subjects of inspection and control focus on enterprises with high tax risks and large enterprises which have not been inspected for many years; large tax refund enterprises or associated enterprises with high risks of transfer prices.

It is necessary to monitor and update promptly the operation situation of enterprises, especially large enterprises. At the same time, tax authorities at all levels must promote supervision of taxpayers' tax declaration, promptly collect arising taxes, prevent low declaration, do not close to reality or move to the next declaration period affecting the budget revenue and collection.

In addition to the above solutions, the Minister of Finance requests units in the tax system to propose the conclusions of the Government Inspectorate and the State Audit Office. It is also necessary to work with local management agencies in reviewing the collection and payment of land use levies, land rents and water surface rents. There should be timely reports from competent authorities to ensure the full collection of budget.

In the directive, the minister also asked the tax industry to strengthen discipline and compliance with the law on the State budget. Tax administration officials and employees shall have to comply with financial discipline in the performance of official duties without causing troubles to taxpayers.

The Minister asked the Tax Department to continue to organise apparatus and consolidation of tax offices into regional branches to ensure strictness without affecting the assigned tasks and ensure solidarity in the whole unit.