Strengthening inspection at tax offices amid complicated developments of COVID-19 outbreak

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The General Department of Taxation asked to increase inspection at tax offices amid the complicated developments of Covid-19.

Strengthen the application of information technology in checking tax returns

In order to continue implementing the Government's Resolution No. 84/NQ-CP on solutions and tasks to continue solving difficulties for production and business, promoting disbursement of public investment capital and ensuring social safety amid the Covid-19 pandemic, the General Department of Taxation proposed to the Tax Departments of provinces and cities to establish a representative committee to implement Resolution No. 84/NQ-CP to review, adjust and implement the plan under the direction of the Government, the Ministry of Finance and the General Department of Taxation.

For the inspection of tax returns, according to the provisions of the Law on Tax Administration No. 38/2019/QH14, the General Department of Taxation requires theacceleration of the application of information technology in checking tax declaration.

For monthly and quarterly tax returns, 100 percent of tax returns must be checked; applying information technology to assess the risk level.

Tax departments must focus on checking tax returns and finalization of the preceding year (2018, 2019). Apply a set of static criteria and add dynamic criteria to assess the situation of fluctuations in finance, assets, business results and common behaviors in the area to assess the level of risk.

Specifically, for low-risk tax returns, it must be checked and kept as prescribed. The tax inspection and examination section will make a list of dossiers with risks, tosubmit to the head of the tax agency for signing notices, requesting enterprises to explain and supplement information on documents according to regulations. For high-risk tax returns, make a list of taxpayers to examine and supervise to report to the leader of the inspection and examination division, then submitting to the head of the tax agency a plan to perform in-depth analysis, key inspection and supervision at tax offices.

Tax authorities must encourage taxpayers to send notices and receive explanatory information via the Portal of General Department of Taxation byemail and phone.

Perform risk analysis on TPR

The General Department of Taxation also requires that, for the 2020 inspection and examination plan, on the basis of the inspection and examination plan, the tax agency performs risk analysis of taxpayers on the TPR application after updating the latest tax returns (2019) with the risk score when planning the first inspection; compare the total sales of goods and services sold on the value-added tax return of the first six months of 2020 with the same period last year to determine the high, medium andlow risk level and make adjustments to the plan.

For taxpayers that are not directly affected by natural disasters or epidemics under the approved inspection plan, but have proposed not to conduct inspections at tax offices, through in-depth analysis of the latest financial statement data on the results on financial statements, tax returns, taxpayer compliance and other collected information, if there is a lower level of risk when planning the inspection and examination and the growth rate of the enterprise is reduced, the tax authority will consider and submit to the competent authority for adjustment of the inspection and examination plan at taxpayers' offices and switch to tax examination at tax offices according to regulations.

In particular, the General Department of Taxation requires tax departments to increase inspection at tax offices during the pandemic to ensure they do not affect the state budget revenue targets through inspection and examination.