Tax sector exceeds inspection and audit target

	Constantly reforming and facilitating businesses in the field of tax and customs
	Tax sector proposes fines of about VND38.7 trillion through tax inspection
	Reform tax system, ensure a sustainable budget revenue structure

The Tax sector strengthens inspection at the Tax offices. Photo: Thuy Linh.

Conducting about 66,500 inspections and audits

In 2021, the General Department of Taxation has requested tax departments to inspect and audit premises of at least 19.5% of enterprises, aiming to strengthen anti-revenue loss, modernize tax inspection and examination, and improve the qualification of officers who are in charge of inspection and audit.

However, from the end of April to early May 2021, the outbreak of Covid-19 affected some provinces and cities, which had a significant impact on this work.

The country’s top tax agency requested local tax departments to monitor the local situation and follow directions of the Government and competent agencies to decide to conduct tax inspections and examinations.

For businesses affected by the pandemic, local tax office was asked to review and revise the inspection plan.

Motivated by the direction of the General Department of Taxation and great efforts of local tax offices, the tax examination at the businesses’ premise has achieved positive results.

According to statistics, the Tax sector implemented 66,449 inspections and audits, reaching 105% of the plan in 2021 and meeting 78% compared with the previous year. The total tax amount paid to the State budget is estimated at VND7, 616 billion or equal to 74% of the increase in revenue through inspection and examination.

The tax examination at the tax offices has increased in quantity and quality. The sector checked 943,725 financial records, collected VND977 billion, reduced deduction of VND436 billion and reduced loss of VND1,398 billion.

According to the General Department of Taxation, the growth in the total tax amount higher than those in the number of examined records has shown the improvement in the efficiency of the inspection, meeting requirements of the tax administration amid the pandemic.

In 2021, the whole sector inspected and examined 300 enterprises with related party transactions. The tax sector inspected and re-determined the market price for related party transactions and collected VND477 billion of tax arrears, reduced VND2,139 billion and revised up VND1,350 billion of taxable income.

Regarding the thematic inspection in 2021, the General Department of Taxation has directed tax departments to continue to accelerate inspection and examination of enterprises engaged in mining and trading of trade of riverbed sand gravel. As a result, the sector inspected 333 enterprises and collected tax arrears of VND35.55 billion and VND10 billion of fines and late payment interest.

Expediting e-transactions in tax inspection and examination

The public health crisis is forecast to remain in 2022, the Tax sector will continue to strengthen the inspection at the tax office's headquarters under the risk management method to facilitate taxpayers.

The country’s top tax regulator will develop an inspection and audit plan in 2022 for businesses that have grown and are less affected by the pandemic, and those with high tax risk. The tax sector will strictly review and check tax dossiers of taxpayers before performing an inspection at their premises. The sector will focus on examining high risk enterprises and preventing enterprises from abusing the State’s incentive policies to violate the law, and not causing trouble for taxpayers.

One of the key goals for tax inspection and examination in 2022 is to expedite the e-transactions in tax inspection and examination by exchanging information and data via the Tax sector’s portal. The sector will build a plan on inspection and examination to promptly to respond to the Covid-19 pandemic, ensuring safety and compliance with the Government’s regulations on pandemic prevention and control and the actual situation of each locality.

In the foreseeable future, the Tax sector will continue to direct tax authorities to advise local government to ask the Police and relevant agencies to sign coordination agreements to fight against tax evasion, tax fraud and tax crimes. In addition, it will implement the project on "Tax management for e-commerce activities in Vietnam".

The Tax sector will provide solutions in tax administration for e-commerce and digital-based business activities of overseas suppliers without business establishments in Vietnam.

In 2022, the General Department of Taxation will focus on supervising the inspection team in accordance with regulations, strengthening discipline, properly implementing the inspection and examination process, avoiding prolonging the inspection time without reason; building an e-monitoring and inspection system. It will drastically direct tax offices to perform the data entry of monthly inspection and examination results into the Transaction Tax Resources (TTR) to promptly provide data on the inspection results in a regular manner.