In order to enhance taxpayers' compliance, the Ministry of Finance has proposed several measures in the draft regulation on risk management in tax administration. In this draft regulation, the Ministry of Finance stipulates that tax authorities must base their decisions on the results of assessing tax law compliance, the classification of taxpayers' risk levels, and relevant transaction information at the time of the decision to determine the list of taxpayers classified by risk levels during each period.
This will enable the implementation of risk management in tax registration, tax audit at tax authorities' offices, tax refund management, selection of cases for tax inspection and audit at taxpayers' premises, tax debt management, and enforcement of tax administrative decisions, as well as the management of tax stamps, creation, issuance, and use.
Updating the list of taxpayers on the application
The list of high-risk taxpayers will be updated on the risk management application in tax administration. Tax authorities at all levels are responsible for aggregating, updating, and managing information on high-risk taxpayers to facilitate tax administration across the tax industry.
Additionally, the General Department of Taxation will detail the periodic assessment and the preparation of the list of high-risk taxpayers to identify focal points in tax administration for each period.
If there is any suspicion or evidence of tax law violations, the head of the tax authority may decide to change the form, scope of inspection, or other tax administration measures within their jurisdiction, and they will be responsible for their decisions.
In the draft regulation, the Ministry of Finance also outlines measures to improve taxpayers' compliance with tax laws. Accordingly, based on the results of tax law compliance assessments, tax authorities will analyze the nature of each level of tax law compliance behavior and scale, develop plans to improve compliance with tax laws, and apply appropriate measures for each compliance issue.
Specifically, for cases of high compliance, taxpayers will be recognized, rewarded, and commended for their tax law compliance. For cases with average or low compliance, tax authorities will collaborate with relevant agencies, organizations, and tax agents to implement support measures for taxpayers in completing tax procedures. This includes organizing contact programs with taxpayers, dialogues, workshops, and training to help taxpayers fulfill their tax obligations correctly and in a timely manner.
Simplifying administrative procedures
The Ministry of Finance will study policy amendments to simplify administrative procedures and implement support measures, including the use of information technology, to make tax declaration and payment more convenient, time-saving, and cost-effective for taxpayers.
In cases of non-compliance, the tax authority will carry out focused monitoring and supervision of the taxpayer.
Regarding non-compliance cases, tax authorities will conduct focused monitoring and supervision of high-risk taxpayers. High-risk taxpayers are those who meet criteria such as conducting suspicious bank transactions as defined by anti-money laundering laws related to tax evasion, tax fraud, having criminal proceedings related to tax, invoices, documents, having a high tax risk as a focal point, or not complying with tax laws and failing to provide complete information or provide information but not within the time limit specified in the written notice of the tax authority.
Tax authorities at all levels will be responsible for monitoring, supervising, and applying appropriate tax administration measures for each case. In particular, the General Department of Taxation will specify the collection and analysis of information, identification of focal points for supervision, and appropriate supervision measures in accordance with the law for each period.