Application of information technology in risk management

1. The database system of tax operation information is centrally managed at the General Department of Taxation to ensure the information as a basis for risk assessment is fully gathered and updated, including:

a) General information of the taxpayers;

b) Information on tax declaration dossier and grounds for tax calculation;

c) Management of risk dossiers in tax registration, declaration, payment, tax debt, tax refund and tax exemption or reduction, creation, printing, issue, management and use of printed matters of tax;

d) Information about the taxpayer’s violation of tax law;

dd) Information about result of inspection, verification and handling after inspection and verification

e) System of criteria for risk assessment;

g) Operation information products;

h) User’s account in the system;

i) Other relevant information.

2. The tax authorities apply the information technology by the electronic mode based on the issued criteria for risk management; connect the common information system and database of the Tax sector and relevant information systems outside the tax sector to integrate and process information or data in order to:

a) Assess the reality of compliance with tax law from the taxpayers;

b) Assess and rate the risk level to the taxpayers;

c) Warn risks, classify and give out professional requirements to orient and assist the verification and monitoring of contents of tax management for the operations specified in Article 6 of this Circular.

3. The operational information system is connected online with the relevant information systems of the General Department of Taxation and other tax authorities in the country for monitoring, supervision and decision issue on taking measures to monitor, urge, verify and inspect and other necessary operational measures to ensure the compliance with the tax law.

4. Based on the result from the operational information system specified in Clause 2 and 3, Article 9 of this Circular and other relevant information, the tax authorities shall take measures and apply the management forms as prescribed by law.

5. The General Department of Taxation specifies the responsibility of tax units and officers at all levels in development, management, operation, updating and use of information on the operational information system in accordance with each field of tax operation.

Article 10. Coordinated exchange of information with bodies and units of the Ministry of Finance

1. The tax authorities shall coordinate with the following bodies and units to exchange and provide information for risk management in tax operation:

a) General Department of Customs;

b) State Treasury;

c) Inspector of Ministry of Finance;

d) Corporate Finance Department;

dd) Department of Tax Policy;

e) State Securities Commission;

g) Other bodies and units of the Ministry of Finance.

2. Contents of exchanged and provided information:

a) Information about benefits and policies related to the tax management activities;

b) Information about taxpayers, including:

b.1) Information about tax registration of organizations and individuals;

b.2) Information about operational reality of organizations or individuals;

b.3) Reality of tax declaration and payment, tax debt, tax exemption and reduction, creation, printing, issue, management and use of printed matters of tax;

b.4) Information about violation of tax law and regulation on accounting, statistics, corporate finance, violation of economic, civil and criminal law:

– Information about administrative violation in the field of tax and other revenues;

– Information about administrative violation in the field of accounting and statistics;

– Information about tax evasion, tax fraud or violation in the field of accounting resulted in tax evasion and tax fraud;

– Information related to the investigation and prosecution;

b.5) Other information related to the taxpayers;

c) Mode and acts of tax evasion and tax fraud;

d) Other information related to the risk management in tax operation.

3. Form of information exchange:

a) Information exchanged through the computer network (using the unified communications infrastructure of the Ministry of Finance).

b) Information exchanged by documents, fax, paper documents, email or transfer of stored data by other means (for the tax authorities not yet involved in the electronic information system).

c) Information directly exchanged after being recorded and certified in accordance with regulations of the General Director of General Department of Taxation.

4. The tax authorities shall coordinate with the bodies and units of the Ministry of Finance specified in Clause 1, Article 10 of this Circular at the same level to concretize the regulation on coordinate and exchange of information in accordance with functions, duties and management database to exchange and provide information for risk management in tax operation.

The bodies and units of the Ministry of Finance shall coordinate with the tax authorities at the same level to exchange and provide information for risk management in accordance with the contents specified in Clause 2 and 3, Article 10 of this Circular.