Principles to apply the risk management in tax management

1. The tax authorities apply the risk management to encourage and create favorable conditions for the taxpayers to properly comply with regulations of law simultaneously prevent, detect and promptly handle acts of violation of tax law in tax management to the taxpayers.

2. In tax management, the taxpayers whose risk must be assessed to apply the option for tax verification and inspection, classification of tax refund dossier, measures to enforce the administrative decision on tax, classification of case of creation, printing, issue, management and use of printed matters of tax and other necessary operation measures at appropriate level to ensure the compliance with tax law.

3. The assessment of risk and compliance with law of the taxpayers shall be based on the regulations of law, procedures and tax management operation measures and on the criteria for risk management, operation information and information and data on the “Database system on taxpayers” of the General Department of Taxation.

4. The tax authorities shall carry out their verification, inspection, monitoring and control on the basis of assessment and rating of high risk level and apply appropriate measures to the cases of assessment and rating of low risk level.

5. The tax authorities shall fully update information in the database system of tax operation information and the database system on taxpayers on the principle of electronicization and digitalization of relevant documents and information. The operational activities must be done on the system to ensure the management status update regularly and continuously.

Article 5. Order to apply risk management

Application of risk management in tax management is done in the order as follows:

1. The tax authorities shall collect and process information and data by the electronic mode related to the taxpayers; develop, operate, manage, use… the “Database system on taxpayers” of the General Department of Taxation.

2. The General Department of Taxation shall develop and submit the criteria for risk management to meet the tax management requirements in each period (03 years) to the Ministry of Finance; carry out the quarterly review, adjustment and addition to ensure the practical updates.

3. Based on the regulations of law, procedures, tax management operation measures, criteria for risk management, database system on taxpayers and application of database system of tax operation information, the tax authorities shall analyze, define and assess the risk level; assess the taxpayers’ compliance with law; manage the risk dossiers of key subjects in violation of tax law;

4. Based on the result of assessment of risk level and compliance with law of the taxpayers specified in Clause 3, Article 5 of this Circular, the tax authorities shall apply the measures: Management of tax registration; management and verification of tax declaration, payment; tax verification and inspection; classification of tax refund dossier; measures to enforce the administrative decision on tax; classification of subjects creating, printing, issuing, managing and using the printed matters of tax and other necessary operation measures to the taxpayers.

5. The tax authorities shall monitor, update, assess information and give feedback on result of implementation of tax management measures to the taxpayers specified in Clause 4, Article 5 of this Circular; measure the level of compliance with law of the taxpayers.

6. The tax authorities shall manage, store and provide information and data; direct and guide the modification and addition of application of risk management to ensure the effectiveness of tax management.

Article 6. Contents of applied risk management in tax management

The tax authorities shall apply the techniques of risk management specified in Article 7 and 8 of this Circular to:

1. Management of tax registration;

2. Management and verification of tax declaration and payment;

3. Management of tax refund;

4. Identification and selection of taxpayers to perform the tax verification and inspection plan as prescribed by law;

5. Management of tax debt and enforcement of administrative decisions on tax;

6. Classification of taxpayers by application of measures to manage the creation, printing, issue, management and use of printed matters of tax;

7. Collection, analysis of information and identification of prioritized monitoring to the taxpayers having signs of violation of tax law.

8. Provision of information and data and assistance to other operational activities in the tax management.