Risk management in operational activities of tax authorities

The tax authorities shall apply the measures and techniques of risk management in the operational activities: Tax registration, declaration, payment; management of tax debt and enforcement of administrative decision on tax; tax refund; tax verification and inspection; creation, printing, issue, management and use of printed materials of tax, including:

1. Application of criteria for risk management;

2. Collection and development of database system related to the taxpayers; application of information technology in risk management;

3. Assessment of compliance with law on tax, assessment and rating of risk level;

4. Analysis of risk and identification of major risks in tax management;

5. Management of risk dossier of the taxpayers to be monitored closely in the tax management at risk of non-compliance with law on tax and tax fraud;

6. Development and management and application of list of taxpayers with risks;

7. Application of operational information system to define the form, level of management, urge, verification and inspection;

8. Measurement and assessment of compliance with tax law in the tax management.

9. Monitoring, urge, verification, inspection and assessment of effect and effectiveness of taking measures to urge, verify and inspect and other operational measures in tax management to the taxpayers.

Article 8. Collection and processing of information for risk management in operational activities of tax authorities

1. The information for risk management in operational activities of tax includes:

a) Information from the tax declaration dossier, customs dossiers; the financial reports, listing reports, taxpayers’ reports;…in accordance with regulations of law on tax and relevant laws;

b) Information on reality of compliance with law on tax in tax registration, declaration, payment; tax debt, exemption and reduction; declaration for tax refund, tax refund; tax verification and inspection; creation, printing, issue, management and use of printed matters of tax; information from the result of verification and inspection; handling of tax debt; information and documents of fines of administrative violation on tax law; tax debt and other measures of the tax authorities of each period;

c) Information from the competent state authorities and other relevant bodies and organizations on investment, import and export of goods and services; registration and reality of labor employment; information on associated transactions and transactions through bank, treasury and other credit institutions; information on violation of customs law, accounting, statistics, corporate finance violation of economic, civil and criminal law;

d) Information collected from information buying or information exchange in the country or from foreign country and official information from tax management authorities and competent authorities in foreign country under the international treaties in which the Socialist Republic of Vietnam is a member, documents signed between Vietnam and relevant countries related to the field of tax and customs for use in tax activities;

e) Other relevant sources of information.

2. The General Department of Taxation shall collect information to develop the “Database system on taxpayers” for risk management, including:

a) Collection of information from the taxpayers:

– Information on business and tax registration;

– Personal information about the founders and enterprise’s legal representative;

– Information on dossier of tax declaration, payment, debt, exemption, reduction or refund; creation, printing, issue, management and use of printed matters of tax;

– Information on associated parties and associated transactions;

– Information on compliance with tax law and other laws.

b) Coordinated information exchange:

– Connecting and managing the information system on taxpayers;

– Coordinating with the bodies and units of the Ministry of Finance and of relevant Ministries and sectors in exchanging and providing information for tax management in accordance with the provisions in Article 10 and 11 of this Circular;

– Coordinating the information exchange with the tax authorities of other relevant countries and territories and bodies, organizations and individuals in foreign countries as specified in Article 12 of this Circular.

– Aggregating and analyzing information in newspapers, radio, television or websites of organizations or individuals and information on other mass media;

– Setting up the hotline through the website of the General Department of Taxation, telephone, email to receive information on taxpayers related to the their tax fraud and other acts of violations of tax laws.

c) Information collection on the basis of operational activities:

– Collecting, verifying information and documents with operational major issues;

– Conducting other necessary operational measures as prescribed by law to collect information related to the taxpayers’ activities;

– Buying information under regulations;

– Receiving information provided by the taxpayers as prescribed by law.

d) Information from the taxpayers’ relevant third party such as business line associations, business partners in the country and abroad.

dd) Information from the petition or letter denouncing tax evasion or tax fraud after the final resolution of the competent authorities and is updated in the data system.

e) Information and data from organizations and individuals legally operating in the field of information provision.

g) Other official sources as prescribed by law (including the information bought with permission as prescribed by law).

3. The General Department of Taxation shall develop and manage the information system and database of tax and apply the following forms to process information for risk management in operational activities of tax authorities:

a) Managing and applying the database system of tax operation information to process information and data and assess risks to meet the tax operation requirements in accordance with the contents specified in Article 9 of this Circular.

b) Using the information in the operational information system and data and information system in and outside the Tax sector and other relevant information sources; combining the professional knowledge and experiences to analyze and assess risks, create and provide the operation information products according to the specific requirements in tax management.