Applying risk management mechanism, applying information technology to tax inspection

VCN - Recently, the General Department of Taxation has issued Decision No. 970/QD-TCT on the tax inspection process. Accordingly, strengthening tax inspection in accordance with the Law on Tax Administration on the basis of applying risk management mechanisms and applying information technology to detect, prevent and promptly handle tax violations and prevent tax loss.
Customs pioneers in applying risk management – good experiences for ministries and agencies Customs pioneers in applying risk management – good experiences for ministries and agencies
Guiding and sharing experiences about risk management in making customs finalization reports Guiding and sharing experiences about risk management in making customs finalization reports
Applying risk management mechanism, applying information technology to tax inspection
The newly enacted tax inspection process implements administrative reform in tax inspection. Photo: Dong Thuy/VNA

Applying inspection and testing by electronic method

According to the General Department of Taxation, the new process also aims to improve taxpayers' self-discipline to comply with tax laws in the implementation of tax laws; implementing administrative reform in tax inspection, creating favorable conditions for taxpayers to develop production and business of goods and services.

Director of the Department of Inspection and Examination (General Department of Taxation) Vu Manh Cuong said that the new tax inspection process was issued under Decision No. 970/QD-TCT dated July 14, 2023 to replace the tax inspection process promulgated under Decision No. 746/QD-TCT dated April 20, 2015 and amended and supplemented at Decision No. 1215/QD-TCT dated September 3, 2015. Accordingly, the content of the new tax inspection process is built on the basis of inheriting the main contents specified in the decrees and circulars and changing new orders and procedures towards the application of electronic inspection and examination persuant to the provisions of the Tax Administration Law and its guiding documents; other relevant legal documents; organizational structure of the tax sector and the reality of tax administration.

Updating data and information into software and information technology applications for tax inspection is implemented synchronously and continuously to serve tax inspection. Accordingly, the tax inspection department, tax officials assigned the tax inspection task and relevant departments as assigned, are responsible for timely and fully updating information and data of taxpayers into information technology application software for inspection work. At the same time, the tax inspection department and tax officials tasked with tax inspection use the taxpayer's tax declaration data and the taxpayer's information data that has been updated into the data system of the Tax sector to serve the inspection of tax records sent to the tax office. The head of the agency in charge of tax inspection is responsible for regularly grasping and urging the tax examination department and tax officials assigned to perform tax inspection to strictly perform the above tasks with the purpose of well implementing tax management and inspection according to the risk management mechanism in tax administration.

Checking taxpayers under key supervision cases

This process also stipulates the order and procedures for performing tax inspection by tax authorities and tax officials in the following cases: checking tax records at the tax office's headquarters; Tax inspection at the taxpayer's office. Accordingly, the tax inspection at the taxpayer's office shall be carried out in the following cases: inspection according to the provisions of Point c, Clause 4, Article 71 of Circular No. 80/2021/TT-BTC; examine cases with signs of law violations through tax administration as prescribed at Point d, Clause 1, Article 110 of the Law on Tax Administration and other legal regulations; examination for the following cases: dossiers subject to inspection before tax refund; post-tax refund inspection for dossiers which are eligible for pre-tax refund as prescribed (also known as tax refund inspection); examining the cases selected according to the plan, thema decided by the head of the superior tax authority, the thematic examination arising in the year decided by the head of the tax authority at the same level; inspection at the recommendation of the State Auditor, State Inspectorate, other competent agencies, etc.

In particular, Decision No. 970/QD-TCT specifically stipulates the inspection at the headquarters of the tax authority for taxpayers in the case of key supervision. Accordingly, when inspecting at the headquarters of the tax authority according to the provisions of Article 22 of the Circular No. 31/2021/TT-BTC dated May 17, 2021 of the Minister of Finance, providing for the application of risk management in tax administration, the inspection team collects information, documents and data of taxpayers on the tax information system such as documents and records on tax registration, declaration, payment, and reports of used invoices, financial statements, information collected from third parties, etc, in combination with direct tax administration in the area to perform in-depth analysis for taxpayers on the key monitoring list.

According to the tax inspection process, the basic contents of in-depth analysis for key supervisory taxpayers in the case of inspection at the tax office are carried out as follows: analysis and determination of the level of risk according to key monitoring contents; analysis of indicators on financial statements and tax declarations. On the basis of the Financial Statements exploited on the Financial Statements application or the Financial Statements lookup applications (TPH, DWH or other related applications), the tax official who is tasked with checking Tax assessment and analysis basing on the volatility of the criteria on the financial statements according to the regulations on accounting regime promulgated by the Ministry of Finance. Through analyzing the indicators of fluctuations to determine the level of risk to taxpayers, and at the same time, comparing the indicators on the financial statements with those on the tax declarations of the whole year, the tax finalization declarations to compare and evaluate a number of criteria such as: revenue, cost, profit to detect the level of tax risk.

By Hoai Anh/Phuong Linh

Related News

Bulgaria Announces Merger of Customs and Revenue Agencies

Bulgaria Announces Merger of Customs and Revenue Agencies

The Bulgarian Ministry of Finance has unveiled plans to consolidate the National Revenue Agency and the Customs Agency into a single entity, marking a significant step towards streamlining financial operations in the country.
Urgently revising Decree 123 to create maximum convenience for taxpayers

Urgently revising Decree 123 to create maximum convenience for taxpayers

VCN - Faced with the urgent requirement of drafting a Decree amending and supplementing Decree 123 to soon submit it to competent authorities for approval, the General Department of Taxation is actively reviewing the draft Decree amending and supplementing the Decree. 123/2020/ND-CP (Decree 123) of the Government on invoices and documents to create maximum convenience for taxpayers as well as the general development of the country's economy.
Proactively responding, carbon tax policy creates motivation for green transformation

Proactively responding, carbon tax policy creates motivation for green transformation

VCN - According to experts, the measure of carbon tax on imported goods in Vietnam's major export markets is a short-term challenge but will create more innovation for Vietnam to realize its Zero net emissions target.
The Taxation continues to digitally transform comprehensively

The Taxation continues to digitally transform comprehensively

VCN - In 2023, digital transformation is one of the 10 outstanding highlights of the Taxation. With the motto of taking people and businesses as the center to serve, the Taxation has been implementing many projects and tasks to apply information technology in tax management and comprehensive digital transformation.

Latest News

Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Commission (SSC) continues to improve domestic regulations on the basis of researching international regulations and practices to promote Vietnam's stock market to develop in a sustainable direction, creating a favorable environment to attract international investors and foreign indirect investment capital flows.
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

VCN - The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.
SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.

More News

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

The Vietnam Stock Exchange (VNX) reported revenue of over 1.92 trillion VND (78.26 million USD) in 2023, down nearly 44% compared to the previous year.
Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

Focusing on five tasks so that the securities industry continues to develop in the face of intertwined opportunities, challenges

VCN - Deputy Minister of Finance Nguyen Duc Chi raised five tasks that need to be focused in 2024 so that the securities industry continues to develop in the face of intertwined opportunities and challenges.
Prioritizing the allocation of public investment capital

Prioritizing the allocation of public investment capital

VCN - Public investment in 2024 continues to set a disbursement target of at least 95% of the total of more than VND657,000 billion of assigned public investment capital. Thus the task is to focus on allocating capital quickly and reasonably right from the beginning of the year.
6,144 retail petroleum stores issue invoices after each sale

6,144 retail petroleum stores issue invoices after each sale

VCN - According to the latest statistics of the General Department of Taxation, as of February 1, 2024, the country has 6,144 retail petroleum stores issuing electronic invoices after each sale.
PM Chính instructs action for stock market upgrade

PM Chính instructs action for stock market upgrade

Efforts have been made to attract investment and promote the image of the Vietnamese stock market, with the goal of upgrading it from frontier to emerging status.
Cai Mep – Thi Vai port gets very busy right from the beginning of Tet

Cai Mep – Thi Vai port gets very busy right from the beginning of Tet

VCN - Many mother vessels made landfall at Cai Mep – Thi Vai port (Ba Ria – Vung Tau province) in the early days of Dragon Year 2024 showing positive signs about the recovery of seaport activities.
Public offerings key to promoting corporate bond market: experts

Public offerings key to promoting corporate bond market: experts

To promote the professional corporate bond market, one solution is to focus on widespread public offerings of corporate bonds rather than private placements, said experts.
New policy may have adverse impacts on bancassurance

New policy may have adverse impacts on bancassurance

A new regulation on banning commercial banks from selling insurance together with banking services will negatively affect banks’ bancassurance revenue in the future, some analysts have claimed.
State treasury undertakes comprehensive reforms to boost customer satisfaction

State treasury undertakes comprehensive reforms to boost customer satisfaction

VCN - Embracing the principle of "customer-centric service," the State Treasury of Vietnam is set to further intensify its administrative reform efforts, aiming to significantly enhance customer satisfaction levels in the coming period.
Read More

Your care

Latest Most read
Banks ask central bank to extend June 30 payment deadline

Banks ask central bank to extend June 30 payment deadline

Industry experts said the current challenging economic situation and difficulties faced by businesses severely affect their ability to meet debt obligations. As there are no shortcuts to resolving old bad debts, a significant number of newly classified bad debts, which should be expected on June 30 this year, will put tremendous pressure on the country’s financial sector, as well as businesses.
Efforts to remove obstacles to upgrade the stock market

Efforts to remove obstacles to upgrade the stock market

VCN - According to the sharing of Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), in addition to completing the main criteria of international rating organizations in upgrading the stock market (TTCK), the State Securities Com
The State Treasury implements nine key tasks in 2024

The State Treasury implements nine key tasks in 2024

The deployment of key tasks plan in 2024 (refer to the Plan) of State Treasury was issued to focus resources on completing tasks during the year and following the proposed strategies.
SBV injects large amount of money to support capital for banks

SBV injects large amount of money to support capital for banks

The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.
Vietnam Stock Exchange’s revenue down nearly 44% in 2023

Vietnam Stock Exchange’s revenue down nearly 44% in 2023

The Vietnam Stock Exchange (VNX) reported revenue of over 1.92 trillion VND (78.26 million USD) in 2023, down nearly 44% compared to the previous year.
Mobile Version