If violators do not fully pay taxes, they will be fined

Customs officers of Huu Nghi Customs Branch (Lang Son) guide procedures for enterprises Photo: Hong Nu

Article 13 of Decree 45 stipulates that if individuals and organizations do not declare or make false declarations on the name, category, quantity, weight, quality, valuation, code, tax rate, origin of imported and exported goods which are detected by Customs during inspection and post-clearance audit, and the violators do not voluntarily pay taxes or fully pay taxes in accordance with the provisions before Customs issue the violation record, they will be fined on the for tax evasion and tax fraud.

Therein, tax evasion and tax fraud including: use of illegal or false documents with practical transaction to declare; arbitrarily erased or retrieve documents that leads to understatement of tax payable or overstatement of tax exempted, reduced or refunded; false declaration on the code, tax rate of commodities which were guided by the Customs.

The individuals and organizations who do not declare or make false declarations on the name, category, quantity, weight, quality, valuation, code, tax rate, origin of imported and exported goods which are detected by the Customs during inspection and post-clearance audit but the violators do not voluntarily pay taxes in accordance with the provisions before the violation record is issued by the Customs; implement the export procedures but not export the processed products, export manufacturing products; exported products of the export processing enterprises; overstatement compare to actual exported goods on the category, quantity, weight of the processed products; exported manufacturing products; exported products of the export processing enterprises, the re-exported goods which had the tax fraud of 100 million vnd or more that does not constitute a criminal offence.

Exporting processed products, export manufacturing or the exports of the export processing enterprises that are not manufactured from the imported material; importing products processed aboard that are not made of the exported materials; re-purposing tax-free goods, goods eligible for tax exemption, tax reduction, or tax refund without notifying the Customs authority as prescribed; not declare or make false declaration on the name, category, quantity, weight, quality, valuation, code, tax rate, origin of goods imported from a free trade zone into the domestic market; Failure to record the revenue and expenditures related to the determination of tax payable; selling tax exemption goods to ineligible people; failure to declare or deliberately declare incorrect name, category, quantity, weight, quality, valuation, tax rate, origin of imported and exported goods to evade tax or commit tax fraud.

In order to specifically guide the provision in Decree 45, the Ministry of Finance issued Circular 155/2016/TT-BTC for the management authorities as well as the enterprises to understand when it will be applied in practice.

In Article 12 of Circular 155/2016/TT-BTC there is guidance on the penalty for tax evasion and tax fraud regulated in Article 13 of Decree 45.

Accordingly, the documents which are regulated in Article 13 include: the documents that need to be submitted and presented Customs during implementation of Customs procedures and post-clearance as the basis to identify the tax payable.

The penalties will be applied with the acts of false declaration on the code and tax rates are stipulated in Point b, Clause 1, Article 13 of the Decree in the case of where violators were guided by Customs on the code and tax rate of the goods which had the same name, code, tax rate with violated goods in the following form; The Customs authority has announced the analysis and classification results or the documents which identified the code, tax rate; the Customs Authority has identified the code, tax rate of goods and issued the decisions of imposing tax.

However, the other acts of false declaration on the code and tax rate will be penalised as per regulation in Article 8 of Decree 45.

Besides, the acts of not declaring or making false declaration the name, category, quantity, weight, quality, valuation, code, tax rate, origin of imported and exported goods which are detected by the Customs after the goods are cleared and if the violators do not voluntarily pay taxes or fully pay taxes in accordance with the provisions before Customs issues the violation records they will be penalised as per regulations in the Point c, Clause 1 Article 13 of Decree 45.

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Especially, violations which are related to exported goods are: processed products, export manufacturing products, exported products of the export processing enterprises: The case of implementing export procedures but not exporting will be penalised as per provision in Point d, Clause 13 of Decree 45. This regulation does not apply where the declaration is not valid as prescribed in Clause 2, Article 25 of the Customs Law 2014.

The acts are mentioned in Point 1, Clause 1, Article 13 of Decree 45 also are applied when Customs has sufficient basis for determining the taxpayer who knows the real export and import goods without declaration or false declaration for tax evasion and tax fraud.

Therefore, the basis for determining tax varied depending on the violations as per regulations in Article 8, Article 13 of Decree 45 are: The tax payments which are declared by the taxpayer and the tax payable as per regulation based on the decisions of imposing tax of the competent person or the tax payable as per regulation.