How will tax evasion be punished in Vietnam?

To increase the state budget as well as ensure fairness. Tax evasion is an act of violating the tax policy of the State through the failure of the subject to fulfill or incompletely fulfill the tax payment obligation. So when tax evasion is penalized like? How many years in prison will be imposed as well as what is the administrative penalty? Legal problems will be answered by Lawyer X through the following article:

Legal grounds:

Criminal Code 2015

Circular 166/2013/TT-BTC

What are tax evasion and tax fraud?

Tax evasion is an act of violating the tax policy of the State; through the subject’s failure to fulfill or incompletely fulfill the tax payment obligation. This is dangerous behavior for society; infringing upon the State’s economic management regime.

How is tax evasion punished?

Administrative penalties for tax evasion

Taxpayers have acts of tax evasion; Tax fraud according to the provisions of law shall be penalized according to the number of times calculated on the evaded tax amount, the fraudulent tax amount. Besides, a fraudulent amount is the amount of tax payable to the state budget according to the provisions of law that the taxpayer is detected by a competent authority; and determined in the minutes, inspection, and inspection conclusions. Article 13 of Circular 166/2013/TT-BTC; stipulate the level of sanction for this act with different fine levels; at the same time must fully pay the unpaid or outstanding tax amount to the State, Specifically:

Level 1

For the first violation cases; or there are 2 or more extenuating circumstances, the fine level is equivalent to the amount to be paid.

Level 2

The fine level for tax evasion will now be 1.5 times calculated on the evaded tax amount for taxpayers when there is one of the acts of evasion; tax fraud if the case: first violation; there are aggravating circumstances or a second violation; there is an extenuating circumstance.

Level 3

A fine of 2 times calculated on the evaded tax amount for taxpayers when there is one of the acts of evasion; tax fraud if the case; second violation without extenuating circumstances; or a third offense and there is an extenuating circumstance

Level 4

A fine of 2.5 times calculated on the evaded tax amount for taxpayers; when there is one of the acts of tax evasion, tax fraud if the case; a second violation that contains an aggravating circumstance; or a third violation without extenuating circumstances

Level 5

A fine of 3 times calculated on the amount that should be paid to the taxpayer when there is one of the acts of tax evasion; tax fraud if the case: the second violation has two or more aggravating circumstances or the third violation with aggravating circumstances or the fourth violation onward.

Criminal penalties for tax evasion

So, Cases with sufficient constitutive factors will be penalized for tax evasion as prescribed in Article 200 of the Penal Code No. 01/VBHN – VPQH issued by the Office of the National Assembly on July 10, 2017.

Level 1

Accordingly, evading with an amount of between VND 100,000,000 and under VND 300,000,000; or less than 100,000,000 VND but have been administratively sanctioned for this act; or has been convicted of this crime or one of the offenses specified in articles 188, 189, 190, 191, 192, 193, 194, 195, 196, 202, 250, 251, 253, 254, 304, 305, 306, 309 and 311 of this Code; have not yet been expunged, but continue to commit violations; shall be fined from VND 100,000,000 to VND 500,000,000; or imprisonment from 3 months to 1 year:

– Then, failing to record in the accounting books the revenues related to the determination of payable tax amounts;

– Do not issue invoices when selling goods; or services or write a lower value on the sales invoice than the actual payment value of the goods; Service sold…

Level 2

A fine ranging from VND 500,000,000 to VND 1,500,000,000 will be imposed; or sentenced to between 01 and 03 years of imprisonment if the crime is committed in one of the following circumstances:

– Organizing;

– The amount of tax evasion is from 300,000,000 VND to less than 1,000,000,000 VND

Level 3

Tax evasion with the amount of 1,000,000,000 VND or more; shall be fined from VND 1,500,000,000 to VND 4,500,000,000; or imprisonment from 02 to 07 years.

Besides

There may also be a fine of from VND 20,000,000 to VND 100,000,000; banned from holding certain posts, practicing certain professions, or doing certain jobs for 1 to 5 years; or confiscation of all or part of the property.

Please see more articles:

• Dissolution of enterprises according to the latest Enterprise Law in Vietnam
• What is tax evasion under Vietnamese Law?

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