Taxpayers are obliged to pay taxes within the prescribed time limit. Past the deadline for paying tax, 90 days will be handled according to the penalties for tax evasion and tax fraud in accordance with law.
The acts of tax evasion of companies, businesses like? How much tax evasion will be imprisoned? The fines for tax evasion and frauds of businesses?
Taxpayers are obliged to pay taxes within the prescribed time limit. Past the deadline for paying tax, 90 days will be handled according to the penalties for tax evasion and tax fraud in accordance with law.
The acts of tax evasion of companies, businesses like? How much tax evasion will be imprisoned? The fines for tax evasion and frauds of businesses?
Taxpayers are obliged to pay taxes within the prescribed time limit. Past the deadline for paying tax 90 days, the taxpayers will be fined for tax evasion and frauds in accordance with the law.
The acts of tax evasion of companies, businesses like? How much tax evasion will be imprisoned? The fines for tax evasion and frauds of businesses?
Sanctioning administrative violations
According to Article 13 of Circular 166/2013 / TT-BTC, people who commit acts of tax evasion or tax fraud shall be sanctioned according to the number of times calculated on the evaded tax amount or fraudulent tax amount as follows:
Level 1: A fine of 01 times calculated on the evaded tax or fraudulent tax
According to Clause 1, Article 13 of Circular 166/2013 / TT-BTC level 1 will apply to the following two cases:
Case 1: The taxpayer violates for the first time (except for cases of sanction for acts of false declaration leading to tax deficiency);
Case 2: The taxpayer commits a second violation and has two or more extenuating circumstances
A taxpayer in 02 cases above when one of the following violations is sanctioned, specifically:
1. Failing to submit tax registration dossiers; do not submit tax return or file a tax return after 90 days from the deadline for submitting the tax return as prescribed or from the deadline for the tax filing extension (except 02 cases According to Clause 6, Article 9 and Clause 9, Article 13 of Circular 166/2013 / TT-BTC).
2. Illegally using invoices and documents; illegal use of invoices and documents; Invoices which are not valid for tax declaration reduce the payable tax amount or increase the refundable tax amount or exempted or reduced tax amount.
3. Making procedures and dossiers for destruction of supplies and goods or reducing the quantity and value of supplies and goods not in reality, thus reducing the payable tax amounts or increasing the refundable, exempted or reduced tax amounts.
4. Making false invoices on the quantity and value of sold goods and services as a basis for lower tax declaration and payment than reality.
5. Not recording in accounting books revenues related to the determination of payable tax amounts; failing to make declarations, making false and untruthful declarations, thus reducing payable tax amounts or increasing refundable, exempted or reduced tax amounts.
6. Do not issue invoices when selling goods or services or write the value on the sale invoices lower than the actual payment value of goods and services sold and discovered after the deadline for submitting tax declaration dossiers of the tax period.
7. Using goods exempted from tax or considered for tax exemption (including non-taxable purposes) not in accordance with the prescribed purposes but failing to declare the change of use purpose or tax declaration with the tax agencies.
8. Modifying and erasing accounting vouchers and accounting books, reducing payable tax amounts or increasing refundable tax amounts, exempted or reduced tax amounts.
9. Canceling accounting vouchers and accounting books reducing the payable tax amounts or increasing the refundable tax amounts, exempted or reduced tax amounts.
10. Using illegal invoices, vouchers and documents in other cases to incorrectly determine payable tax amounts and refundable tax amounts; incorrect declaration of tax bases for evaded tax or fraudulent tax amounts.
11. Taxpayers are in the process of applying for temporary cessation of business but actually doing business.
12. Goods transported on the road without legal invoices and documents.
Level 2: A fine of 1.5 times the evaded tax
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- First offense, aggravating circumstances or
- Second violation, there is an extenuating circumstance.
Level 3: A fine of 02 times calculated on the evaded tax
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- Second violation without extenuating circumstances or
- The third violation and there is a mitigating circumstance.
Level 4. A fine of 2.5 times calculated on the evaded tax
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- The second offense has an aggravating circumstance or
- A third violation without extenuating circumstances.
Level 5. A fine of 3 times calculated on the evaded tax amount
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- The second violation has two or more aggravating circumstances or
- The third violation has aggravating circumstances or
- Violating from the fourth time on.
Note:
- Apart from the above fines, persons who commit acts of tax evasion or tax fraud shall have to fully pay the evaded or fraudulent tax amounts into the State budget.
May not handle acts of tax evasion or tax fraud
- Same acts as acts of tax evasion or tax fraud but may be handled with a smaller level (not regarded as acts of tax evasion or tax fraud), specifically:
According to Clause 7, Article 13 of Circular 166/2013 / TT-BTC, violations specified at Points b, c, d, dd, e, g, h, i, k, Clause 1, Article 13 (acts 2, 3 , 4, 5, 6, 7, 8, 9 and 10 at level 1) found within the time limit for filing tax returns of the tax period or discovered after the deadline for submitting tax returns, but not reducing payable or non-refundable tax amounts, which do not increase the exempted or reduced tax amounts and are not in the case of being sanctioned for acts of tax evasion:
+
Taxpayers are obliged to pay taxes within the prescribed time limit. Past the deadline for paying tax 90 days, the taxpayers will be fined for tax evasion and frauds in accordance with the law.
The acts of tax evasion of companies, businesses like? How much tax evasion will be imprisoned? The fines for tax evasion and frauds of businesses?
Sanctioning administrative violations
According to Article 13 of Circular 166/2013 / TT-BTC, people who commit acts of tax evasion or tax fraud shall be sanctioned according to the number of times calculated on the evaded tax amount or fraudulent tax amount as follows:
Level 1: A fine of 01 times calculated on the evaded tax or fraudulent tax
According to Clause 1, Article 13 of Circular 166/2013 / TT-BTC level 1 will apply to the following two cases:
Case 1: The taxpayer violates for the first time (except for cases of sanction for acts of false declaration leading to tax deficiency);
Case 2: The taxpayer commits a second violation and has two or more extenuating circumstances
A taxpayer in 02 cases above when one of the following violations is sanctioned, specifically:
1. Failing to submit tax registration dossiers; do not submit tax return or file a tax return after 90 days from the deadline for submitting the tax return as prescribed or from the deadline for the tax filing extension (except 02 cases According to Clause 6, Article 9 and Clause 9, Article 13 of Circular 166/2013 / TT-BTC).
2. Illegally using invoices and documents; illegal use of invoices and documents; Invoices which are not valid for tax declaration reduce the payable tax amount or increase the refundable tax amount or exempted or reduced tax amount.
3. Making procedures and dossiers for destruction of supplies and goods or reducing the quantity and value of supplies and goods not in reality, thus reducing the payable tax amounts or increasing the refundable, exempted or reduced tax amounts.
4. Making false invoices on the quantity and value of sold goods and services as a basis for lower tax declaration and payment than reality.
5. Not recording in accounting books revenues related to the determination of payable tax amounts; failing to make declarations, making false and untruthful declarations, thus reducing payable tax amounts or increasing refundable, exempted or reduced tax amounts.
6. Do not issue invoices when selling goods or services or write the value on the sale invoices lower than the actual payment value of goods and services sold and discovered after the deadline for submitting tax declaration dossiers of the tax period.
7. Using goods exempted from tax or considered for tax exemption (including non-taxable purposes) not in accordance with the prescribed purposes but failing to declare the change of use purpose or tax declaration with the tax agencies.
8. Modifying and erasing accounting vouchers and accounting books, reducing payable tax amounts or increasing refundable tax amounts, exempted or reduced tax amounts.
9. Canceling accounting vouchers and accounting books reducing the payable tax amounts or increasing the refundable tax amounts, exempted or reduced tax amounts.
10. Using illegal invoices, vouchers and documents in other cases to incorrectly determine payable tax amounts and refundable tax amounts; incorrect declaration of tax bases for evaded tax or fraudulent tax amounts.
11. Taxpayers are in the process of applying for temporary cessation of business but actually doing business.
12. Goods transported on the road without legal invoices and documents.
Level 2: A fine of 1.5 times the evaded tax
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- First offense, aggravating circumstances or
- Second violation, there is an extenuating circumstance.
Level 3: A fine of 02 times calculated on the evaded tax
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- Second violation without extenuating circumstances or
- The third violation and there is a mitigating circumstance.
Level 4. A fine of 2.5 times calculated on the evaded tax
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- The second offense has an aggravating circumstance or
- A third violation without extenuating circumstances.
Level 5. A fine of 3 times calculated on the evaded tax amount
Taxpayers when having one of 12 acts of tax evasion or tax fraud in the following cases:
- The second violation has two or more aggravating circumstances or
- The third violation has aggravating circumstances or
- Violating from the fourth time on.
Note:
- Apart from the above fines, persons who commit acts of tax evasion or tax fraud shall have to fully pay the evaded or fraudulent tax amounts into the State budget.
May not handle acts of tax evasion or tax fraud
- Same acts as acts of tax evasion or tax fraud but may be handled with a smaller level (not regarded as acts of tax evasion or tax fraud), specifically:
According to Clause 7, Article 13 of Circular 166/2013 / TT-BTC, violations specified at Points b, c, d, dd, e, g, h, i, k, Clause 1, Article 13 (acts 2, 3 , 4, 5, 6, 7, 8, 9 and 10 at level 1) found within the time limit for filing tax returns of the tax period or discovered after the deadline for submitting tax returns, but not reducing payable or non-refundable tax amounts, which do not increase the exempted or reduced tax amounts and are not in the case of being sanctioned for acts of tax evasion:
+Being sanctioned for violations of tax procedures with a fine of VND 2.1 million (not exceeding VND 03 million if having aggravating circumstances) or
+ Sanctioning administrative violations in the field of accounting.
- In case the taxpayer is eligible for tax exemption or tax refund under the provisions of law, making incorrect declarations on the basis of determining the exempted or refunded tax amount but without causing damage to the tax amount of the bank. State books shall not be sanctioned for acts of tax evasion but shall be sanctioned for violations of tax procedures with the highest fine not exceeding VND 3 million.
- If the taxpayer submits a tax declaration after 90 days from the deadline for submitting the tax declaration, but voluntarily submits the full amount of tax payable to the state budget before the tax authority Making records of administrative violations regarding acts of delayed submission of tax declaration dossiers:
+ Penalty for late submission of tax declaration with a fine of VND 3.5 million (the lowest is VND 02 million when there are extenuating circumstances - the highest not exceeding VND 04 million if there are aggravating circumstances) .
- In case a taxpayer has submitted a tax declaration but made a false declaration or tax fraud resulting in a lack of payable tax amount, fraud or tax evasion, apart from being sanctioned for tax procedures, he / she will also be sanctioned for declaration owe tax or evade taxes.
- In case the taxpayer who pays tax by the declaration method and is within the period of enjoying enterprise income tax incentives (CIT) is found to commit violations such as making false declarations, thus increasing the expenses to increase losses, to reduce interest; reduction of expenses for increasing interests and incorrect determination of conditions for enjoying CIT exemption:
+ If the violation is checked and discovered right away during the time of being entitled to CIT exemption, it will not impose penalties for tax evasion but will impose penalties for violations against tax procedures or administrative violations in the field of accountant;
+ If the violation has not yet been detected, but the individual or organization does not adjust the consequences of reducing the CIT amount of the subsequent year after the expiry of the exemption period, it will be sanctioned for tax evasion.
Criminal handling of tax evasion
According to Article 200 of the 2015 Penal Code on Tax evasion, the following 9 acts of tax evasion will be examined for penal liability:
1 / Violation of tax dossier:
+ Do not file for tax registration
+ Do not file a tax return
+ Submitting tax returns on time according to the provisions of law
2 / Do not record in the accounting books revenues related to the determination of payable tax amounts
3 / About sales invoices:
+ Do not issue invoices when selling goods and services
+ Write the value on the sales invoice lower than the actual payment value of sold goods and services
4. Illegal invoices and documents are used when accounting goods and input materials in activities generating tax obligations for the following purposes:
+ Reducing payable tax amount
+ Increase the amount of tax exempted, reduced, deducted or refunded
5. Using other illegal documents to determine payable tax amounts and refundable tax amounts
6 / Falsely declaring exports and imports, failing to make additional declarations of tax declaration when goods are granted customs clearance
7. Deliberately failing to make declarations or making incorrect declarations of taxes on export and import goods
8 / Collaborating with the shipper to import the goods
9. Use of goods not subject to tax, exempt from tax, consider tax exemption for improper purposes without declaring the change of use purpose with tax administration agencies
The highest imprisonment penalty for individuals who commit tax evasion can be up to 7 years in prison. In addition, the highest possible fine of VND 4,500,000,000.
For legal entities
For legal entities, if they commit the crime of tax evasion, they may be subject to a maximum fine of VND 10,000,000,000.
In addition, legal entities may also be suspended from operation permanently if such acts of tax evasion:
- Causing damage or potentially causing real damage to the lives of many people,
- Causing environmental incidents
- Causing adverse impacts on security, social order and safety and inability to overcome the consequences caused
If you have any questions, please contact Tran Hang Notary Office / Dai Viet Limited Law Firm for specific answers.
DAI VIET LAW CO., LTD-
TRAN HUNG NOTARY OFFICE
Address: No. 28 Lieu Giai Street - Ba Dinh - Hanoi
Tel: (04) 37478888 Fax: (04) 37473966
Hot-line: 0933.668.166
Email: info@luatdaiviet.vn
Website: www.luatdaiviet.vn
