Penalty for 13 acts of tax evasion in customs sector

On October 19, 2020, the Government issued Decree 128/2020 / ND-CP on the regulations on sanctioning of administrative violations in the field of customs, which stipulates the sanction of tax evasion.

13 tax evasion acts

(1) Using illegal or incorrect documents or documents to declare tax.

(2) Deliberately erasing or correcting documents leading to a lack of tax payable or an increase in exempt, reduced, refunded or non-collected tax amounts.

(3) Wrongly declaring goods codes, tax rates and tax rates for items that have been instructed by the Ministry of Finance and the customs office to code goods, tax rates and tax rates as prescribed

(4) Violations of the provisions of Points b, c, d, Clause 3 of Article 9 but the violating individuals or organizations fail to fully pay the tax payable as prescribed before the time of making the violation records.

(5) Do export procedures but do not export processed products; products manufactured for export, products exported to foreign countries by export processing enterprises;

(6) Making false declarations about exported goods in terms of quantity, type, processed products, exported products; products exported to foreign countries by export processing enterprises; re-exported goods.

(7) No declaration of raw materials and supplies purchased domestically with export tax constituting the processed product for export;

(8) Incorrectly declaring the value of exported raw materials, supplies and components constituting the processed product increases the exempt tax amount for the processed product when imported back into Vietnam.

(9) Using goods not subject to tax, tax exemption, tax exemption consideration, goods subject to tariff quota management for improper purposes without declaring the change of purpose of use to the customs authority.

(10) Incorrectly declaring quantity, name, type, quality, value and origin of goods imported from the non-tariff zone into the inland.

(11) Do not record in accounting books the revenues and expenditures related to the determination of the tax payable.

(12) Selling tax-free goods to the wrong subjects, with the quantity and the conditions prescribed by law.

(13) Cooperating with the shipper to import the goods for tax evasion purpose.

Penalty for tax evasion

Taxpayers that commit the above-said violations but are not examined for penal liability shall be fined as follows:

  • A fine of 01 time of the tax evasion amount in the absence of aggravating circumstances.
  • In case of an aggravating circumstance, each aggravating circumstance shall increase by 0.2 times but not exceed 03 times of the tax evasion amount.

Note, this is the rate applicable to both violating individuals and organizations.

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