CIRCULAR additional amendments to circular No. 128/1998/TT-BTC dated 22/9/1998 of the Ministry of Finance shall guide the implementation of Decree No. 22/CP dated 17/4/1996 of the Government on sanctioning administrative violations in the field of taxation _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the provisions of the tax law, tax law and Ordinance on the revenues of the State budget submission;

After the implementation of Decree No. 22/CP on April 17, 1996 by the Government on sanctioning administrative violations in the field of taxation, to remove difficulties and obstacles in the implementation process, the Finance Ministry revised guide, adding a score of circular No. 128/1998/TT-BTC on September 22, 1998 by the Ministry of Finance (hereinafter referred to as the circular No. 128/ 1998/TT-BTC) as follows: i. replace point 1 of section II of circular No. 128/1998/TT-BTC by new point 1 as follows: 1. The level of sanctions for violations of registration procedures, tax declaration, tax violations, invoice and voucher regimes prove tax calculation and payment for the goods transport on the road.

1.1. first violation warnings; If the 2nd offense, the fines from 20,000 Dong to 200,000; If there are aggravating the fines to 1.000.000 VND for one of the following acts: a. tax registration, tax registration code (including the case of additional registration every time there is a change) with tax authorities too defined period in the current text tutorials made for tax law.

b. the Testimony is not true, not enough of the items prescribed in the tax return.

1.2. A fine from 100,000 copper to copper 1.000.000 for the first violation; If the 2nd violation fines from 2 million to 4 million dong VND, if any 1 can penalty aggravation to 6 million contract, if there are two or more aggravation can impose a fine up to 10 million contract for one of the following acts: a. do not file a tax return to the tax authority within the time limit specified by the current text tutorials made for tax law.

b. transport of goods not accompanied by records, proof of tax calculation, filing taxes, the origin of the goods stipulated for each business object (purchase, book imported declarations, documents, other legal documents).

1.3. A fine from 1.000.000 VND 10 million to contract for the first violation if the 2nd violation fines to 13 million contract, if there are aggravating the penalty to 20 million could contract for acts not filed the tax return and other documents related to tax calculation and payment for the tax agency under the provisions of the law. Aggravation in this case includes the delay, not taken notice of the tax authorities, namely: after the expiration of the filing of the document according to the rules, the tax agency sends the first notification to the tax payers, too 10 days of sending notice that tax payers are still not filed the tax collection agency, send a second notification. If more than 10 days from the date of the second notice that the tax payers still not filed then this behavior are identified as having aggravation.

II. Replace telescopic 2 section II of circular No. 128/1998/TT-BTC by a new point 2 as follows: 2. the acts of perjury, tax evasion.

Perjury, tax evasion is the behavior of tax payers violates the provisions of the law lead to reduce a part or the whole of the tax under the provisions of the law or to improperly benefit from the tax exemption, tax breaks, tax refund.

The criteria to determine the behavior perjury, tax evasion is: + perjury, tax evasion is violation of the law, including the laws on tax and other laws.

+ The subject of acts of perjury, tax evasion is the individual or organization belongs to tax payers.

+ Consequences of violations is to reduce tax or raise tax exemption number, be reduced, was complete.

The time to determine the behavior perjury, tax evasion is the time the violations were discovered, in accordance with the method, the deadline to declare, pay taxes, pay tax according to the provisions of the laws and ordinances of tax and the writing guidelines, specifically the following: + for case law stipulates the mode declaration temporarily, monthly, annual settlement: identified as perjury, tax evasion if violations were discovered after the date of filing of the annual tax.

+ For the case law provides tax declaration 1 times according to the tax agency's notification are identified as perjury, tax evasion if violations are detected after the date to file taxes enough notice of the tax collection agency.

Organization, individual acts of perjury, tax evasion in addition to sufficient amount due to perjury, tax evasion also sanctioned the money according to the number of times the amount of tax evasion under the specified below, but the level of maximum fine not exceeding 100. Bronze: 000.000 2.1. A penalty equal to the amount of tax evaded, if any aggravation (unless already dealt with regarding perjury, tax evasion but also violating) then fined up to 2 times the amount of tax evaded for one of the following acts: a. improper Declaration of taxable object taxable base, according to the regulations of each type of tax including:-false declaration of origin, purpose of use, categories, quantities, specifications, status of goods, services, tax code, tax rates, tax;

-False declarations of objects, items, type of business, activity to income tax exemption for fraud, tax evasion, reduced revenue declarations or statements actual expenses not incurred reduce taxable income;

-No payment or do not declare the again with the tax authorities about goods, services or income tax reduction, exemption was complete, but the actual tax is used for other purposes in an access must pay tax.

b. implementation of the violations in the field of accounting leads to perjury, tax evasion, including:-use the invoices, accounting is not properly regulated by the Finance Ministry or competent authority are not allowed, including the content of economic fraud on invoices, vouchers; using fake documents, bills or invoices and vouchers expiry; use the print order invoice template has not yet been approved by the Ministry of finance;

-The sale of goods and services that are not billed, vouchers (except not billed according to the prescribed regimes), not recorded in the accounting books sales, excluding sales tax declaration.

-Buy, sale invoices not properly regulated and takes advantage of the invoices to the inventory control actual costs incurred not to reduce the corporate income tax or increasing the number of stubs, tax fraud is tax deductible, are complete;

-Loss of the invoice or the loss of accounting but not timely report to the tax authorities and the competent authorities under the provisions of the State and taking advantage of the loss of invoices, vouchers to tax evasion or in collusion with others of tax evasion.

With regard to the violations outlined in the a, b on here if caught before the tax to be paid or to be paid enough tax under the provisions of the law shall not apply to the extent of sanctions according to the number of times the amount of tax evasion which apply the fines prescribed in clause 2 , Article 2 of Decree No. 22/CP dated 17/4/1996.

c. Please break business, reported outages to be tax free, tax reduction, not tax, but the reality is still in business.

d. Access to tax revenue and apply the fines according to the regulations on handling administrative violations in the field of accounting for the following cases if the first violation:-accounting, incorrect Declaration of revenues between the accounting degree falsifying annual taxable income must adjust again when the check tax;


-The account has enough valid vouchers but declared exceeded the maximum control in accordance with the law on enterprise income tax are excluded out of the reasonable costs to determine the taxable income. Example: the cost of advertising, promotional marketing, front desk, transaction costs, foreign, exceeding the maximum control rate;

-Tax expenses declared in the account are not allowed on reasonable costs to determine taxable income specified in the legal texts instructions detailing the implementation of the law on enterprise income tax;

-The expenses of fixed assets depreciation, taken before, backup, standby cost allocation accounting inaccuracies in cost due to the breach of accounting techniques be adapted back when tax inspections;

-Tax filing cases under the fixed method or according to the level of the stocks of tax authorities, to the extent tax detected through inspection.

The violations outlined in VND, if going from the second onwards then sanctioned behavior perjury, tax evasion as instructed in point 2.1.

2.2. A penalty equal to 2 times the amount of tax evaded, if any aggravation (unless already dealt with regarding perjury, tax evasion but also violating) then fined up to three times the amount of tax evaded for the following violations: a. the goods transported does not have adequate records to prove the goods were tax or tax offices were managed according to the rules for each business object.

The above mentioned violations at this point only considered acts of perjury, tax evasion if after the time limit for a maximum of 10 working days from the date the tax agency checking found questionable and allows the object to be violations of the full collection of valid records prove the shipment already filed taxes for goods purchase , sell, swap) or the tax authority management (for goods shipped inventory in the same units) but the offending object still does not produce full valid records.

In case the time limit for the tax authorities allow the offending object, submitted a valid application, the competent tax authority sanctioned the decision to sanction according to the extent referred to in 1.2 weather. b, point 1 of section I of this circular.

Where the Executive aviation handling decisions of tax authorities or too time limit of 7 days (a day) for fresh food, 5 days (five days) for other goods since has decided to handle that owners not to pay tax, the penalty for filing return receipt , tax authorities moved the Bronze level, financial authorities from the district level upwards to form the Council auction of goods in custody to perform coercive taxation.

b. business tax registration, which does not tax declaration to the tax authorities as defined in the legal texts applicable tax (except in the case of registration, the Declaration too the time limit stated in 1.1 and 1.2. a. a, point 1 of section I of this circular).

c. The phony behavior in accounting leads to perjury, tax evasion, including:-falsify accounting, accounting; documented control; establishment of the certificate from the wrong businesses with economic; forged signatures, seals; controlling logging has no proven evidence of accounting; established two ledger system has different record content;

-Perjury metrics and reporting false accounting; incorrect financial reports with accounting or wrong with reality.

2.3. in case the Organization, individuals have the violation referred to in points 2.1, 2.2 on here that the form and the level of sanctions for this behavior have been defined in tax law, tax law and Ordinance on the revenues of the State budget submission will be applied to the form and the level of sanctions that the tax law Ordinances of tax and the law on revenues of State budget submission had prescribed.

2.4. in case of the Organization, the individual is a violation of the law at the same time are regulated in many legal texts are different but the result led to perjury, tax evasion, then in addition to the result sufficient number of tax evasion also sanctioned violation of behavior perjury, tax evasion. Prohibiting the transfer to apply sanctions, lower levels of sanction.

Example: A company forge a Bill to tax evasion (for input tax deduction), the conduct of A company with no aggravation. In this case A company must result in enough tax amount already deducted, and sanctioned behavior perjury, tax evasion by the number calculated on the amount of tax evasion.

Companies A sanctioned administrative violations in the field of accounting behavior falsify accounting according to the instructions in point 3 of section II of circular No. 89/2000/TT-BTC on 28/8/2000 of the Ministry of Finance shall guide the implementation of Decree No. 51/1999/ND-CP of the Government on sanctioning administrative violations in the field of accounting.

2.5. in case of perjury, tax evasion in large numbers or were sentenced to administrative violations regarding perjury, tax evasion but also violating or has other serious violations, the Agency collects tax file for the people's Procuratorate at the same level proposed prejudice criminal liability under the law.

III. Amendments and supplements to some content in point 1 of section III of the circular No. 128/1998/TT-BTC as follows: 1. Remove the weather content 1.1, point 1 of section III of the circular No. 128/1998/IT-BTC on authority sanctioning administrative violations in the field of taxation the tax officers, Chief tax stations stations , the captain of the tax.

2. Remove the paragraph: "the tax team captain communes (communes, wards) is established under Circular No. 64 TC/TCCB on 29/10/1992 of the Ministry of Finance also has the authority sanctioning administrative violations in the field of taxation as the station chief station tax according to the provisions in clause 1 article 7 of Decree 22/CP dated 17/4/1996." in 1.3 , point 1 of section III of the circular No. 128/1998/TT-BTC.

3. Move the 1.2 and 1.3, point 1 of section III of the circular No. 128/1998/TT-BTC into the 1.1 and 1.2, adding new details to the new 1.3 on point 1 of section III of the circular No. 128/1998/TT-BTC as follows: "1.3. The delineation of powers sanctions against administrative violations in the field of accounting leads to perjury, tax evasion is done as follows: the organization or individual has the authority sanctioning administrative violations in the field of accounting or functions to perform the inspection, check if the detection of infringements in the field of accounting leads to perjury tax evasion, such as instructions in section II of this circular, then to transfer records to the local tax authority to handle according to the level of sanctions for acts of perjury, tax evasion. "

IV. Implementation: this circular have effect after 15 days from the date of signing. The other instructions in circular No. 128/1998/TT-BTC dated 22 September 1998 of the Ministry of finance is not contrary to the content of the guide in this circular shall remain enforceable.

In the process if there are obstacles, the proposal reflects on the Finance Ministry to study the amendments and supplements.