March 27, 2019 07:19

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Draft revised Law on Tax Administration: overcome shortcoming in tax administration

10:21 | 16/03/2019

VCN - After a long time of thorough preparation, the draft revised Law on Tax Administration has perfected the guidelines and policies to overcome the shortcomings of the current Law. Standing Member of the National Assembly's Finance and Budget Committee  Tran Quang Chieu (photo) had a talk with Customs Newspaper around the content of the draft Law.

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draft revised law on tax administration overcome shortcoming in tax administration

Up to now, the revised Law on Tax Administration has been relatively finalized on the basis of receiving comments from the National Assembly’s Standing Committee, delegates and relevant agencies. What is your assessment on the quality of the draft?

It can be said that, compared to the current Law, the draft Law has revised many contents in compliance with the new requirements on tax administration. In particular, there are provisions on amending and supplementing rights of taxpayers; responsibilities of tax administration agencies, ministries and branches related to tax administration; applying information technology to tax administration; supplementations to regulations on anti-transfer pricing and so on.

One of the notable points of the draft Law is that taxpayers are allowed to self-declare, self-calculate, self-pay, self-finalize and be responsible for the payable tax. At the same time, the tax administration agency shall inspect to determine the payable tax amount according to regulations, regardless of the size of the enterprise. In case of dissolution or bankruptcy of enterprises, taxpayers shall have to implement tax settlement and send it to the tax agency for confirmation.

The implementation of risk management mechanism in tax administration has contributed to improving the responsibility and sense of taxpayers, reducing burdens for the tax administration agency and strengthening post-inspection. This is the general trend of many countries in tax administration today.

E-commerce transactions are "booming" in Vietnam because information technology is being applied extensively and widely in social life, requiring the tax agency to change its administration methods to avoid tax losses. So, do the provisions in the draft revised Law on Tax Administration cover all this in the tax field, Sir?

In my opinion, the legalization of management of e-commerce transactions is new and progressive and in line with the integration trend that many countries in the world are implementing. In fact, the Tax and Customs sectors have been implementing electronic tax declaration, tax payment and tax refund. Electronic transactions have initially achieved very positive results. Provisions on e-commerce in the draft Law have created favorable conditions for taxpayers and also helped the tax administration agency to manage more effectively.

Presently, our technology infrastructure and human resources are not really synchronized. In addition, due to the development conditions of each region, especially in remote areas and mountainous areas, electronic transactions have not been deployed on a large scale immediately, but it is not so that we have not considered this issue.

In order to ensure the feasibility, the draft Law provides for the Government to specify this content. At the same time, through receiving opinions of delegates, experts, affected subjects, verification agencies and drafting agencies have supplemented a provision on the effective time for electronic invoices in the tax field within 2 years after the effective date of this Law. The extension of the effective time of this provision is to ensure the preparation of technology infrastructure and human resource for more effective implementation of this provision and avoiding the confusion in actual implementation.

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It is expected that if approved by the National Assembly, the revised Law on Tax Administration will come into effect from 2020. What are your expectations of this revised Law?

I believe that the amendments in this draft will contribute to overcoming shortcomings in tax administration. In terms of policy, we have basically covered the requirements to ensure more effective tax administration, to avoid budget losses. At the same time, the provisions also specify the rights and responsibilities of taxpayers. The draft Law provides for duties, powers and responsibilities of agencies, organizations and individuals in tax administration; competence to write off tax debts, late payment and fines. Along with that, adding a provision that the taxpayer has the right to require from the tax agency to pay interest at the rate of 0.03% / day based on tax amounts, fines and overpaid amounts. Thus, the responsibilities and powers of the tax agency and taxpayers are more specific.

Thank you Sir!

By Thuy Linh/ Huyen Trang