Taxman wants sweeping power to fight tax violations

HCMC – The General Department of Taxation has proposed new regulations that give sweeping power to tax authorities to fight tax violations, including putting violators in custody or filing criminal charges against them.

In the draft law on tax management sent to the Government, the tax authority plans to set up a force with investigative power, build a database and take professional measures to prevent violations against the tax law.

Besides, the tax authority wants to have authority to ask related agencies, organizations and individuals to provide information and documents to facilitate investigations, as well as seal goods, storehouses, documents, and detain violators in case there is proof of violations.

If serious violations subject to criminal charges are detected, the taxman can initiate prosecution and undertake investigations in accordance with the criminal procedure code and the law on organization of criminal investigation bodies.

According to the tax authority, those regulations are proposed to deter and prevent tax evasion and fraud.

As explained by the tax department, tax investigations are by nature prosecutions against taxpayers who intentionally decline to fulfill their tax obligations.

The taxman, according to the proposed regulations, can launch investigations without prior notice, and investigated tax payers will have lawyers or representatives during the process.

Many countries have already assigned tax investigations to their tax bodies. Once violations need to be prosecuted, tax authorities will take measures to collect evaded taxes, and at the same time hand over the cases to competent authorities in compliance with the criminal proceedings law.

More than 80 countries, including some ASEAN countries, have set up tax investigation bodies. The tax management body in Vietnam consists of both tax and customs agencies, with the customs having been given power to launch investigations in its area but the tax authority having no such power.

Source: The Saigon Times