During business operations, compliance with tax and invoice regulations is extremely important for every organization and individual. However, sometimes tax and billing violations can occur on the part of businesses or individuals. In response to these violations, the law clearly stipulates cases where it is necessary to submit a written explanation to clarify the violation and be responsible before the law. In this article, we will learn more about specific situations when it is necessary to submit a document explaining tax and invoice violations, along with related regulations and legal consequences.
1. Cases where it is necessary to send a dispatch explaining tax and invoice violations
According to the provisions of Clause 1, Article 37 of Decree 125/2020/ND-CP, businesses, organizations and individuals are obliged to submit a written explanation to the tax authority within 10 days from the date of receiving the Notice of Violation. tax administration, invoices issued by tax authorities in the following cases:
1.1. Tax violations
Underpaying or late tax payment:
- Underpaying the tax amount payable according to regulations.
- Late payment of tax amount due according to regulations.
Inaccurate or incorrect tax declaration:
- Incorrect declaration of tax amount payable.
- Incorrect declaration of tax amount payable.
- Incorrect declaration of tax return content.
- Misstatement of tax return content.
Using illegal invoices and documents:
- Using invoices printed by other organizations or individuals.
- Use canceled invoices.
- Using invoices that do not fully state the prescribed contents.
- Using invoices to record untrue revenues and expenses.
Violation of other tax regulations:
- Failure to register for tax according to regulations.
- Failure to declare tax according to regulations.
- Not paying taxes according to regulations.
- Failure to prepare and maintain accounting books according to regulations.
- Failure to cooperate with tax authorities during tax inspection and examination.
1.2. Invoice violations
Using invoices incorrectly:
- Using invoices for improper purposes.
- Using invoices incorrectly for the intended users.
- Using the invoice incorrectly with the time of use.
Printing and issuing invoices incorrectly:
- Printing an incorrect invoice form.
- Print invoice with incorrect quantity.
- Printing invoice with incorrect content.
- Issue invoices to the wrong subject.
- Issue invoices at the wrong time.
Improper invoice management:
- Failure to prepare and maintain invoice management books according to regulations.
- Failure to check and monitor the use of invoices according to regulations.
- Failure to declare and report on the use of invoices according to regulations.
Violations of other regulations on invoices:
- Buy and sell invoices.
- Give, give away bills.
- Using fake invoices.
- Using invoices that have been revoked.
Note :
– Enterprises, organizations and individuals need to base on the content of the Notice of administrative violations on taxes and invoices issued by tax authorities to specifically determine the violation and prepare an appropriate written explanation. .
– The written explanation needs to be made fully, accurately, on time and fully signed and stamped by the legal representative of the violating enterprise, organization or individual.
2. Deadline for sending official letters explaining tax and invoice violations
According to current regulations of Vietnamese law on handling administrative violations, the deadline for sending official letters explaining tax and invoice violations is prescribed as follows:
2.1. General term
Organizations and individuals who commit tax administrative violations must send a written explanation to the person with authority to sanction tax administrative violations within no more than 05 days from the date of making a record of the administrative violation.
2.2. Special case
In case there are many details that need to be investigated: The time limit for submitting explanations may be longer but must not exceed 15 days .
Individuals and organizations that commit tax administrative violations request direct explanation: Must send a written request for direct explanation to the person with authority to sanction tax administrative violations within 02 working days , including from the date of making a record of tax administrative violations.
Note :
– The date of making the administrative violation record is the date recorded on the administrative violation record prepared by the tax authority.
– The written explanation must be made in 02 copies , fully signed and stamped by the legal representative of the violating organization or individual.
- The original written explanation is sent to the tax authority with authority to sanction tax administrative violations.
- A copy of the written explanation is kept at the violating organization or individual.
3. Consequences of not sending a dispatch explaining tax and invoice violations on time
According to Article 3 of Decree 125/2020/ND-CP, failure to submit a dispatch explaining tax and invoice violations on time can lead to serious consequences for violating organizations and individuals as follows:
3.1. Penalized for administrative violations
Decision on sanctioning administrative violations:
- Competent tax authorities will issue decisions on administrative sanctions for violating organizations and individuals.
- The specific fine will depend on each violation and the provisions of law.
Aggravating circumstances: Failure to submit an explanation may cause the tax authority to consider this as an aggravating circumstance for the violation, leading to a higher fine.
3.2. Affects the reputation of violating organizations and individuals
Lack of respect for the law:
- Failure to submit an explanation on time shows a lack of respect for the law and a poor cooperative attitude with tax authorities.
- This can affect the reputation of violating organizations and individuals in the eyes of state management agencies and business partners.
List of tax violations: In some cases, failure to submit explanations can lead to the violating organization or individual being placed on the list of “tax violating enterprises/individuals”, causing difficulties for operations. business activity.
3.3. Makes it difficult to resolve the case
Determining the cause of the violation: Failure to submit an explanation may make it difficult for the tax authority to determine the cause, clarify the violation and provide appropriate handling measures.
Extending the resolution time: This can lead to a prolongation of the case resolution time, affecting the legal rights of the violating organization or individual.
