Not notifying to Vietnamese Tax Agency the wear and tear levels formulated by the enterprise

 Not notifying to Vietnamese Tax Agency the the wear and tear levels of raw materials, supplies, fuel, power and goods formulated by the enterprise in accordance with the Letter No.482/TCT-CS dated 18 February 2014 of General Tax Agency from 01/01/2014.

Not notifying to Vietnamese Tax Agency the wear and tear levels formulated by the enterprise

 Vietnamese General Tax Agency comments on proposal relating to notifying to Vietnamese Tax Agency the the wear and tear levels of raw materials, supplies, fuel, power and goods formulated by the enterprise as a basis for determining reasonable costs for Corporate Income Tax (CIT).

 Pursuant to Article 9 of the Law on income tax amendments No. 32/2013/QH13 applicable from 01 January 2014, there is no provision relating to notifying to tax agency the wear and tear levels of raw materials, supplies, fuel, power and goods formulated by the enterprise as a basis for determining exceesive expenses over the wear and tear levels for Corporate Income Tax (CIT).

 Therefore, enterprise does not notify to Vietnamese Tax Agency the the wear and tear levels of raw materials, supplies, fuel, power and goods formulated by the enterprise, the tax authorities should change the way local tax administration under the new regulations. Instead, if the enterprise has the signs of violation specified in Clause 1, Article 37 of the Law on Tax Administration  No.78/2006/QH11, Tax Agencies shall apply the measure of tax assessment.

 Paragraph 1 of Article 37 of the Law on Tax Administration No.78/2006/QH11 specified number of cases of tax assessment, including:

 a/ Taxpayers fail to make tax registration;

 b/ Taxpayers fail to submit their tax declaration dossiers; or  submit their dossiers ten days after the deadline for submission of tax declaration dossiers or the date of expiration of the prolonged time limit for submission of tax declaration dossiers;

 c/ Taxpayers fail to make tax declaration, or fail to submit additional tax dossiers upon request of tax agencies, or they declare tax bases inaccurately, dishonestly and inadequately;

 d/ Taxpayers fail to record or inadequately, untruthfully and inaccurately record figures in accounting books for determining the tax liability;

 e/ Taxpayers fail to produce accounting books, invoices, vouchers and other necessary documents related to the determination of payable tax amounts within the set time limit;

 f/ Taxpayers purchase, sell, exchange, and account values of, goods or services not in accordance with common transaction values in the market;

 g/ Taxpayers are signs that they flee away or disperse their assets in order to shirk their tax liability.

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