VI What type of risk do tax refund dossiers involve? What time limit do tax refund dossiers involve? If tax refund dossiers involve high tax risks and are not subject to pre-inspection and post-refund, what time limit do post-refund inspections take place? Through today’s article, let’s find out about this issue with Pham Consult!
What type of risk do tax refund dossiers involve? If tax refund dossiers involve first-inspection and a refund later?
Pursuant to Clause 1, Article 18 of Circular 31/2021/TT-BTC, it is stipulated as follows:
Applying risk management in tax refund
Tax authorities classify tax refund dossiers according to the provisions of the Law on Tax Administration, relevant legal documents or current regulations. Regarding the classification of tax refund dossiers by risk, based on the results of the classification of tax refund dossier risks in Article 13 of this Circular, the tax authority shall apply appropriate measures in resolving and handling tax refund dossiers as follows:
1. Classification and settlement of tax refund dossiers
a) Tax refund dossiers with high tax risks: Conduct pre-inspection, post-refund
Within 12 consecutive months from the beginning of the fiscal year, the taxpayer has consecutive tax refund dossiers assessed as high risk:
a.1) In case the current risk assessment compared to the previous assessment is different in terms of total risk points or risk points at each criterion, index: The tax refund dossier is subject to pre-inspection, post-refund.
a.2) In case the current risk assessment compared to the previous assessment is the same in terms of total points and points at each criterion, index; or the tax refund dossier being implemented compared to the previous assessment has a lower risk score at each index, leading to a correspondingly lower total risk score:
– The results of the previous tax refund dossier inspection or the post-tax refund inspection and examination do not detect any false declarations leading to a shortage of tax payable or an increase in the amount of tax refunded, then the next tax refund dossier is not subject to pre-tax refund inspection.
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Thus, according to the regulations, tax refund dossiers that are high-risk tax, the tax authority shall conduct pre-inspection and post-refund.
Note: In case, after applying the tax refund dossier classification, during the process of processing the tax refund dossier, the tax authority discovers that the taxpayer has signs of violating tax laws, customs laws or in case if the taxpayer does not explain or supplement the tax refund dossier or explains or supplements but cannot prove that the declared tax amount is correct, the tax authority shall change the application of the tax refund dossier classification form of the taxpayer from being subject to pre-refund, post-inspection to being subject to pre-inspection, post-refund; the approval of the change in the application of the classification form must be updated in the business information system.
For tax refund dossiers that are high-risk tax but not subject to pre-refund, post-refund inspection, what is the time limit for post-refund inspection and audit?
Pursuant to Clause 2, Article 18 of Circular 31/2021/TT-BTC, the following provisions apply:
Applying risk management in tax refunds
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2. Post-tax refund inspections
a) The order of post-tax refund inspections shall be arranged by the tax authority based on the total risk score from high to low within five (05) years from the date of the tax refund decision:
a1) High risk (for tax refund dossiers not subject to pre-tax refund inspection as prescribed in Point a, Clause 1 of this Article): Conduct inspections within one (01) year from the date of issuance of the tax refund decision;
a2) Medium risk: Conduct inspections within three (03) years from the date of issuance of the tax refund decision;
a3) Low risk: Conduct inspections within five (05) years from the date of issuance of the tax refund decision;
a4) Based on the actual situation, the tax authority may conduct post-refund inspections earlier than the above deadline.
b) The General Department of Taxation shall specify the post-refund inspections; combined with tax law compliance inspections as prescribed.
Thus, according to regulations, tax refund dossiers that are high-risk tax documents and are not subject to pre-refund inspections shall be inspected and audited within one (01) year from the date of issuance of the tax refund decision.
How is the risk level of individual taxpayers classified?
The risk level of individual taxpayers is classified according to the provisions of Article 12 of Circular 31/2021/TT-BTC, specifically as follows:
(1) High risk.
(2) Medium risk.
(3) Low risk.
Accordingly, the risk level of individual taxpayers is classified based on the results of tax law compliance assessment in Article 10 and the criteria specified in Appendix III of Circular 31/2021/TT-BTC.
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