VI Are administrative violations of invoices due to material dependence considered a mitigating circumstance in the field of taxes and invoices? What is the maximum fine for administrative violations of invoices? Through today’s article, let’s find out about this issue with Pham Consult!
Are administrative violations of invoices due to material dependence considered a mitigating circumstance in the field of taxes and invoices?
Pursuant to Clause 1, Article 6 of Decree 125/2020/ND-CP, the following provisions are made:
Mitigating and aggravating circumstances in the field of tax and invoices
1. Aggravating and mitigating circumstances as prescribed by law on handling administrative violations.
2. Administrative violations with tax amounts (tax arrears, tax evasion or tax amounts exempted, reduced or refunded higher) of VND 100,000,000 or more or the value of goods and services of VND 500,000,000 or more are determined to be large-scale administrative violations of tax according to the provisions of Point l, Clause 1, Article 10 of the Law on Handling Administrative Violations. Administrative violations of 10 or more invoices are determined to be large-scale administrative violations of invoices according to the provisions of Point l, Clause 1, Article 10 of the Law on Handling Administrative Violations.
Referring to the provisions of Article 9 of the Law on Handling of Administrative Violations 2012, mitigating circumstances in the field of tax and invoices include:
– The administrative violator has taken actions to prevent or reduce the consequences of the violation or voluntarily remedy the consequences and compensate for damages.
– The administrative violator has voluntarily declared, sincerely repented; actively helped the competent authorities detect and handle administrative violations.
– Committing an administrative violation in a state of mental agitation caused by the illegal acts of others; exceeding the limits of legitimate defense; exceeding the requirements of an urgent situation.
– Committing an administrative violation due to being forced or being materially or mentally dependent.
– The administrative violator is a pregnant woman, an elderly person, a person with an illness or disability that limits their ability to perceive or control their behavior.
– Committing an administrative violation due to especially difficult circumstances that were not caused by them.
– Administrative violations due to backwardness.
– Other mitigating circumstances as prescribed by the Government.
Thus, administrative violations of invoices due to material dependence are considered mitigating circumstances in the field of tax and invoices.
What is the maximum fine for administrative violations of invoices?
According to Point b, Clause 1, Article 7 of Decree 125/2020/ND-CP, the following provisions are made:
Forms of sanctions, remedial measures and principles for applying fines when sanctioning administrative violations of taxes and invoices
1. Main forms of sanctions
a) Warning
Warnings are applied to violations of tax procedures and invoices that are not serious, have mitigating circumstances and are subject to warnings as prescribed in this Decree.
b) Fines
The maximum fine shall not exceed VND 100,000,000 for organizations committing administrative violations regarding invoices. The maximum fine shall not exceed VND 50,000,000 for individuals committing administrative violations regarding invoices.
The maximum fine shall not exceed VND 200,000,000 for taxpayers who are organizations committing violations of tax procedures. The maximum fine shall not exceed VND 100,000,000 for taxpayers who are individuals committing violations of tax procedures.
A fine of 20% of the tax arrears or the tax amount exempted, reduced, or refunded higher than prescribed for acts of false declaration leading to a shortage of tax payable or an increase in the amount of tax exempted, reduced, or refunded.
A fine of 1 to 3 times the amount of tax evaded for acts of tax evasion.
Fines corresponding to the amount not deducted from the state budget account for violations as prescribed in Clause 1, Article 18 of this Decree.
Accordingly, the maximum fine for administrative sanctions for invoices is VND 50,000,000 for individuals and VND 100,000,000 for organizations.
What are the cases where administrative sanctions for violations of tax and invoices are not imposed?
What are the cases where administrative sanctions for violations of tax and invoices are not imposed according to Article 9 of Decree 125/2020/ND-CP:
– No administrative sanctions for violations of tax and invoices are imposed in cases where administrative sanctions are not imposed according to the provisions of law on handling administrative violations.
Taxpayers who are late in performing tax procedures and invoices electronically due to technical problems of the information technology system announced on the tax authority’s electronic information portal are considered to be committing violations due to force majeure events as prescribed in Clause 4, Article 11 of the Law on Handling of Administrative Violations 2012.
– Do not impose administrative penalties for tax and invoice violations in cases where administrative violations are not subject to penalties according to the provisions of law on handling administrative violations. Taxpayers who are late in performing tax procedures and invoices electronically due to technical problems of the information technology system announced on the Electronic Information Portal of the tax authority are cases of committing violations due to force majeure events as prescribed in Clause 4, Article 11 of the Law on Handling of Administrative Violations 2012.
– No administrative penalties for tax violations, no late payment fees for taxpayers who commit tax administrative violations due to implementation of guidance documents and handling decisions of tax authorities and competent state agencies related to the content of determining the taxpayer’s tax obligations (including guidance documents and handling decisions issued before December 5, 2020), except in cases where tax inspections and examinations at the taxpayer’s headquarters have not yet detected errors by the taxpayer in declaring and determining the amount of tax payable or the amount of tax exempted, reduced or refunded, but then the taxpayer’s tax administrative violations are discovered.
– No administrative penalties for tax violations in cases of incorrect declaration, taxpayers who have supplemented their tax declaration dossiers and voluntarily paid the full amount of tax payable before the time the tax authority announces the decision to conduct a tax audit or tax inspection at the taxpayer’s headquarters or before the time the tax authority discovers that it has not conducted a tax audit or tax inspection at the taxpayer’s headquarters or before other competent authorities discover it.
– No penalties for violations of tax procedures for individuals who directly settle personal income tax who are late in submitting personal income tax settlement dossiers and have incurred a refunded tax amount; business households and business individuals who have been taxed according to the provisions of Article 51 of the Law on Tax Administration 2019.
– No penalties for violations of the deadline for submitting tax declaration dossiers during the time the taxpayer is granted an extension to submit such tax declaration dossiers.
– No administrative penalties for tax violations, no late payment fees for taxpayers who commit tax administrative violations due to implementation of guidance documents and handling decisions of tax authorities and competent state agencies related to the content of determining the taxpayer’s tax obligations (including guidance documents and handling decisions issued before December 5, 2020), except in cases where tax inspections and examinations at the taxpayer’s headquarters have not yet detected errors by the taxpayer in declaring and determining the amount of tax payable or the amount of tax exempted, reduced or refunded, but then the taxpayer’s tax administrative violations are discovered.
– No administrative penalties for tax violations in cases of incorrect declaration, taxpayers who have supplemented their tax declaration dossiers and voluntarily paid the full amount of tax payable before the time the tax authority announces the decision to conduct a tax audit or tax inspection at the taxpayer’s headquarters or before the time the tax authority discovers that it has not conducted a tax audit or tax inspection at the taxpayer’s headquarters or before other competent authorities discover it.
– No penalties for violations of tax procedures for individuals who directly settle personal income tax who are late in submitting personal income tax settlement dossiers and have incurred a refunded tax amount; business households and business individuals who have been taxed according to the provisions of Article 51 of the Law on Tax Administration 2019.
– No penalties for violations of the deadline for submitting tax declaration dossiers during the time the taxpayer is granted an extension to submit such tax declaration dossiers.
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