In addition to the factors " Tax inspection results are consistent with the reality at the enterprise", "Tax inspection results help to promptly correct and handle violations of enterprises", " Regulations on administrative sanctions for tax violations are consistent with the violations of enterprises " which are highly appreciated by enterprises, the factor " Administrative sanctions are not enough to deter enterprises" still has many opinions agreeing and strongly agreeing because the handling of false declaration only fines 10% of the amount of false declaration, so it is not enough to deter enterprises, on the other hand, the compliance with payment according to the handling decision has not been seriously implemented, the actual amount paid to the State budget over the years is low, some years only reaching 18% according to the issued administrative sanction decision . The collection and payment urging is almost only carried out in the year of implementing the plan, the following year it is implemented according to the new plan without any department to monitor and urge the implementation of the decision, there are no strict measures to handle cases of taxpayers who do not comply with paying the state budget according to the law; besides, taxpayers' awareness of compliance with tax payment according to the handling decision is still low.
On the other hand, the tax authority has not yet specifically assessed the effectiveness of tax inspection work for business management departments in order to replicate the results of tax inspection work for other businesses that have not been inspected to maximize the effectiveness of tax inspection work.
In addition, the inspection results show that the rate of enterprises handled through inspection accounts for about 80% of the total number of inspected enterprises, the amount of money handled for enterprises is only concentrated in certain enterprises, showing that the quality of inspection planning and analysis before inspection has many cases of inaccurate risk identification, and the qualifications of civil servants are limited.
2.4. Summary of Chapter 2
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Chapter 2 of the thesis analyzed the current situation of tax inspection at enterprises of the An Giang Provincial Tax Department in the self-declaration and self-payment mechanism. Through the study, the functions and tasks of the Tax Department and the Tax Inspection Department were summarized ; the current situation of tax inspection planning, tax inspection at enterprises and post-inspection results processing. In general, tax inspection work has achieved encouraging results in the context of a shortage of officers and employees, limited qualifications while the number of enterprises to be implemented is large; through inspection, it has been discovered
detect and promptly handle fraudulent acts, use of illegal invoices to appropriate VAT refunds of enterprises exporting goods to the Cambodian market, and provide information on tax law violations to functional departments and tax branches to strengthen tax management and evaluate tax inspection work nationwide. In addition, through analysis and evaluation of tax inspection work, it has pointed out the limitations that need to be overcome:
- The collected information used for assessment and analysis to be included in the inspection plan of enterprises is still limited, lacking information from related sectors, information on the production and business situation of enterprises, while the collected information sources are not uniform , especially information related to enterprises managed by the Tax Department.
- The inspection plan is not entirely based on risk analysis and assessment. Some small and medium-sized enterprises with low risks are included in the inspection plan (taking little time to implement), while some large enterprises are not included in the inspection plan.
- Arranging civil servants to be heads of inspection teams and members of inspection teams but not having deep understanding of tax policies and laws, inspection work is not effective; training and professional development in tax inspection work, although focused on, is not regular.
- There has been no comprehensive assessment of the effectiveness of inspection planning based on the assessment of the relationship between inspection planning and in-depth analysis of financial statements, tax settlement of enterprises and inspection results at enterprises.
- Processing of post-inspection results has not been timely, inspection conclusions have not been based on legal grounds, and administrative violation sanction decisions have not been thoroughly monitored and urged to be implemented .
The above limitations are important bases for proposing solutions to improve the management of tax inspection activities at enterprises in the self-declaration and self-payment mechanism of the An Giang Provincial Tax Department in Chapter 3.
CHAPTER 3: SOME SOLUTIONS TO IMPROVE TAX INSPECTION ACTIVITIES FOR ENTERPRISES IN THE SELF-DECLARATION AND SELF-PAYMENT MECHANISM AT THE TAX DEPARTMENT OF AN GIANG PROVINCE
3.1. Development orientation of An Giang Provincial Tax Department
3.1.1. Administrative reform
An Giang Provincial Tax Department always closely follows and strictly implements the guidelines and regulations on administrative reform (AR) of the General Department of Taxation and the Ministry of Finance, always researches and proposes to cut unnecessary administrative procedures, creating all favorable conditions for taxpayers.
Determining that the effective implementation of administrative procedure reform plays an important role and significance , contributing to improving the quality and efficiency of professional work, while creating favorable conditions for people and businesses to fulfill tax obligations, An Giang Provincial Tax Department always focuses on deploying and strengthening the implementation of administrative reform to Tax Branches and civil servants in the whole industry.
To facilitate taxpayers in fulfilling their obligations, the Tax Department has directed the promotion of support solutions at the one-stop shop at the Tax Department and 11 Tax Branches of districts, towns and cities. Propaganda and support for taxpayers has been promoted in many practical forms such as publicizing on mass media, the industry's electronic information page; posting tax-related administrative procedures at the Tax Department to disseminate tax policies to ensure transparency.
Maintain quarterly dialogue conferences with businesses to disseminate new legal documents, answer questions and guide procedures for taxpayers; propagate the tax sector's manifesto of "publicity, transparency, integrity, efficiency"; do not issue procedures outside of regulations; promote the one-stop mechanism, one-stop connection with the Department of Planning & Investment in business registration and tax registration.
3.1.2. Training and fostering to improve the quality of civil servants
Human assessment is the decisive factor for the success of every job, in addition to professional training according to the General Department 's program.
Tax Department: Basic inspector and senior inspector classes; classes on tax declaration and accounting, debt management... An Giang Provincial Tax Department also focuses on training knowledge of financial report analysis, tax settlement to serve tax inspection work; state management classes; classes to improve political theory, in addition, the Tax Department encourages officers and civil servants to self-study to improve their professional qualifications , skills, foreign language and IT skills...
With the growth of the economy, the number of enterprises will develop rapidly, many new business lines will arise according to market trends, requiring the building of a team of tax officials who are both red-handed and specialized to meet the requirements of tasks in the new situation.
3.1.3. Increase investment in machinery and equipment, apply information technology to support tax management and tax inspection work.
The Department of Information Technology (General Department of Taxation) has coordinated with the Department of Taxation to upgrade the server system of the Tax Department office and 02 Tax Branches according to the Department-level tax management model. The infrastructure system and IT equipment are increasingly equipped with full and modern equipment to ensure security requirements and provide information quickly, actively supporting the work of directing, operating and managing effectively.
The email system is deployed for civil servants in the entire industry. Policy documents, management procedures, and work programs are exchanged directly online, facilitating management work.
In addition, An Giang Provincial Tax Department focuses on investing in machinery and equipment, applying information technology in tax management activities with high connectivity and automation, creating favorable conditions for building a taxpayer database, on that basis, analyzing, assessing risks, classifying taxpayers at all stages of tax registration, tax declaration, tax payment and tax refund; strictly handling cases of tax law violations.
3.1.4. Strengthen revenue management and prevent revenue loss, especially in the areas of transfer pricing and e-commerce.
Strengthening tax collection management and preventing tax losses in the transfer sector
Pricing and e-commerce are the key tasks of An Giang Provincial Tax Department, to
To perform these tasks well, in the coming time the Tax Department needs to strengthen
The management of information declaration of related party transactions of enterprises aims to improve the compliance of taxpayers, and at the same time create a basis for tax authorities to assess and analyze risks and take timely management measures for enterprises with transfer pricing behavior.
Closely coordinate with the General Department of Taxation to build a database on profit margins of independent enterprises in fields with many affiliated enterprises operating and showing signs of transfer pricing to serve the work of risk analysis, develop inspection plans and serve as a basis for determining taxable income for enterprises that do not comply with the obligation to determine market prices for products transferred in related-party transactions, do not declare or declare related-party transactions incorrectly.
For the inspection of e-commerce, it is necessary to study, identify and classify enterprises into typical types of e-commerce, focusing first on the following types: Online game business (gameonline); providing online advertising services; online sales; providing digital products (music, movies ...). Thereby, strengthening the inspection of e-commerce enterprises to promptly correct and deter violations, and at the same time, having measures to propagate and guide to help individuals and organizations doing e-commerce business fully understand and strictly perform their tax obligations .
Training to improve skills in anti-transfer pricing and e-commerce inspection for officials and public employees working in inspection, proposing technical support from international organizations, supporting information provision from the General Department of Taxation and related sectors to enhance the effectiveness of tax inspection for anti-transfer pricing and e-commerce activities.
3.2. Some solutions to improve tax inspection activities at the An Giang Provincial Tax Department
3.2.1. Solutions to improve inspection planning
3.2.1.1. Building information sources
Tax management according to risk management mechanism, to determine risks in tax management in general and inspection planning in particular, information source is the most important factor, deciding the quality of planning work.
In addition to collecting information from business declarations, information from tax departments such as the Inspection Department, Tax Declaration and Accounting Department, Stamp Management Department, Tax Debt Management Department... the Tax Department needs to build information sources collected from Commercial Banks, Customs, Market Management, Police, Investment Planning, Natural Resources and Environment; information sources collected from business production activities of enterprises such as production processes, trading partners, investment and development situation of production and business. These are very important sources of information, practically serving the planning work as well as tax inspection at enterprises.
Currently, the collection of information from relevant sectors is still fragmented, not systematic, and is only carried out for each specific case. Although there are coordination regulations between the Ministry of Finance and the State Bank, between the General Department of Taxation and the General Department of Customs, between the General Department of Taxation and the General Department of Police, etc. on coordination in providing information, the provision of information is still fragmented, without a summary and assessment according to certain deadlines according to the regulations to point out the positive aspects that need to be promoted, the limitations that need to be overcome, and at the same time, point out loopholes in the policy mechanism to propose appropriate amendments and supplements.
In order for the Tax sector to have a rich and quality source of information to serve the work of risk assessment, planning and conducting inspections at enterprises, it is necessary to do a good job of coordinating with other sectors. Specifically, it is necessary to go through commercial banks to get information on payment sources, cases of sales revenue, payment but no tax declaration, partners with buying and selling relationships, loan sources; go through the Customs agency to get information on import and export goods, which are subjects enjoying 0% VAT rate for exported goods, information on temporarily imported and re-exported goods; the Department of Natural Resources and Environment provides information on licensing and resource exploitation; the Police provides information on the acts and tricks of enterprises with tax evasion and tax fraud with signs of crime... Building this source of information will serve very effectively the work of planning inspections as well as monitoring tax declarations as well as tax inspections at enterprises.
3.2.1.2. Building a unified IT application program
Building a unified IT application program between the Tax Department and the Tax Branch facilitates data collection, data analysis, risk assessment and selection of enterprises to include in the inspection plan to ensure accuracy and consistency among enterprises (both enterprises managed by the Tax Department and the Tax Branch) across the province, creating accuracy, objectivity and fairness among enterprises.
The General Department of Taxation needs to support capital investment in IT equipment to upgrade application programs from the Tax Branch level model to the Tax Department level model, and train and foster civil servants capable of operating and effectively exploiting application programs to serve tax management as well as tax inspection.
Currently, the IT application programs of the Tax Department are almost separate, not linked, not integrated with each other (declaration program, debt management, financial report analysis, seal management, etc.). Therefore, it is necessary to build a comprehensive IT application program that can integrate all individual programs to accurately assess all issues related to the enterprise, as a basis for risk assessment, and build an effective inspection plan for the enterprise.
3.2.1.3. Select businesses through risk analysis to include in the inspection plan
Risk assessment analysis is based on static criteria guided by the General Department of Taxation. In addition, Tax Departments can develop dynamic criteria according to the characteristics and situation of their locality. To limit the impact of subjective opinions of the person developing the inspection plan in adding dynamic criteria and possible negative impacts in selecting enterprises to include in the inspection plan, in my opinion, there should be specific regulations on assigning certain weights to static criteria issued by the General Department of Taxation. For dynamic criteria, only a weight of 1 should be assigned to limit the abuse of power by officials when adding more criteria and using high weights to select enterprises to include in the plan or exclude from the inspection plan.
In addition, in my opinion, the selection of enterprises to be included in the inspection plan must be based on the level of risk and the size of the enterprise, with priority given to size.
enterprises (prioritizing the selection of large-scale enterprises) to limit the inclusion of small or very small-scale enterprises in the inspection plan. In addition, the initiative should be given to each Tax Department to select a certain proportion of enterprises to include in the inspection plan based on experience in tax management and inspection work, and must have specific explanatory comments (these enterprises are large-scale, have unusual developments in tax declaration and settlement, but through analysis are not considered high-risk).
3.2.1.4. Develop an annual inspection plan
Currently, the development and approval of enterprises to be included in the annual inspection plan is carried out according to the direction of the General Department of Taxation. In recent years, the General Department of Taxation has assigned the implementation of 1.5 to 1.6% of managed enterprises. Through implementation, it has shown positive effects of developing inspection plans, the number of enterprises inspected annually has increased significantly, and violations of tax laws have been promptly prevented and handled. However, in recent years, certain limitations have also been revealed in selecting enterprises to be included in the plan. Many small and medium-sized enterprises have been included in the plan for many years, while some large-scale, high-risk enterprises have not been included in the plan; through analysis, it is proposed to issue inspection decisions with limited contents (no comprehensive inspection, many contents). The above limitations come from following the planned targets and the quantity assigned by the General Department of Taxation, so to complete the task, there is no other way but to select small and simple enterprises, propose to issue inspection decisions with limited content, not comprehensive inspection to ensure completion of the plan.
Therefore, in my personal opinion, the annual plan assignment of the General Department of Taxation must be based on the human resources and implementation capacity of the Tax Department so that the assigned plan is feasible and ensures the quality of the inspection, controls unusual signs in the production, business activities, and tax declarations of enterprises. In addition, the Tax Department needs to increase the number of highly qualified personnel from other departments with a lot of experience for the tax inspection department to ensure work requirements.