tax refund settlement, in addition, it is necessary to closely coordinate between the departments doing tax refund management work and the IT department to build application programs suitable for practice and actively support in professional work. The basic condition for implementing computerization is that the operations must be standardized in terms of format, forms, processing procedures and applied uniformly throughout. Focus on processing work, tax refund reporting work via the network environment, thereby improving the efficiency of tax management activities in general and tax refund work in particular.
- Strengthening facilities and working means through new investment and upgrading equipment to serve the transmission of information for tax refund management. This is one of the important and necessary tasks: When having a good and modern equipment system to serve the transmission of information, processing information quickly and promptly, it is certain that the information transmitted promptly is of quality to serve the prevention and handling of risks. In addition, once the information is updated promptly, it also helps leaders to make timely policies and measures to bring high efficiency if given at the right time.
5.3. Support recommendations for implementing the solution
5.3.1. For the State
- Strengthening the management and use of invoices and documents: In the past, although the legal regulations on invoice work have made many efforts, there are still many difficulties and obstacles due to legal regulations that have many shortcomings and are unreasonable. Invoices are one of the important legal bases for businesses to determine their tax obligations. Therefore, it is necessary to continue researching and perfecting some contents on invoices as follows:
Maybe you are interested!
-
The Important Position And The Level Of Impact Of Risk Control In VAT Refund Management Of Tan Uyen Regional Tax Department -
Business registration under Vietnam Enterprise Law - Current situation and some recommendations - 1 -
Solutions for Developing Supporting Industries in the Electronics Industry -
Recommendations to Shb Human Resource Development Board -
Prohibition of discrimination in Vietnamese labor law - Current situation and some recommendations - 2
+ Specify the method of notifying information about legal invoices used for easy access by businesses. Invoice issuance notices sent by businesses to tax authorities must also be publicly posted at the business's headquarters.
+ Develop and implement a plan to backup e-invoice data, increase the capacity of transmission lines and set up backup lines to ensure stable quality. At the same time, continue to research and refer to the experiences of countries that have successfully applied e-invoices to find technological solutions suitable for Vietnam's reality. In particular, some countries have successfully applied this model such as Korea, Germany, etc.
+ It is necessary to have more specific regulations on sanctions as well as penalties that are sufficiently deterrent to invoice violations.
- Tax management in general and VAT deduction and refund in particular are not only independent activities of the Tax Department. To perform this work well, there must be synchronous coordination between State management agencies as well as the whole society.
festival:
+ For Customs agencies: Implement regulations on information exchange and coordination.
The work of specifying in writing in the work of risk management, fighting against fraud in value added tax refunds between the Tax Department and Customs. To ensure the work of information exchange and cooperation, it is necessary to raise the awareness of the officers of the two sectors about the importance of implementing the regulations on information exchange and coordination between the customs and tax agencies. On that basis, customs and tax units need to be more flexible in providing information by means such as email, documents and direct exchanges; Regularly summarize and evaluate the results of operations, promptly remove arising problems; Strengthen the work of updating information to meet all 3 criteria: Complete - timely - accurate; Improve and perfect the information technology system, data on business activities and tax lookup information, tax enforcement..., ensure compatibility between the customs and tax agencies, focus on people and businesses to serve more cooperatively and responsibly. The two agencies are responsible for regularly supporting and coordinating professional training in tax refund crime prevention and control and exchanging experiences in tax refund crime prevention and control.
+ For the police: Implement well the coordination regulations between the tax authorities and the police to investigate, verify and promptly handle acts of illegal purchase and use of invoices, illegal use of invoices. In case the violating taxpayers in the management area flee from the business area, there must be synchronous coordination between the special working group and the competent authorities to take measures to prevent violations and prosecute the organizations and individuals.
+ For the Department of Planning and Investment: It is necessary to coordinate with the Department of Planning and Investment of Binh Duong province in providing information on business registration, inspecting the establishment of enterprises and their operations after being granted a business license to promptly detect and handle enterprises that register for many industries but in reality only operate in one industry, subjects showing signs of violations, fleeing from business addresses, and appropriating State tax money.
+ For credit institutions: Coordinate to provide tax authorities with some information to serve the determination of tax obligations in the field of customs and taxes, such as records, transaction information via bank accounts; Records, documents, payment account numbers, ... and some other information in providing information.
- Granting the authority to investigate and prosecute tax law violations to the authorities.
Tax:
Our country's practice and the experience of countries around the world show that there is still a
A number of organizations and individuals deliberately evade, avoid, commit tax fraud, and appropriate tax money by many sophisticated tricks. Tax law violations do not only occur in one unit or individual but involve many organizations and individuals in different localities.
within a country, even involving many countries. The above violations will increase if the tax authorities do not have the function and do not apply effective measures to prevent them.
Tax investigation aims to promptly detect tax evasion and tax appropriation, to collect enough tax for the state budget, to ensure effective prevention of revenue loss; to ensure fairness in tax obligations; to create an equal competitive environment among tax-paying organizations and individuals.
Because the Tax Authority has human resources with professional expertise in tax, financial accounting, and management of taxpayer information, and international cooperation on tax, it is necessary to give the Tax Authority the right to investigate and prosecute tax violations to ensure timely and effective prevention and handling of tax law violations.
5.3.2. For the Tax Industry
- Quickly complete the tax policy system in general and sub-law documents in particular to be consistent, consistent and close to practical requirements. When issuing tax policies, it is necessary to explain words clearly, sentences concisely and easily understood so that application is easy to understand, with the same viewpoint, avoiding the situation of "one word with many meanings".
- The time of application of legal documents must ensure that they can be applied for a long time. The amended and supplemented Law must replace the previous Law to avoid overlapping and make it easier to apply. Currently, there are too many Laws, Decrees, and Circulars that are no longer in effect guiding current tax policies, but tax authorities and especially enterprises still apply them to solve work, leading to risks in the work of preventing tax losses and complaints from taxpayers. Therefore, when issuing documents guiding tax policies under the Law, it is necessary to clearly stipulate the time of application.
- Build and complete the application system to effectively serve the work of exploiting information to the maximum extent, meeting management requirements. To effectively deploy the tax management information system, it is necessary to build application software programs to serve the work of collecting, analyzing and processing tax management information promptly, quickly and accurately. On that basis, the tax authority deploys unified application systems for reformed tax management such as tax registration, processing of tax declarations and documents, analyzing information according to the level of risk assessment... The application system built by the Tax Department needs to be integrated with the application systems of relevant agencies in the area such as business registration agencies, customs, banks...
- Strengthen effective, easy-to-use, easy-to-look-up tools to support businesses in identifying illegal invoices. Urgently complete the project to issue anti-counterfeit invoice codes to businesses. Build and complete the database of taxpayer information. There should be specific written regulations for businesses that are at high tax risk or have violated the law on invoices, they are not allowed to print or order invoices themselves but must buy invoices from the tax authority.
- Urgently complete the invoice section on the General Department of Taxation's website so that taxpayers can look up information about businesses issuing and using invoices, thereby preventing and limiting the purchase, sale and use of illegal invoices for tax fraud and tax evasion.
- The General Department of Taxation should review the payroll and personnel situation in localities to arrange them more evenly and appropriately.
- Have a timely reward policy for individuals and organizations that perform well in internal control work.
- It is necessary to propagate and promulgate measures requiring consumers to obtain invoices when purchasing goods, in order to limit the situation of businesses selling goods without issuing invoices.
- Deploy and create conditions for enterprises to convert from paper invoices to 100% electronic invoices to optimize their operations. Using electronic invoices not only helps enterprises reduce costs of tax administrative procedure compliance, printing, sending, preserving, and storing costs, facilitate accounting, shorten payment time for sending/receiving invoices, but also minimize the risk of losing invoices in goods trading transactions, avoid the situation where other organizations and individuals take advantage of illegal use of invoices... For tax authorities, using electronic invoices helps the tax sector build a database of invoices, support and serve the work of inspection, examination, tax refund, and analysis of business risks. At the same time, tax authorities and other state agencies do not spend money and time to check invoices, in order to promptly prevent invoices of absconding or missing enterprises, overcome the situation of counterfeiting invoices, create a healthy business environment for enterprises, and promote the development of e-commerce.
- Regularly organize training courses to widely deploy to Tax Departments and Tax Branches on business processes, instructions on using applications, business regulations on issuing processes and criteria for checking VAT declarations at tax authority headquarters using information technology. Provide guidance on project criteria and indexes for selecting tax declarations for inspection at tax authority headquarters. Provide guidance on using risk analysis applications to serve tax inspection and audit planning (TPR) and tax inspection and audit support applications (TTR).
5.3.3. For Tan Uyen Regional Tax Department
- Implement transparently the organization of staff and the rotation of civil servants between teams. This is a very important and necessary task to control risks and negativity in the unit. Good coordination between tax teams: All activities in the implementation of tax collection management tasks must have clear division of authority and tasks, ensuring the principle of non-concurrent holding of positions, and there must be smooth and unified coordination between teams in terms of information sources and work handling directions.
- Recommend to superiors to supplement human resources, restructure the organization in accordance with the regulations of the General Department of Taxation. Regularly organize classes to improve the inspection and supervision skills of internal inspectors and legal appraisers.
- Regularly organize training and fostering to improve professional qualifications, new knowledge and skills in accounting work, information technology skills for civil servants in the entire Tax Department. Periodically, maybe every 2 years, it is necessary to organize examinations and tests on tax knowledge, accounting regime, information technology for all civil servants in the agency to consider and arrange work suitable to the capacity of each civil servant. Equip modern machinery in the information technology system at the unit.
- Apply information technology to invoice management, effectively apply information technology to compare and verify invoices. Strengthen the comparison of purchase and sale invoice lists of enterprises, especially commercial enterprises in the entire tax system.
- Develop a specialized topic for tax refund inspection and examination for enterprises operating in industries identified as having high risks, especially inspection and examination at taxpayers' headquarters. At the same time, strengthen internal inspection and examination work in the industry to improve the effectiveness of tax refund management and limit negative occurrences. Perform well the work of receiving people, resolving complaints and denunciations promptly and in accordance with the law.
- Regularly organize weeks to listen to taxpayers' opinions, in order to grasp taxpayers' thoughts and aspirations and the working attitude of tax officers to have timely measures to prevent tax officers from making things difficult and harassing businesses.
5.4. Limitations and directions for further research
- First limitation: Due to limited research time, the author only surveyed the opinions of 132 civil servants at the Tan Uyen Regional Tax Department and the Tax Department. This only reflects most of the influence of internal factors but cannot fully and accurately reflect the influence of external factors affecting the risk control system in tax refund work at the Tan Uyen Regional Tax Department.
- Second limitation: The survey sample is small, because it is a quantitative study, the larger the sample, the better.
The research results show that 𝑅 2 is 73.7%, proving that the model can only explain 73.7% of the impact on the risk control system in tax refund work at Tan Uyen Tax Department due to the impact of 8 factors: Control Environment, Setting Goals, Identifying Potential Risks, Risk Assessment, Risk Response, Control Activities, Communication Information and Monitoring. The remaining 26.3% affects the risk control system in tax refund work at Tan Uyen Tax Department.
Tan Uyen area is due to the impact of other factors but has not been studied in this topic. Therefore, further research needs to find other factors that affect tax refund work at Tan Uyen area Tax Department.
5.5. Conclusion of chapter 5
In this chapter, the author proposes solutions to solve the objectives of the topic and also the research question of how to improve the effectiveness of KSRR in VAT refund management at the Tan Uyen Regional Tax Department.
Risk control in tax management of the organization needs to be built and perfected on a solid theoretical foundation, and in accordance with the actual situation and management level at the Tan Uyen Tax Department. The author has proposed a group of solutions according to the 8 elements constituting KSRR according to the COSO 2004 report to build a questionnaire for the purpose of building and testing a research model for the tax refund inspection process in particular and the KSRR system in general.
To improve the effectiveness of organizing and implementing KSRR activities as well as perfecting VAT refund activities, the author has proposed a number of recommendations to competent authorities, thereby facilitating the Tan Uyen Regional Tax Department to perfect VAT refund management and risk control activities, bringing about efficiency and limiting errors in the process of performing tasks.
GENERAL CONCLUSION
State tax plays a very important role in the budget revenue structure of each country to serve public activities, is an important tool for income redistribution and macroeconomic regulation of the economy. The task of tax management in general and VAT refund management in particular is a top political task, an important and indispensable job of the Vietnamese tax sector. In Tan Uyen area, the amount of VAT refunded in 2020 was more than 1,300 billion VND, more than half of the annual budget revenue of Tan Uyen Tax Department. Therefore, the issue of VAT refund management from the budget is an urgent and necessary issue. In order to achieve the goals of VAT refund management, the tax sector must be consistent and have solid plans in the budgeting activities, strictly control the process and apply information technology to tax refund management.
The thesis has systematized the theory based on the theory of COSO 2004 and the INTOSAI 1992 report updated with INTOSAI 2013, and combined with the specific characteristics of Binh Duong Tax Industry to systematize in the theory chapter of the thesis, as a scientific theoretical basis.
Tan Uyen Tax Branch is under the Binh Duong Provincial Tax Department, the General Department of Taxation and complies with policies and procedures for risk control in the tax industry. When the risk management system at Tan Uyen Tax Branch is organized and operated effectively, it will contribute positively to tax refund management at the Tax Department. The survey of the current status of the risk management system at Tan Uyen Tax Branch is based on 8 basic elements of the system and the survey and assessment of the current status of tax refund management and the situation of tax refund and tax refund inspection in the period of 2018-2020 helps readers and leaders of Tan Uyen Tax Branch have a general and in-depth view of the theoretical basis of tax refund and tax refund inspection, see what has been done, what has not been done and the reasons for its existence. From there, the author proposes complete solutions to organize and effectively implement risk control of VAT refund management at Tan Uyen Regional Tax Department, perfecting his thesis to meet the requirements of tax management as well as tax refund work of Binh Duong Provincial Tax Department in particular and of the Tax Industry nationwide in the coming time. Proposing solutions to minimize risks in tax refund work in the current period and the following years will contribute to the completion of the reform and modernization of the Tax industry, bringing the Vietnamese economy to gradually integrate and develop, keeping up with the regional and world economy.
REFERENCES
VIETNAMESE
National Assembly (2008). Law No. 13/2008/QH12 Law on Value Added Tax dated June 3, 2008.
Ministry of Finance (2013). Circular No. 219/2013/TT-BTC guiding the implementation of the Law on Value Added Tax and Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value Added Tax issued by the Minister of Finance on December 31, 2013.
Ministry of Finance (2015). Circular No. 204/2015/TT-BTC regulating the application of risk management in tax administration issued by the Minister of Finance on December 21, 2015.
Ministry of Finance (2016). Circular No. 99/2016/TT-BTC guiding the management of VAT refunds issued by the Minister of Finance on June 29, 2016.
General Department of Taxation (2011). Decision No. 905/QD-TCT on promulgating tax refund procedures issued by the Director General of the General Department of Taxation on July 1, 2011.
Ministry of Finance (2018). Decision No. 110/QD-BTC regulating the functions, tasks, powers and organizational structure of district, town, city tax branches and regional tax branches under provincial and municipal tax departments, issued by the Minister of Finance on January 14, 2018.
General Department of Taxation (2019). Decision No. 245/QD-TCT regulating the functions and tasks of the teams under the Tax Department issued by the General Director of the General Department of Taxation on March 25, 2019.
General Department of Taxation (2021). Official dispatch No. 429/TCT-TTKT on high-risk VAT refund issued by the Director General of the General Department of Taxation on February 22, 2021.
Lecture on "Internal Control" by Associate Professor, Dr. Tran Phuoc.
Summary report on tax work from 2018 to 2020 of Tan Uyen Regional Tax Department.
Summary report on tax inspection work from 2018 to 2020 of Tan Uyen Regional Tax Department.
Dinh Phi Ho (2017). Economic research methods and master's thesis writing. Ho Chi Minh City Economic Publishing House.
Nguyen Thi Trang (2017). Perfecting the internal control system in tax inspection at Thu Dau Mot City Tax Department, Master's thesis, Thu Dau Mot University.
Nguyen Thi Thuy Duong (2017). Applying tax risk management: Problems and solutions , Finance Magazine, No. 6, Issue 2 - 2017, pp. 21-22.
Nguyen Thi Thanh Huyen (2015). Elements of internal control system affecting tax collection activities at District 9 Tax Department, Master's thesis, Ho Chi Minh City University of Economics.