Tax compliance of taxpayers to determine the level of tax compliance; Canadian or Dutch tax authorities determine the level of compliance based on analysis of the current tax debt situation of taxpayers. " To have appropriate tax management strategies for areas with a large number of taxpayers, in addition to classifying taxpayers according to the level of compliance, it is also necessary to classify taxpayers according to the scale of their operations to develop tax management strategies " [5].
Third, strengthen the development and implementation of research activities to predict tax compliance behavior and understand taxpayer needs.
Research activities to predict tax compliance behavior are activities that provide information bases for market segmentation and taxpayer compliance management. Research activities on taxpayer needs aim at the goal of managing the relationship between tax authorities and taxpayers in many countries. Investigation and survey activities on taxpayer behavior and needs conducted annually are important information channels. In addition, there are other information channels such as: meeting and contacting customers, tax agents; organizing dialogues to get opinions from key taxpayer groups or tax agents; ... are also established " to understand the needs, satisfaction, complaints of taxpayers and assess the reliability of taxpayers with tax authorities " [5].
Fourth, create conditions for the inevitable development of tax agents in general and tax service organizations in particular.
This is an important lesson in tax administration for taxpayers in most countries. Taxpayer support through tax agents ensures the accuracy, timeliness and completeness of tax declarations. The development of tax agents in many countries shows that tax agents are an irreplaceable partner of taxpayers and tax authorities. Tax agents overcome the lack of understanding of tax information of taxpayers, helping taxpayers save time completing tax procedures, including tax complaints. Tax agents help reduce the burden of taxpayer support for tax authorities, especially in developing countries, where the human resources providing support services are still low in quality and quantity. Currently,
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One of the lessons from the development of tax agents is the recognition of tax agent consulting activities as one of the important service sectors of society. Therefore, in addition to providing services to taxpayers, tax authorities need to develop direct support services for tax agents such as: establishing a tax agent portal on the tax information network, creating conditions for tax agents to access information about taxpayers, using tools to promote tax agents to operate transparently for the goal of tax fairness.
2.2.2.3. Tax administration law in China
The predecessor of the Chinese Tax Administration Law was the General Regulations on Tax Administration promulgated by the State Council. It contained provisions that discriminated between domestic and foreign investment. After several years of implementing the Regulations, the Tax Administration Law of the People's Republic of China was promulgated in 1992, and was subsequently amended in 1995 and 2001.
In September 2002, the State Council (equivalent to the Government of Vietnam) issued documents guiding the implementation of the Law on Tax Administration. There are more than 20 specific regulations guiding the implementation of the Law on Tax Administration such as: tax registration, tax payment assurance management, tax debt announcement, tax enforcement, arranging banks for tax payment, taxpayer classification....
The implementation of these guidelines has been very effective. Tax arrears have been low, tax evasion has been reduced, and tax collection costs have been low. Tax revenue accounts for about 16.9% of China's GDP.
Below are some notable contents of the Tax Administration Law of the People's Republic of China:
1) On the scope of the Tax Administration Law
This is a procedural law that applies to taxes administered by tax authorities. The tax administration law coexists with specific tax policy laws that regulate each tax.
The subjects participating in the implementation of the Law on Tax Administration include 3 groups: (1) Taxpayers and those who are obliged to pay taxes on their behalf; (2) Tax authorities including 4 levels, central level and 3 local levels; (3) State management sectors and related units.
Agencies such as state agencies managing industry and trade, banks, agencies issuing certificates of goods quality inspection...
Regarding this content, the Law has the following provisions:
- Stipulating the authority of the State Council (Government), the Law assigns the State Council to specifically regulate issues of tax collection, tax suspension, tax exemption, tax reduction, tax rebate, and tax compensation. At the same time, agencies, units, and individuals are strictly prohibited from (have no right to) promulgate legal documents on tax collection, tax suspension, tax exemption, tax reduction, tax rebate, and tax compensation.
- Regulations on the rights and obligations of tax authorities, local People's Governments (People's Committees at all levels) and relevant agencies are clearly defined, in accordance with the functions and tasks of each agency to ensure effective implementation of tax laws. Accordingly, tax collection is the responsibility of tax authorities. The State Tax Department and local tax branches must separately conduct tax collection management based on the scope of tax collection management prescribed by the State Council. In the process of performing tax collection tasks, no unit or individual is allowed to obstruct tax authorities from performing their tasks.
In order for this Law to be effectively implemented, dissemination and propaganda work is also required and tax authorities are obliged to carry out. In addition to having to widely propagate on mass media, tax authorities must also provide free tax consultancy services to taxpayers.
- Regulations on the responsibilities of agencies and organizations: local people's governments at all levels must strengthen leadership or coordination of tax management work in their administrative management areas; assist tax authorities in performing their duties according to the law; relevant sectors and units within their functions and tasks are responsible for assisting and supporting tax authorities in performing their duties according to the law.
- Regulations on the rights and obligations of taxpayers, the Law stipulates that taxpayers have the obligation to withhold and pay taxes according to the provisions of law. To protect the rights of taxpayers, the Law also stipulates that taxpayers have the right to dispute the decisions of tax authorities, have the right to make administrative complaints and lawsuits and request compensation.
request state agencies to compensate if causing damage to taxpayers. In addition, taxpayers can also go to the tax agency to learn about tax laws and the situation related to tax payment procedures.
2) Taxpayer information system
The Chinese tax authorities are implementing the taxpayer window system project . All tax-related information of a taxpayer is stored and exploited in a certain window. Taxpayer information is built from the following sources:
- As declared by the taxpayer.
- Tax authorities self-investigate.
- Relevant agencies provide: Industry and trade management agencies provide information on granting certificates of production and business activities; quality management agencies provide information on business activities of enterprises; banks and credit institutions provide information on opening accounts.
Based on the taxpayer information system, tax authorities evaluate and classify taxpayers according to their history of tax law compliance; and at the same time, take measures to effectively control tax collection.
3) Tax registration
Taxpayers engaged in production and business activities must, within fifteen days from the date of receipt of the business license, submit a tax registration application to the tax authority in the locality where the business activities take place or where the tax liability arises. At the same time, taxpayers must also submit relevant papers and documents as required by the tax authority.
Tax deduction units must register tax deduction with the local tax authority within thirty days from the date of arising tax deduction liability to be granted a tax deduction registration certificate. In case the tax deduction unit has completed the tax registration procedure, the tax authority only needs to add the tax deduction liability content in the tax registration certificate without having to issue a separate tax deduction certificate to that tax deduction unit.
The law also stipulates that in addition to the taxpayer's responsibility to report to the tax authority about the account opened at a bank or credit institution, the bank or credit institution where the taxpayer opens the account is responsible for coordinating and providing support when requested by the tax authority.
4) Tax declaration
There are 4 methods of tax declaration: Direct declaration at the tax office, declaration by post, declaration by electronic network and simple tax declaration.
In case the taxpayer or the tax deducting unit is unable to submit the tax declaration or tax deduction dossier on time due to force majeure, the deadline for submitting the dossier shall be extended. However, after the force majeure situation has ended, the taxpayer or the tax deducting unit must submit a report to the tax authority. The tax authority shall consider and accept the report based on the reasons and force majeure situation of the taxpayer or the tax deducting unit.
Taxpayers are allowed to make adjusted declarations within three years from the date of submission of tax declarations; in special cases, it can be within five years.
In case of under-declaration according to the tax authority's calculation, the taxpayer does not have to pay a fine; in case of under-declaration caused by the taxpayer himself, a fine will be imposed.
5) Pay taxes
Taxpayers pay taxes to the treasury or through banks. Only in remote areas where there are no treasuries or banks will the tax authority directly collect taxes.
Only provincial tax authorities have the authority to grant tax payment extensions. In reality, there are shortcomings: The reasons for requesting extensions at the local level may be 1 to 2 levels lower than the provincial level. Therefore, it is difficult for provincial tax authorities to grasp the actual situation at the local level to make the right decision.
In case of overpayment according to the tax authority's calculation, the taxpayer shall receive interest calculated on the overpaid tax amount. The overpaid tax amount due to the taxpayer's negligence shall not be entitled to interest.
6) Tax debt management
The penalty for late tax payment is 50,000/day. The tax authority has the right to cancel the transfer of assets of the taxpayer if the taxpayer still owes tax to the State; publicly announce the tax debt of the taxpayer; and suspend the individual from going abroad.
There is no provision for debt cancellation for existing taxpayers. Only when the taxpayer dies (for individuals) or becomes bankrupt by law (for legal entities) will the remaining tax debt with no source of income be removed from the tax authority's records.
7) Tax enforcement
Tax authorities mainly use two measures in tax enforcement: (1) blocking accounts to allow money to come in but not to spend it; (2) seizing and auctioning assets to collect taxes.
Provincial tax authorities approve tax enforcement measures; tax administration agencies directly organize tax enforcement. In particularly difficult cases, the police and local authorities participate.
8) Tax audit, tax inspection
During tax inspection and examination, tax authorities have the right to:
- Require taxpayers and persons with withholding obligations to provide documents, proof and relevant materials related to tax payment, withholding and payment on behalf of others;
- Checking the taxpayer's account books, vouchers, reports and relevant documents, checking the books on withheld and paid taxes, collected and paid taxes, vouchers and relevant documents of the person with the obligation to withhold and pay;
- Go to the place of production and business and the place where the taxpayer's goods and materials are stored to inspect the taxpayer's goods and materials or other assets, inspect the business situation related to the person with the obligation to withhold and pay taxes and the amount of tax withheld and paid on behalf of the taxpayer;
- Go to bus stations, train stations, airports, postal enterprises and branches of taxpayers to check invoices, documents and other useful documents.
relating to goods, supplies or other taxable assets that the taxpayer has sent for transportation or sent by post;
- Check the deposit accounts of taxpayers and persons with withholding obligations opened at banks or other credit institutions.
- During the inspection process, if it is discovered that the taxpayer has committed tax evasion and there are clear signs of moving and hiding goods, materials and assets, the tax inspector can use coercive measures to confiscate assets and goods to preserve taxes.
When a tax authority officer is sent to conduct a tax audit, he/she must present a tax audit card and a tax audit notice, and must keep the information confidential for the person being audited. If the tax audit card and tax audit notice have not been presented, the person being audited has the right to refuse the audit.
Documents obtained by the tax authority during inspection and investigation may not be used for purposes other than tax collection.
9) Tax investigation
Tax investigation is an administrative investigation. The results of the investigation conducted by the tax authority are only for administrative handling. If the case must be conducted under criminal law, the criminal investigation agency must conduct an investigation to have grounds for prosecution in court.
When the tax authority conducts a tax audit according to the law, it has the right to investigate relevant units and individuals regarding the relationship between the taxpayer, the person with the obligation to withhold payment, and other parties. “ Relevant units and individuals have the obligation to truthfully provide the tax authority with relevant documents and supporting materials ” [25].
Only provincial tax authorities have tax investigation units, which have officers directly conducting the investigation work. The investigation unit in charge at the central level only directs and coordinates provincial investigation units with each other. When investigating tax law violations, tax authorities can take notes, record audio, video, take photos and restore documents related to the investigation case.
In summary, during the fifteen years of applying the Law on Tax Administration, China has implemented, learned from experience and further improved regulations.
new to suit the reality. The Chinese Tax Administration Law has created a legal basis for taxpayers, tax authorities and relevant parties to comply with tax policies and laws. Taxpayers' awareness has become established. Tax authorities have clear responsibilities and strong enough power to supervise taxpayers. Tax revenue has gradually increased from 14% of GDP to 16% of GDP in recent years.