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The Important Position And The Level Of Impact Of Risk Control In VAT Refund Management Of Tan Uyen Regional Tax Department

There are still certain shortcomings...

Information and communication

- The function of warning subjects who have been detected as committing fraud or tax evasion on the tax management application system of the tax industry TMS has not been working effectively, this review is mainly done manually.

- Information communication throughout the system is not timely, guidance documents on tax management and VAT policies are mostly self-searched on the internet, without centralized information sources and dissemination to staff.

- Communication of policies and guidelines to businesses is not effective and timely, leading to low compliance by businesses.

4.6. Conclusion of chapter 4

In chapter 4, the author focuses on assessing the current status of risk management in VAT refund management at the KV TU CCT based on the analysis of the core components of the risk management system, which are: Identification of potential risks, Control environment, Control activities, Risk response, Risk assessment, Monitoring activities, Setting goals and Communication information. The study focuses on analyzing secondary data from the reports of the KV TU CCT and primary data from surveys of individuals who are managers and staff working inside the unit with knowledge of risk management. The author uses descriptive statistics, analysis, comparison, synthesis, deduction and calculation by percentage method on Microsoft Office Excel and SPSS 26.0 software to conduct statistics and evaluate the level of factors for risk control in VAT refund work at the KV TU CCT.

The quantitative research results determine the important position and level of factors affecting risk control in VAT refund management:

Important position

Factor

Level of influence

1

Identify potential risks

15.41%

2

Control environment

15.10%

3

Control activities

13.62%

4

Risk response

12.68%

5

Risk Assessment

12.13%

6

Monitoring activities

11.82%

7

Set goals

10.56%

8

Media information

8.68%


Add

100%

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The Important Position And The Level Of Impact Of Risk Control In VAT Refund Management Of Tan Uyen Regional Tax Department

From the above results, the thesis makes comments on the limitations and causes of existence, and this is the scientific basis for the author to propose specific solutions to improve the HTKSRR presented in chapter 5.

CHAPTER 5: CONCLUSION - SOLUTIONS AND RECOMMENDATIONS

5.1. Conclusion

The qualitative results have shown the current status of risk control in VAT refund management at Tan Uyen Regional Tax Department, and combined with:

The quantitative research results determine the important position and level of factors affecting risk control in VAT refund management of Tan Uyen Regional Tax Department as shown in Table 5.1:

Table 5.1: Important position and level of impact of risk control in VAT refund management of Tan Uyen Regional Tax Department


Important position

weight

Factor

Level of influence

1

Identify potential risks

15.41%

2

Control environment

15.10%

3

Control activities

13.62%

4

Risk response

12.68%

5

Risk Assessment

12.13%

6

Monitoring activities

11.82%

7

Set goals

10.56%

8

Media information

8.68%


Add

100%

Source: Author calculated from the results of the regression coefficient table

From the above results, the thesis proposes some implications and specific solutions presented in section 5.2 according to the impact level from high to low in Table 5.1.

5.2. Solutions to improve risk control in VAT refund management at Tan Uyen Regional Tax Department

5.2.1. On Identifying Potential Risks

In terms of potential risk identification, there are often many contents to consider. At the CCT KV TU level, a complete solution for potential risk identification is expressed through the following basic contents:

- Risk identification analysis: Based on the characteristics of the tax refund process, tax authorities can identify risks through the following techniques:

+ Provide training on specialized topics and participate in seminars on specialized content on tax management and supervision, especially in-depth analysis of high-risk businesses, absconding businesses, and businesses that frequently change locations to avoid violations.

+ Focus on exploiting and analyzing tax industry data on TPR risk analysis software, creating a list of selected risky businesses according to the principle

Prioritize businesses with high risk scores and businesses operating in specific industries and professions to improve the efficiency of tax refund inspections, helping to shorten the time and effort for inspections.

+ List possible risks (risks that have occurred in the past as well as risks that have not yet occurred) from internal and external factors and combine with the application of industry risk analysis, thereby building and perfecting risk management procedures suitable to the actual situation.

+ Conduct discussions and exchange of opinions among tax teams to analyze the impacts of risks and timely solutions.

- The human resource management department needs to identify risks related to personnel fluctuations as well as the professional qualifications of civil servants; It is necessary to monitor and review the level of work completion of civil servants, thereby allocating personnel in accordance with the organizational structure of the unit. Review the professional capacity of some officers in other departments to supplement the force for officers doing tax refund and inspection work in the direction of specialization and in-depth expertise in each job function and specific tasks in accordance with the modern tax management model.

5.2.2. About the Control Environment

In terms of control environment factors, at the CCT KV TU level, the complete solution for control environment is shown through the following basic contents:

- Develop an ethical standard and appropriate code of conduct for tax officials . Encourage and motivate officials to promote their creativity and boldly innovate their working style towards serving taxpayers as their operational goal. When performing official duties, tax officials must demonstrate proper conduct, a cheerful expression to create a comfortable, friendly, approachable, and fair and equal attitude to guide taxpayers. Regularly inspect and supervise the implementation of regulations on ethical standards and codes of conduct for tax officials. Thereby promptly rewarding and encouraging good examples and good deeds as well as correcting, criticizing and strictly handling violations.

- Request Tax Authorities at all levels to coordinate to conduct verification and comparison of the quantity of goods purchased and sold; inspect and examine units that purchase and sell goods and services with enterprises at risk of VAT refund or when there is a written notice or request to verify the source of goods (enterprises F1, F2 or F3... if any) (Appendix 9).

- Define authority and responsibility for each department ; The manager of the unit needs to clearly define authority and responsibility for each department to help achieve better work efficiency and at the same time help the departments to be more responsible for the work assigned to them, avoiding the situation of shifting responsibility between departments. At the same time, each department only performs the right work within its authority, helping the process of rotating work between departments to be easy and

more convenient. Divide responsibilities, ensure the rule of non-concurrent holding, do not let one person handle all aspects of a job but must divide it among many people, avoid fraud and errors. In addition, the leadership is also very easy in the process of identifying, finding the cause of risks and having timely handling directions. Thus, it can be seen that clearly dividing the authority and responsibility for departments will create a professional working environment, minimize operational risks, identify and control risks more effectively and bring higher operational efficiency to the organization.

- The agency's leadership needs to review and adjust the criteria for evaluating staff: The evaluation must be clear and specific to create fairness, thereby creating consensus when being evaluated. Correctly evaluating capacity and having a timely reward system will create conditions for staff to perform well their tasks for the agency.

5.2.3. On Control Activities

Similar to the Control Environment factor, the author offers a number of solutions to improve control activities for the HTKSRR in tax refunds, including:

- Regularly rotate work, rotate work of civil servants in the unit periodically and suddenly: To avoid dependence, boredom in work due to having to work too long in one position. And it also limits negative risks in tax refund settlement work. This is a very serious risk that we often forget or underestimate when performing rotation and rotation work. When we do this work well, it will bring certain effects such as: Civil servants have a lot of knowledge about professional expertise to serve the work with increasingly high requirements; Create good relationships with colleagues and especially limit the negativity that can occur at work.

- Division of responsibilities to each department: Organizing division of responsibilities to each department and individual is necessary because when we assign the right person, the right job, the right expertise, it not only helps to maximize the ability of each individual so that the work can be carried out smoothly and quickly, but also helps individuals to raise their sense of responsibility for their work and thereby have comments and correct assessments of the capacity of each individual, thereby promptly organizing rewards for individuals who complete their tasks well or taking disciplinary measures for individuals who make mistakes. (Appendix 10)

- Cross-checking between departments related to tax refund work, ensuring the non-concurrent rule to avoid fraud and errors : Checking tax payment obligations, reconciling tax debts is done independently from the tax refund settlement department and taxpayers; Tax refund dossier settlement officers need to proactively determine the tax debt status of taxpayers and contact the Debt Management & Tax Enforcement Department to carry out procedures to get tax debt confirmation results; Tax refund appraisal and supervision officers base on the tax debt confirmation result slip and information on the tax management application of the tax industry as the basis for advising on decisions.

tax refund as prescribed.

- Evaluate the results of tax refund settlement and file appraisal of assigned staff : Develop and apply a set of criteria for reviewing VAT refund dossiers for export cases. Criteria for reviewing the work of classifying, settling, appraising and monitoring tax refund dossiers. (Appendix 11)

5.2.4. On Risk Response.

- Issue guidelines on file circulation and implementation of VAT refund settlement . This guideline applies to taxpayers with tax refund request dossiers in Tan Uyen area, and departments receiving and handling appraisal and supervision of tax authorities. (Appendix 10)

- Strengthen the inspection of invoices and documents in tax declaration: Invoice verification is a very important task in the tax refund management process. Verifying newly-emerged units aims to prevent the purchase and sale of invoices by units that are not actually doing business. Through the tax refund verification, it also contributes positively to the recovery of tax refunds, preventing criminal organizations and invoice trading lines. Building a database of invoices for comparison to improve invoice management, tax declaration management and raise questions about invoices, actively supporting tax refunds, inspections and audits. On the basis of creating "invoice comparison" software based on data such as: Data on invoice issuance notices, monthly and quarterly invoice usage reports; Data on illegal invoices, invoices that are no longer valid (invoices of dissolved or bankrupt enterprises, etc.); Data from other sources (Police, Customs...) will support tax officers in looking up business invoice information, promptly meeting the professional needs of the industry.

- Punishing tax officers who collude with tax evasion by enterprises: Risk response will be extremely difficult if there are officers who collude with tax evasion by enterprises. It will greatly affect the process of appraisal and implementation of tax refund. In addition, the level of handling violations for enterprises has not met practical needs, the level of fines is too limited and not deterrent enough. In particular, enterprises that collude with corrupt tax officers will have more difficulty in forcing enterprises to fulfill their tax obligations and may cause loss of revenue to the State. Therefore, tax departments in general and Tan Uyen tax department in particular need to rebuild a scale for handling violations of enterprises that is close to reality, ensuring the serious implementation of tax obligations. Particularly for tax officers with the above behaviors, the Tax Department should also have solutions to control such behaviors as much as possible, such as: Building a strong handling framework, implementing policies to require compensation for losses... To increase deterrence and contribute to improving professional ethics for tax officers.

5.2.5. About Risk Assessment

The author proposes solutions to improve risk assessment factors for the risk management system at the KV TU CCT, including the following main contents:

- Monthly, based on the results of tax refund inspection and examination, the leaders of the Tax Department hold meetings to review the aspects that need to be promoted and the shortcomings that need to be overcome , especially pointing out common violations, tax evasion tricks of taxpayers and experiences in detecting violations of taxpayers so that tax refund inspection and examination officers can learn from them.

- Improve the capacity and professional expertise of tax officials: To recognize and assess risks occurring in tax refund management and tax refund inspection and examination, it is required that officials and civil servants in charge of tax declaration management, tax inspection and examination, tax debt management and tax refund supervision and control must have good professional qualifications, capacity, experience and in-depth knowledge. To effectively solve this problem, it is necessary to organize training for 100% of relevant tax officials when tax legal documents change, new regulations and procedures are applied. Send officials to attend specialized training courses to improve tax refund inspection skills, communication skills, and leadership and management skills for leading officials to recognize, assess and promptly deal with risks at enterprises as well as in the work of reviewing tax declaration dossiers.

- Advise the Tax Department to periodically open classes to test, evaluate and assess professional qualifications to adjust human resources to suit each job position. At the same time, regularly open specialized training classes on professional skills, tax inspection skills, and computer skills to promptly supplement knowledge to meet the requirements of tax management tasks in the new situation.

- Identified risks are communicated to functional departments: When risks have been detected and identified but are not communicated or not communicated to functional departments for timely handling, the detection of those risks is meaningless or at least the results are not as expected. Therefore, when risks are detected, they need to be promptly communicated to functional departments widely through the internal paper document system or email and need to ensure the reliability of the information to have the most optimal risk resolution direction.

5.2.6. On Supervision

For CCT KV TU, the solution to perfect this factor should be shown through the following specific contents:

- Increase resources for the Internal Audit and Legal Review Department . At the same time, regularly organize training courses to improve professional expertise in inspection and auditing for the department to detect errors and improve monitoring effectiveness.

- In order for the risk management system in the agency to be effective, the Board of Directors must regularly monitor and evaluate the risk management system, detect uncontrolled risks or risks that have been detected but the control measures are not really effective. It is necessary to increase surprise inspections to detect violations, thereby helping the Board of Directors to propose appropriate corrective and handling measures. It is necessary to organize surprise internal inspections and audits on the principle of ensuring information confidentiality in the form of thematic inspections, according to the nature of the work to detect and handle civil servants who have a coping mindset and conceal their violations.

- Develop a periodic internal inspection and audit plan: Developing a periodic internal inspection and audit plan, which can be every 2 months or 6 months, is extremely necessary and important because this is one of the measures that can promptly detect and prevent risks of errors in the performance of tax officials' work.

- Control the process of performing tasks of civil servants in information processing. Reports submitted to the Board of Directors are still not guaranteed to be complete and honest. There needs to be periodic control reports, from which the Board of Directors can compare and contrast to direct more synchronous, consistent and effective implementation.

- Separate the internal inspection department into an independent department. If the internal inspection department wants to control objectively, it must separate the internal inspection department into an independent department and be responsible only to the higher level of internal inspection. Specifically, the Sub-department level is responsible to the Tax Department, the Department level is responsible to the General Department of Taxation, the General Department of Taxation is responsible to the Ministry of Finance, and internal inspection is not a department under the management of the head of the agency where he/she is working. Thus, internal inspection work can be carried out in a public-private and objective manner.

5.2.7. On Setting Goals

For CCT KV TU, the solution to perfect this factor should be shown through the following specific contents:

- Determine the unit's goals and communicate them to civil servants through specific documents, set goals for tax teams and set specific goals. Every month, the unit checks the ability to complete the goals of each team to review the ability to complete tax management of the entire unit. Thoroughly convey the tax refund management goals to each civil servant assigned to the job: Ensure tax refunds are made to the right subjects and cases, determine the amount of tax refunded according to regulations, promptly detect and prevent tax errors and fraud.

- Directing resolutely and seriously in the work of entering data of monthly tax refund inspection results into the application, to promptly have data to create a basis for tax refund inspection work . Assigning data entry, control, and processing on the TTR application software to each inspection and examination team, each civil servant under the

Tax Department. There must be a focal point to monitor, urge, inspect, and ensure the timely and accurate entry of inspection data in accordance with the provisions of Article 13 of the Regulations on data processing control on the tax management application system (issued with Decision No. 2018/QD-TCT dated December 12, 2018 of the General Director of the General Department of Taxation) to avoid having to reopen the data adjustment. Data entry into the application software associated with monthly and quarterly emulation assessments must be strictly implemented, and discipline must be strengthened to ensure completeness, accuracy, and timeliness. For cases of slow, late entry with repeated errors, appropriate disciplinary action is recommended.

- Monitor and evaluate the implementation of the application for the supervision of inspection teams and tax refund checks. Urge and direct inspection teams to analyze VAT declarations and conduct VAT declaration checks at tax authority headquarters in accordance with the correct procedures.

- The implementation of VAT refund inspection and examination is carried out in accordance with the order and procedures prescribed by law on inspection and examination . Proactively review cases with high risks of VAT refund according to the signs that have been directed; At the same time, publicize information about companies violating tax laws, companies that illegally buy and sell invoices to taxpayers to promptly prevent and handle similar cases, avoiding loss of state budget revenue.

5.2.8. About Information and Communication

If there are appropriate solutions for information and communication, it will contribute to improving the work of KSRR and increasing the effectiveness of tax refund management for the unit. Regarding information and communication work, the author offers a complete solution expressed through some specific contents as follows:

- Implement the construction of a data synthesis mechanism from specialized databases to ensure connectivity and integration of all data streams of the tax sector and related ministries and sectors . Coordinate with relevant units to conduct inspections to prevent commercial fraud and price fraud, thereby detecting, preventing and strictly handling violations of the law, especially the act of buying, selling invoices and using illegal invoices.

- Regularly organize training sessions and disseminate tax policies and laws to businesses: Doing this well will help businesses regularly grasp tax policies to strictly comply with tax laws in their businesses. To do this, it requires each tax officer to always regularly grasp and understand tax policies and have communication skills to effectively convey information about tax policies and regimes to businesses.

- Improve the application of information technology to serve tax refund management: The team of civil servants in charge of information technology promptly updates the application upgrades of the General Department of Taxation according to new tax policy changes, as well as procedures.

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