Improve Tax law compliance by enhancing information collection and analysis

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Complete tax compliance management for business households and individualsComplete tax compliance management for business households and individuals
Procedures for import tax incentives for non-domestically produced raw materials and componentsProcedures for import tax incentives for non-domestically produced raw materials and components
Improve Tax law compliance by enhancing information collection and analysis
The information collection from ministries and sectors has helped the Tax industry overcome obstacles in e-commerce tax management.

Over the past time, the General Department of Taxation has implemented many methods for information collection such as collecting information from tax management data of Tax authority; gathering information under coordination regulations between Tax authorities and other agencies and organizations.

In addtion, the Tax industry has collected information with other Tax industry; collected information provided by the press, organizations and individuals; purchased information from the foreign Tax authorities and organizations.

Regarding information collection on risk management from the Tax authority’s data, the Tax industry has converted data management into the centralized management mechanism. Accordingly, tax data is sent from localities to the General Department of Taxation. This information collection is implemented regularly and continuously, creating the basis for risk assessment.

The General Department of Taxation has collected data from information sources in the industry such as tax declaration data, financial reports… to build indicators and criteria for making plans of inspection and examination, classification of Tax refund and invoice. The centralized data analysis has brought high efficiency in tax management such as focusing on inspection and examination of businesses showing signs of risk.

Regarding information collection under the coordination regulations between the Tax agency and outside agencies and organizations, the Tax industry has signed information exchange agreements with outside agencies and organizations.

Accordingly, the Tax industry has signed 11 information exchange agreements with ministries and branches such as: Ministry of Public Security, Vietnam Social Insurance, State Securities Commission, State Bank, General Department of Land Management, Ministry of Industry and Trade, Ministry of Information and Communications, General Statistics Office…

The information collection from outside agencies not only helps the Tax industry reduce administrative procedures but also improve risk and compliance levels of taxpayers; helps tax authorities detect organizations and individuals that generate income but do not fulfill tax registration and declaration or fail declare fully and accurately their tax obligations.

Regarding information collection by purchasing information from sources outside the Tax agency, the General Department of Taxation said that currently, many information providers build information collection systems to provide to agencies and organizations in need. To detect risks leading to tax loss, tax authorities need to collect information from these providers.

The Tax authority has signed many tax agreements with foreign tax authorities to improve the information collection about foreign companies to determine the existence of these companies; and prevent the establishment of bogus companies abroad and misappropriating tax refunds.

According to the General Department of Taxation, the information collection has faced problems.

For example, the collected information currently has been in written document and has not been converted into electronic document. Therefore, the tax agency spends a lot of time to process and upload to the system.

To supplement information sources for tax management and risk analysis, the Tax agency and relevant units need to regularly review regulations to promptly amend and collect e-information.

With the large amount of collected information, the Tax industry needs many officers with data analysis skill. However, the limitations in information collection and analysis skills of a part of officers affect the quality of information, so regular training for the officers is needed.

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