Tax imposition cases

Tax imposition is tax authorities shall determine the amount of tax payable by the taxpayer, instead of based on the accounting records, documents and books that have already been declared.

Tax shall be imposed on the basis of tax administration rules, tax calculation methods and bases specified by tax laws.

Summarizing three main violations will be impose a tax as follows:

The first: Violation in tax administration rules:

1. Fails to apply for taxpayer registration, fails to declare tax, fails to provide supplementary tax documents at the request of the tax authority; Fails to declare values of related-party transactions or fails to provide information about enterprises having related-party transactions in accordance with tax administration regulations.
2. Fails to comply with the tax inspection, tax audit decision, or the taxpayer fails to explain or fails to punctually explain the determination of tax obligations as prescribed by law.
3. Is suspected absconding or liquidating assets to avoid tax obligations.

The second: Violation in tax bases

1. Declare tax or submit supplementary tax documents are not fully and truthfully as the basis for determination of tax payable.
2. Fails to provide or truthfully and accurately provide information in accounting books as the basis for determination of tax obligations.
3. Fails to present the accounting books, invoices and necessary documents relevant to the determination of tax payable.

The third: Violation in records, documents and tax calculation methods:

1. Buys, exchanges goods, services using illegal invoices.
2. The declarant declares tax according to illegal documents.
3. Buying, selling, exchanging and recording values of goods that are not according to the normal transaction value in the market. Conducts misleading or false transactions to reduce tax obligation.

ILLEGAL USE OF INVOICES AND ILLEGAL INVOICES

AS auditing has reviewed 3 main violations that company are imposed a tax. So on what basis does the tax authority determine the amount of tax to be paid?

The following are the bases to impose a tax:

1. The database of the tax authorities and commercial database that tax authorities accept.
2. Comparison between the tax payable by providers of the same goods or services on the same scale in the same area or in another area if such similar providers are not available in the same area.
3. The ratio of tax on revenue in the corresponding field, industry according to tax laws, or inspection results of competent authority or court judgment.

To sum up, it can be said that, tax imposition is an effective tool for the State to bind the responsibility of the taxpayer, have to fulfill the tax obligations. The main purpose is that the state budget is not lost.

Hopefully, with the knowledge we just shared, it has helped everyone to have an overview of tax imposition cases.