To solve the problem of tax disputes, we should firstly understand what is the concept of tax disputes? How is the methods to resolve? Dragon Law Firm with professional lawyers specializing in company tax will provide the best legal services in taxation disputes. For further information, please contact to Dragon Law’s hotline 1900.599.979 to be answered.
I. Concept of Tax Dispute
Tax disputes should be understood as a contradiction or conflict of interests between the parties to the tax law relationship, or legal status of the relations between taxpayers and tax collectors, in which the parties express the objective disagreements, conflicts, conflict of wills, legitimate rights and interests by complaints or lawsuits in accordance with laws.
Difference between tax dispute and others based on the following characteristics:
1. Subject of Tax Dispute
The subject of tax legal relations including taxpayers and tax collectors. Tax collector are the tax administration agencies and the tax officials. Taxpayers are organizations and individuals with their tax obligations to the State. The two parties raise the tax dispute when their rights and interests conflict with each other. When taxpayers discover that they are harmed by wrong administrative decisions, administrative acts on taxes by the tax authorities, tax officials, they may complain directly to tax decisions or persons who perform such acts.
Unlike in the contract dispute, the complainant, may exercise the right to sue to tax administrative decisions, is just tax payers. Tax administration agencies represent to the State to use State power in order to carry out their duties, then they are not considered as complainant in disputes taxation. As for contract disputes, disputes can occur when one of the two sides see their rights abused, they are equally subject to legal status. When disputes occur, both parties have the right to complain to the third party to request for solving the disputes in the court, arbitration or negotiation together.
2. Object of Tax Dispute
The main object of the dispute is the legitimate rights and interests of taxpayers. The legitimate rights and interests have been specified in the Tax Administration Act 2006. When those rights are encroached upon by the tax authorities, officials, the taxpayer has the right to complain on this issue. On the other hand, the object of the tax dispute was related to benefits or the amount of the tax amount of tax violations. The tax amount can be determined by the declaration method or tax assessment. When authorities determine the amount of tax than the actual payable tax or fines for violations do not correct, disputes will arise if the taxpayer discovers violations.
This is different from a dispute over a contract, the object of the contract disputes are content that the two sides agreed, is specified in the contract, rather than the content which the law has prescribed in the tax dispute.
3. Legal Basis to Tax Disputes
The legal basis is the tax laws and other legal documents related complaint and denunciation laws and ordinances on the procedure for resolving administrative cases have been amended.
Unlike contract disputes, tax disputes be settled only in accordance with administrative procedures or court proceedings, the parties do not have the right to agree on a private mechanism to solve.
4. Nature of Tax Dispute
Tax dispute is a kind of administrative disputes, in which the object of the right to appeal the administrative decisions and administrative acts on taxes. It can be considered tax disputes of the type of administrative dispute because of the following reasons:
a. Tax disputes arising between the tax authorities and officials with the other organizations and individuals in administrative decisions related to the field of taxation. This dispute arises from an administrative relations, which is the relationship between tax collectors and taxpayers - the subject of legal status completely not equal.
b. The administrative decision, the administrative action by the tax authorities, officers and employees of the tax authorities to bring the full features of an administrative decision, administrative acts in general, although there are some peculiarities. However, just as the administrative decisions and administrative acts in general, administrative decisions and administrative acts by the tax authorities on tax will be applied immediately and without delay.
c. The tax disputes are resolved under the two mechanism are administrative complaints and proceedings in court.
Thus, the tax dispute is kind of typical administrative disputes and quite unique compared to other disputes.
II. Classification of Tax Disputes
Currently, there are several criteria to classify the tax dispute, however, based on the collection and payment by the subject, the subject of a dispute in relation to the tax law, can classify the tax dispute on procedures and amount of tax collection.
1. Dispute on Tax Procedure
Tax procedures now include: tax registration procedures, tax grant codes and procedures for purchasing and printing invoice, tax declaration, tax settlement, tax refund, tax exemption ... The dispute can easily occur when the tax officials do not support and make difficulty for taxpayers in tax procedure implementation. Moreover, the administrative procedures of the current tax although there have been many reforms are still some limitations. Common types of tax dispute occur when taxpayers register for tax declarations, apply for tax exemption or tax refund.
2. Dispute on Amount of Tax Collection
Disputes on the amount of tax collection can be understood as contradiction, disagreement occurred between taxpayers and tax authorities and tax officials for the amount of payable tax. This dispute can be a dispute about tax assessment or tax determination.
a. Disputes on tax assessment: A dispute arose when the competent tax authority to determine tax or customs authorities to determine tax for exported and imported goods. Disputes occur when taxpayers that the competent authority has scheduled tax assessment of tax they have to pay does not match the reality.
b. Disputes on the tax determination: The dispute occurred when the taxpayer consider that tax authorities and tax officials identified the wrong amount of tax they have to pay on the basis of invoices, bookkeeping.
In addition, based on the subject may be classified tax disputes between individuals and the tax authorities and disputes between organizations with tax authorities. These organizations are often the enterprise with business activities are subject to tax, related to the import and export tax, value added tax, corporate income tax and other taxes.
III. Principle of Tax Dispute Resolution
In essence, the tax dispute is a form of administrative disputes, thus the rules of administrative dispute resolution is also the basis for the resolution of tax disputes. However, in the process of applying these principles, the State agency as tax offices, courts pay attention to the peculiarities of the tax field to apply an appropriate way.
1. Respect to Self-Defense Rights of Taxpayers
Self-defense rights of taxpayers to be understood as the right to protect themselves before the abuse of others. Compared with the competent authorities, taxpayers may not use State power, they are subject to the management and are controlled by State management subjects. So, taxpayers are "vulnerable" than the competent authorities. So if there is a violation of law to affect the rights and interests of taxpayers, they have the right of self-defense to complain through the relevant authorities to ensure the legal rights stipulated by the laws.
2. Respect the Laws
Respect to the law is in fact guaranteed the socialist legislation in the process of settling tax disputes.
In the process of settling tax disputes, the State agencies to use the law as an important means to ensure the effectiveness of their duties. This content is shown on the following aspects:
a. Strictly respect the rules of law on tax disputes, abusive power, violations with the obligations. The rights and interests of organizations and individuals in the process of dispute resolution must be to ensure the implementation.
b. Inspect and examine the implementation of the law during the tax dispute resolution must be done strictly in accordance with the provisions of the law to prevent and detect in time any violation.
c. Promptly handle the violations in the process of settling tax disputes according to law against any organization or individual personally.
3. Respect for Taxpayers’ Legitimate Rights and Interests
In tax legal relations, the implementation of tax obligations, taxpayers are entitled to tax laws. These are rights that State for the taxpayers are entitled on the basis of tax law relations as well as to ensure the efficiency of the tax collection process, ensuring the role of taxation as a tool to regulate economy to create social justice.
Expression of this principle is to ensure that taxpayers are made lodge complaints and lawsuits. In the process of dispute resolution, if a law stipulated that there are many different interpretations must be interpreted and applied in favor of the taxpayer ...
It can be said, in relation to tax law, taxpayers are weaker party, so when disputes occur, it should be settled thoroughly in compliance with the above principles. So. It can be ensured to the legal rights for taxpayers and social justice.
IV. Method for Tax Disputes
Currently, the settlement of tax disputes in Vietnam follow the method of many different ways that first priority is resolved by negotiation or conciliation between the parties, if the dispute cannot settled will bring to the court. Namely, there is resolution for tax complaints and settlement of tax administrative cases.
1. Tax Complaints
The complaint and settlement to complaints of tax disputes between taxpayers and tax authorities shall comply with the provisions of Law on Complaints 2011 and Law on Denunciations 2011. Under this mechanism, the parties are required to comply with the procedures stipulated in the law and are not allowed to agree to change any procedures.
a. Objects of complaint is the administrative decision, tax administrative act of the tax authorities. Under Article 2 of Law on Complaints 2011, administrative decision means “a document which is issued by a state administrative agency or a competent person in such agency to decide on a specific issue in state administration management activities and is applied once to one or several specific subjects.” and administrative act means “an act of a state administrative agency or a competent person in such agency of performing or failing to perform a task or official duty as prescribed by law.”.
b. Complainant exercise their right to complain to the administrative decisions, administrative actions that they believe is wrong. The complained subject means a state administrative agency or a competent person in this agency that has issued an administrative decision or committed an administrative act which is complained.
c. Tax complaint procedure has the first claim and subsequent claim. If the complainant disagrees with the decision to settle complaints for the first time, they can choose to further complaints or lawsuits at the competent court.
2. Complaint Against Tax Administrative Case at Court
Like the complaints about administrative decisions, administrative acts, make the lawsuit in court also as a way to resolve tax disputes. However, this procedure is much more complex than a complaint, with the participation of many subjects and the relevant persons. Proceeding activities has the following characteristics:
a. Subject exercising their right to sue is the individual, organization see that their rights are infringed by administrative decisions, administrative acts of competent State bodies. In the proceedings, they have to show the evidence to prove the mistakes of the entities making decisions and administrative acts.
b. Object of lawsuits are administrative decisions, administrative acts of officials or State administrative agencies. However, unlike with objects in resolving administrative complaints on tax, administrative decisions or administrative acts being tried in administrative courts is the kind of administrative decisions and administrative acts of tax was solved firstly at the tax office.
c. The subject of proceedings resolution is the court, namely the administrative court. The court will proceed to resolve the administrative case on taxes if the lawsuit meet cash pre-proceedings under the settlement jurisdiction of the court.
Thus, complaint resolution and resolution to administrative cases are two basic methods to settle the tax dispute. Instead of sending a complaint to the tax authorities, taxpayers shall submit their complaint to the competent People’s Court. Time limit for dispute settlement at administrative courts also last longer than the resolution of complaints. Cost for the settlement in court is also more expensive.
Therefore, within the specific conditions, the taxpayer should choose appropriate mode of settlement, avoiding resolution period is prolonged which results are not achieved, their legitimate rights and interests may be affected. Dragon Law Firm with high experience lawyers and legal specialists in tax dispute resolutions will support our Clients with best legal services. Please feel free to contact us at:
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