Handling tax disputes for enterprises in accordance with law

The resolution of tax disputes is a common issue for enterprises today. The article below sets out the legal provisions on handling tax disputes for enterprises and addresses a number of related concerns, thereby assisting individuals and organizations in safeguarding their lawful rights and interests.

I. Current situation regarding the handling of tax disputes for enterprises

Handling tax disputes for enterprises has significantly increased due to changes in legal policies and digital technologies. Enterprises are advised to use online support channels provided by tax authorities and to participate in periodic dialogue sessions in order to promptly resolve issues at an early stage of dispute, thereby minimizing costs and legal risks.

II. Concept of handling tax disputes for enterprises

1. What is the handling of tax disputes for enterprises?

Pursuant to Clause 1, Article 3 of the Law on Tax Administration 2019, tax is defined as a compulsory payment to the State budget imposed on organizations, households, business households, and individuals in accordance with tax laws.

A tax dispute may be understood as a situation involving conflicts, disagreements, or divergences in viewpoints and interests between taxpayers and tax collectors. 

Handling tax disputes for enterprises refers to the process of resolving conflicts and disagreements between enterprises (taxpayers) and tax administration authorities (tax collectors) in relation to tax obligations, administrative decisions, or administrative acts concerning taxation.

2. Which parties are typically involved in enterprise tax disputes?

Pursuant to Clause 2, Article 2 of the Law on Tax Administration 2019, the parties typically involved in enterprise tax disputes include:

Taxpayers: Enterprises are entities entitled to file complaints or initiate lawsuits when they disagree with administrative decisions (such as tax reassessments or administrative penalties) or administrative acts of competent authorities.

Tax administration authorities:

• Tax authorities, including the General Department of Taxation, Tax Departments, Sub-departments of Taxation, and Regional Sub-departments of Taxation;
• Customs authorities, including the General Department of Customs, Customs Departments, Post-Clearance Audit Departments, and Sub-departments of Customs;
• Tax administration officials, including tax officers and customs officers;
• Other relevant state authorities, organizations, and individuals.

Supporting and related parties:

• Lawyers: Providing legal advice, protecting lawful rights and interests, and representing enterprises throughout the process of working with competent authorities or before courts;
• Tax consulting firms: Assisting enterprises in reviewing documents, explaining figures, and assessing technical risks;
• Persons with related rights and obligations: In certain cases, it may include business partners or other parties related to the enterprise’s tax matters.

In summary, the parties involved in enterprise tax disputes include the aforementioned entities.

3. Common types of tax disputes

Common tax disputes often revolve around significant changes in tax administration policies and procedural requirements. Typical disputes include:

• Procedural disputes: Current tax procedures include tax registration, issuance of tax codes, invoice purchasing and printing, tax declaration and finalization, tax refund procedures, tax exemption and reduction procedures, etc. Errors are unavoidable in the course of implementation, leading to disputes, especially where tax officials create obstacles or fail to facilitate taxpayers, resulting in prolonged procedures and delays.
• Tax imposition disputes: These arise when tax authorities impose tax liabilities. Disputes occur when taxpayers believe that the imposed tax amount is inconsistent with actual circumstances.
• Tax determination disputes: These occur when taxpayers believe that tax authorities or tax officials have incorrectly determined payable tax amounts based on invoices, supporting documents, or accounting records.

Thus, enterprises commonly encounter disputes relating to the above issues in the sector of taxation.

III. Legal provisions on handling tax disputes for enterprises

1. Forms of handling tax disputes

Pursuant to Articles 147 and 148 of the Law on Tax Administration 2019:

• Taxpayers, organizations, and individuals have the right to file complaints with competent authorities against administrative decisions or administrative acts of tax authorities or tax officials where there are grounds to believe that such decisions or acts are unlawful and infringe upon their lawful rights and interests.
• Individuals also have the right to denounce violations of tax laws committed by taxpayers, tax officials, or other organizations and individuals.
• The competence, order, and procedures for resolving complaints and denunciations shall comply with laws on complaints and denunciations.
• The initiation of lawsuits against administrative decisions or acts of tax authorities shall be implemented in accordance with laws on administrative procedures.

Accordingly, enterprises may handle tax disputes through complaints, lawsuits, or denunciations with competent authorities in accordance with applicable laws.

2. What are the legally prescribed procedures and processes for filing complaints in tax disputes?

The procedures and processes for filing complaints in tax disputes, as stipulated in Articles 7, 8, 9 and Sections 2 and 3, Chapter III of the Law on Complaints 2011, are as follows:

- Statute of limitations and form of complaint:

• Statute of limitations: Taxpayers have 90 days to exercise their right to file a complaint from the date of receipt of the administrative decision or from the date they become aware of the administrative act issued by the tax authority.
• Form: Complaints may be made in writing or submitted directly to the competent authority.

- The complaint resolution process generally includes the following steps:

• The tax authority receives the complaint application together with supporting documents and evidence.
• Acceptance: Within the prescribed time limit, the competent person examines the validity of the complaint and issues a written notice of acceptance.
• Verification: The tax authority conducts examination and verification of the complaint contents and may request relevant parties to provide necessary information.
• Dialogue: A direct dialogue is organized between the complainant and the complained-against party to clarify disputed issues (mandatory in certain cases).
• Issuance of Decision: The tax authority issues a decision on complaint resolution and sends the result to the taxpayer.

- Competence for resolution:

• First-time complaint: The head of the tax authority issued the administrative decision or performed the administrative act subject to complaint shall directly handle it.
• Second-time complaint: If the complainant disagrees with the first-time resolution decision, they may file a further complaint with the immediate superior tax authority or initiate a lawsuit before a court.

Accordingly, the procedures and processes for filing complaints in tax disputes are prescribed as above.

3. What benefits does the use of tax dispute handling services bring to enterprises?

The use of tax dispute handling services provides enterprises with significant advantages in tax-related disputes, including:

• Minimization of legal risks: Legal consultants and dispute resolution lawyers possess professional expertise and practice experience, enabling enterprises to apply the law correctly and avoid unnecessary violations.
• Optimization of lawful rights and interests: Consultants assist enterprises in properly preparing documents, thereby avoiding rejection of applications or unnecessary prolongation of cases.
• Savings in time and resources: Enterprises can focus on their core business activities instead of handling complex disputes themselves, ensuring operational stability.
• Timely updates on new regulations: Advisory services help enterprises comply with updated forms, tax policies, and the latest legal procedures relating to complaints and dispute resolution.

It can therefore be seen that the use of tax dispute resolution services offers considerable benefits to enterprises.

IV. Questions related to the handling of tax disputes for enterprises

1. Does the handling of tax disputes affect an enterprise’s production and business operations?

The handling of tax disputes has significant impacts on an enterprise’s operations, specifically:

• Finance: Tax reassessments and sanctions may result in substantial financial losses, affecting cash flow and profitability.
• Operations and management: Enterprises may be subject to inspections and investigations, leading to disruptions and time consumption. Tax-related uncertainties also hinder long-term business planning.
• Reputation and image: It adversely affects the enterprise’s credibility, causing partners and clients to hesitate in investing or cooperating.
• Human resources: It may reduce employee morale, cause internal disunity, and lower productivity.
• Legal aspects: It generates litigation costs, legal fees, and complex procedures, increasing the financial burden.

Thus, the handling of tax disputes negatively affects an enterprise’s production and business operations.

2. What documents and materials should enterprises prepare to protect their rights in tax disputes?

Pursuant to Article 81 of the Law on Administrative Procedures 2015, evidence may be collected from the following sources:

• Readable, audible, and visual documents, and electronic data;
• Physical evidence;
• Statements of involved parties;
• Witness testimonies;
• Expert conclusions;
• On-site inspection records;
• Asset valuation and appraisal results;
• Documents recording legal events or acts prepared by competent persons;
• Notarized or certified documents;
• Other sources as prescribed by law.

Accordingly, enterprises should prepare the following documents:

• Legal documents: Enterprise Registration Certificate, sub-licenses (if any), and internal decisions relating to tax matters;
• Accounting books: General ledger and detailed accounts relevant to the dispute;
• Financial statements and tax returns: Original financial statements, corporate income tax finalization returns, and related monthly/quarterly filings;
• Commercial contracts: Sale and purchase contracts, appendices, and liquidation minutes;
• Invoices: Electronic invoices (authenticated by tax authorities where required);
• Payment documents: Payment orders and bank confirmations;
• Delivery documents: Warehouse receipts, delivery notes, bills of lading;
• Other tax-related documents.

In summary, enterprises must prepare complete documents to safeguard their rights in tax disputes before competent authorities.

3. How long does the tax dispute resolution process typically take in practice?

The duration depends on the resolution method and case complexity:

- Complaint procedures:

• First-time complaint: Pursuant to Article 28 of the Law on Complaints 2011, it does not exceed 30 days from acceptance; up to 45 days for complex cases.
• Second-time complaint: Pursuant to Article 37 of the Law on Complaints 2011, it does not exceed 45 days; up to 60 days for complex cases.

- Administrative litigation procedures: Typically range from 6 months to 1 year depending on case nature and appellate proceedings under Clause 2, Article 16 of the Law on Administrative Procedures 2015. Specifically:

Time limit for trial preparation:

• 04 months from case acceptance for administrative decisions, administrative acts, and dismissal decisions;
• 02 months for complaint resolution decisions in competition cases.

Time limit for opening a hearing: Within 20 days from the issuance of the decision to bring the case to trial; extendable to no more than 30 days for valid reasons under Article 149 of the Law on Administrative Procedures 2015.

Additionally, cases may be suspended or prolonged due to appeals or other practical factors.

In conclusion, the duration of tax dispute resolution varies depending on the chosen method and case complexity.

4. May enterprises authorize lawyers or tax consulting organizations to participate in resolving tax disputes?

Pursuant to Clause 13, Article 55 of the Law on Administrative Procedures 2015, involved parties have the right to defend themselves or engage lawyers or other persons to protect their lawful rights and interests during proceedings.

Additionally, under Point b, Clause 1, Article 12 of the Law on Complaints 2011, complainants have the right to seek legal advice from lawyers or authorize lawyers to file complaints on their behalf.

Accordingly, enterprises are entitled to authorize lawyers or tax consulting organizations to participate in resolving tax disputes.

5. What are the roles of lawyers and tax experts in the process of resolving tax disputes?

In tax disputes, lawyers safeguard legal rights, provide strategic advice, represent clients in proceedings, and prepare legal documents. Tax experts offer specialized knowledge of tax law, analyze financial data, and propose optimal financial solutions. Specifically:

Role of lawyers:

• Legal advisory: Interpreting complex legal provisions, analyzing risks and opportunities, and clarifying rights and obligations.
• Representation and negotiation: Acting on behalf of clients in dealings with tax authorities and related parties, participating in mediation and negotiations.
• Preparation of documents and litigation: Preparing applications, evidence, legal arguments, and representing clients before courts or arbitration.
• Protection of rights: Ensuring fairness and legality throughout the process.

Role of tax experts:

• In-depth analysis: Studying tax regulations, policies, circulars, and decrees relevant to the case.
• Financial-tax assessment: Analyzing financial data and contracts to determine tax obligations and identify lawful tax optimization opportunities.
• Technical solutions: Proposing tax treatment solutions (e.g., invoices, deductible expenses, transfer pricing).
• Preparation of technical evidence: Collecting and presenting specialized tax evidence.  

Accordingly, lawyers and tax experts play a crucial role in tax dispute resolution.

V. Why should enterprises seek legal advice from NPLaw for tax dispute matters?

The above provides guidance on handling tax disputes for enterprises as presented by NPLaw. With a team of experienced lawyers and legal professionals, NPLaw delivers reputable and professional legal services, ensuring optimal protection of clients’ lawful rights and interests. For legal assistance, please contact NPLaw for consultation.

The information provided herein is for reference purposes only. For detailed advice on specific cases, please contact NPLaw Firm directly.