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Principles of settlement of state compensation by tax authorities at all levels

Updated at 14/07/2023 - 05:06 pm

On May 25, 05, the General Department of Taxation issued Decision 2023/QD-TCT to disseminate the Regulation on settlement of state compensation at tax authorities at all levels. Thereby, the General Department of Taxation has specific guidance on the scope of compensation liability, the basis for determining compensation liability and the principles of compensation settlement at tax authorities.

Scope of regulation and object of application of the decision #

This Regulation guides tax authorities to settle state compensation; compensation claim settlement procedures; compensation and reimbursement responsibilities at tax offices at all levels.

Subjects of this decision include:

  • General Department of Taxation; Large Corporate Tax Department; Tax Departments of provinces and cities; Tax department;
  • Tax officials of tax authorities at all levels.

Scope of responsibility for state compensation of tax authorities #

According to Decision 657/QD-TCT, the General Department of Taxation stipulates that tax authorities at all levels are responsible for compensating for damage in cases of illegal sanction, specifically as follows:

  • Decision on sanctioning of illegal administrative violations;
  • Apply measures to prevent and ensure the handling of illegal administrative violations;
  • Applying measures to coerce the execution of decisions on sanctioning administrative violations against the law;
  • Applying illegal revenues - expenditures - refunds of taxes, fees and charges; illegal collection of land use levy;
  • Failing to apply or misapply the provisions of the Law on Denunciation of measures to protect whistleblowers upon their request in accordance with the Law on State Compensation Liability (Law on TNBTC);
  • Performing acts prohibited under the Law on Access to Information about intentionally providing false information without correcting and without providing information again;
  • The decision on disciplinary action for dismissal of tax officials falls under the jurisdiction of the head of the tax agency, which is contrary to the law.

The basis for determining the state compensation liability of the tax authorities #

According to the regulations on settlement of compensation, when there are sufficient grounds to determine compensation liability, the tax authority is responsible for making compensation in accordance with the law. The bases for determining specific compensation liability are as follows:

  • Bases for determining illegal acts of tax officials on official duty, causing damage and having corresponding compensation claims according to state regulations;
  • Causing actual damage to objects within the scope of the tax agency's compensation liability;
  • There is a cause-and-effect relationship between the actual damage and the act that caused the damage.

The document used as a basis for a compensation claim is a document that clearly identifies illegal acts that cause damage of a tax official and has taken effect, promulgated by a competent state agency or person in accordance with regulations. .

Principles of settlement of state compensation by tax authorities #

The settlement of claims for damage compensation shall be carried out by the Tax Office on the following principles:

  • Comply with the provisions of the law on compensation liability of the state. Tax offices shall settle compensation claims after having documents as a basis for claiming compensation;
  • Timeliness, equality, publicity, goodwill, honesty and lawfulness; shall be conducted on the basis of reasonable negotiation and agreement between the compensation-settling agency and the compensation claimant in accordance with the provisions of the Law on Foreign Affairs and Trade.
  • A claimant who has requested one of the compensation settlement agencies and has been accepted for settlement by that agency is not allowed to request another competent authority to settle the claim (except for the case in Clause 1 of this Article). Point b, Clause 2 and Clause 52, Article XNUMX of the Law on Natural Resources and Environment).
  • Ensure compliance with claims processing procedures.
  • The tax office only compensates for the damage caused by the tax officer or the tax office if the damage sufferer is also partly at fault for causing the damage.

What is the statute of limitations for claiming compensation? #

The statute of limitations for claiming compensation is 3 years from the date the person with the right to claim compensation receives the document as a basis for claiming compensation, except for the case specified in Clause 2, Article 52 of the Law on TNBTC and the case of request for restoration. honor.

The period does not count towards the statute of limitations for a claim if:

  • There is a force majeure event or an objective obstacle that makes it impossible for the person with the right to claim compensation to exercise the right to claim;
  • Damage sufferers are minors, people who have lost their civil act capacity or have limited civil act capacity, or people who have difficulty in perception and act control without a representative as prescribed by law. at law or the agent has died or cannot continue to be the agent until a new agent is available.

The claimant is obliged to prove the period of time that does not count towards the statutory statute of limitations for claiming.

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