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| The Hà Nội Tax Department. A draft regulation that would require banks to provide details of customers’ accounts to tax authorities which previously caused controversy has been removed from the latest version of the draft Law on Tax Management. |
HÀ NỘI – A draft regulation that would require banks to provide details of customers’ accounts to tax authorities which has caused controversy has been removed from the latest version of the draft Law on Tax Management.
In a report regarding the draft law submitted to the Prime Minister, the Ministry of Finance said the draft was changed so that banks would only provide account numbers of taxpayers to authorities.
The previous draft stated that commercial banks must provide account information on tax payers, including transactions and account balances, to authorities.
The draft regulation caused controversy as some said it could easily lead to abuse of power and it would be difficult for banks to ensure customers’ information security.
The Việt Nam Chamber of Commerce and Industry said the draft lacked transparency because it did not clarify in what cases and for what purposes tax authorities could ask commercial banks to provide account information.
According to Government Decree 117/2018/NĐ-CP regarding confidentiality about customers’ information at credit institutions and foreign banks which took effect from November 1, 2018, banks would only provide information to organisations with rights to request that information or with customer consent.
In response to the National Assembly’s Finance and Budget Committee that tax debt write-offs should not be given to those suspected of tax evasion or violations of business regulations, the ministry said that write-offs would only be declared for firms that had closed or individuals who had died or were missing. - LV
