La nguyenquanghung sum

PREAMBLE The necessity of the research topic Along with the development of Vietnamese economy, the number of taxpayers in Vietnam is increasing and hence the issues related to the compliance with tax regulation are becoming more and more complicated In the situation that the resources for tax regulation activities are limited and not satisfied the actual requirements so the implementation of tax authorities for detecting, treating and deterring tax fraud are facing bigger and bigger challenges Starting from the role of tax audit in the fighting against tax fraud, Vietnam's tax authorities has been continuing to increase the resources for this activity By concentrating and strengthening the tax audit activities in Vietnam, the tax audit has achieved certain results but still had many shortcomings as well The Vietnamese tax authorities can find out a suggestion to overcome these limitations from the result of research on tax audit, especially the research on the factors affecting directly tax audit However, up to now, there isn’t any research which analyze and evaluate the overall impact of relevant factors on tax audit in Vietnam (results of tax audit, the consensus of taxpayers with the audit conclusions and the disseminated effect of tax audit ), while the research result on these issues is one of important suggestions and recommendations for the tax authorities and authorized State agencies in order to propose a completed system of solutions for improving tax audit in Vietnam in a feasible, effective and scientific manner and ensuring the fulfillment of the most important objectives of tax audit in Vietnam On the other hand, the results of quantitative research will indicate the impact level of each factor on the tax audit in Vietnam It is also the basis of priority or exchange in each decision to achieve the highest last result when in fact, it is difficult to implement simultaneous measures to impact all factors due to limited resources In this context, the topic "Improving tax audit activities in Vietnam" with both theoretical and practical significance has been selected for research Objectives of the research The overall objective of the research is a comprehensive and thorough explanation of factors affecting the tax audit in Vietnam based on implementation of the following specific objectives: (1) Review of factors affecting the results of tax audit directly; (2) Study on the direct impact of factors on the consensus of taxpayers with tax audit conclusions; (3) Study on the disseminated effects of audit results, the consensus of taxpayers with tax authorities and society Research questions Four (04) research questions have been raised in studying process: (1) Which factors affect the results of tax audits (in terms of detecting and dealing with tax law violations); (2) What is the spreading effect of the taxpayers' consent to tax conclusions? (3) Which factor is the spreading effect of the results of tax audits on tax authorities, taxpayers and society? (4) Which factors impact the consensus of the taxpayer with the conclusion of the tax authorities? Subjects and scope of research * Research subjects: The thesis focuses on audit activities (including inspection at the taxpayers’ office), which are conducted by tax authorities with taxpayers * Scope of the research: The thesis focuses on theoretical issues related to tax audit activities as well as the factors affecting the results of tax audit, factors impacting the consensus of taxpayers with inspection conclusion at the time of the survey (2015) Research Methodology * Qualitative research method: Using expert methods through interviews, direct communication with tax officials, tax consultants accountants - auditors and leaders of accounting and finance department of enterprises to collect opinions on tax audit activities in Vietnam Research has used statistics through data collection, available data synthesis; processing data collected through surveys, interviews of auditors and enterprises; make charts, draw graphs, charts for easy comparation and evaluation the content of research * Quantitative Research Methodology: Used to test and identify factors affecting the value, reliability and relevance of scales, test models and hypotheses, determine the impact of factors affecting tax audit activities (results of tax audit, the consensus of taxpayers) and spreading effects on tax authorities, taxpayers and society The scientific and practical significance * Scientific significance: The thesis contributes to supplement and improve the theoretical foundation on tax audit; Clarify the factors affecting the tax audit activities (results of tax audit activities on the aspect of detecting and handling violations, the consensus of the taxpayers with tax audit conclusions, the spreading effect of the tax audit results as well as the consensus of the taxpayers with the conclusion of the tax audit on the compliance of the taxpayers, the image and management capacity of the tax authorities and the ability to prevent tax law violations as well as increasing the social support for tax authorities) * Practical implication: The thesis analyzes the current situation of tax audit in Vietnam and assesses the advantages, limitations as well as clarifies the related reasons Based on these analyzes and assessments combined with the above quantitative research findings, the thesis proposes recommendations for improving tax audit activities in Vietnam Thesis structure Apart from the introduction and conclusion, the thesis has four chapters: Chapter 1: Theoretical basis and overview of research on tax audit Chapter 2: Research Methods Chapter 3: Results of research on tax audit in Vietnam Chapter 4: Discussion on research results and recommendations for improving of tax audit in Vietnam CHAPTER THEORICAL BASIS AND OVERVIEW OF TAX AUDIT 1.1 Overview of tax audit 1.1.1 Concept Tax audit is the examination activities of authorized State agencies for taxpayers to conclude on the observance of tax law provisions; assess the advantages and disadvantages, contributing to the improvement of policies, the mechanism of tax management; Preventing and dealing with tax law violations, enhancing the compliance of taxpayers Tax audit is the supervisory activities of tax authorities for activities and transactions related to tax liabilities and situation of implementation tax administrative procedures as well as the situation of tax payment observance of taxpayers in order to ensure that the tax law is strictly enforced 1.1.2 Rule The principle of inspection activities is the set of regulations, rules and standards which must be observed throughout the audit activities of inspection agencies The basic principles of the tax audit are Compliance with Laws; Compliance with the audit process; Effective; Accurate, objective, honest; Public, democratic, timely; Not duplicate and not obstruct the operation of taxpayers 1.1.3 Role As one of the basic functions of the tax management system, tax auditors have some basic roles such as: Anti-tax collection; Encourage voluntary compliance; To ensure equality in the implementation of tax obligations; To raise the efficiency and effectiveness of State management in the tax domain; To improve the tax law policy; Collect information; Supporting taxpayers 1.1.4 Classify Based on the inspection plan, tax audit can be divided into two types: scheduled inspection and unscheduled inspection Depending on the size and scope of the inspection, tax audit is divided into two categories: comprehensive inspection and limited inspection Depending on the location of the tax audit, the inspection may be divided into two types: inspection at the headquarters of tax authorities and inspection at the head office of taxpayers 1.2 Overview of research on tax audit Research directly related to research content and research objectives can be grouped into three (03) research groups of general theoretical issues and one (01) research group on practical tax audit in Vietnam 1.2.1 Impact factors on the results of tax audit activities 1.2.1.1 Legal framework Trivedi and Shehata (2005) argue that the prevention theory suggesting that taxpayers play the game of chance in inspection (taxpayers calculate the results of the choice of different tax compliance possibilities in the relationship between benefits earned through fraudulent taxation and charges, fines may be imposed) The Organisation for Economic Cooperation and Development - OECD (2004) assesses that the effectiveness and validity of the audit activities of the tax authorities depend primarily on the nature and extent of their jurisdiction within the relevant legal framework, including the regulation of information collection and a sanctioning system to detect and punish cases of non-compliance 1.2.1.2 Organizational structure and capacity of auditors The OECD (2004) identifies that tax authorities which has effective inspection programs always takes interest in organizing, allocating resources and managing the inspection Determining the organizational structure of the inspection and allocation of human resources in a reasonable manner for building an inspection system at all scientific and appropriate levels, ensuring the uniformity, full implementation and increasing the efficiency of tax audit The OECD (2004) also pointed out that tax audit would not achieve its goals without qualified tax auditors If tax auditor implements the audit but make the taxpayers feeling helpless, the voluntary compliance will be relieved (Pope and Isa, 2010) 1.2.1.3 Data sources of taxpayers using for tax audit The OECD (2004) reviews that information and data of taxpayers have direct impact on effectiveness of the inspection of tax authorities In the database model for tax audit, centralized database is an important information platform to help tax authorities gather a completed data system, facilitate the audit planning, help the auditors exploit information effectively for inspection activities The modern tax audit procedure applies the method of inspection based on the risk analysis from the main information system of the taxpayers 1.2.1.4 Process, procedures and methods of inspection Reinganum and Wilde (1985) demonstrated that conducting tax audits on the basis of assessment of tax declaration would increase the amount of tax levied and increase the probability of detecting fraud Scotchmer and Suzanne (1987), Sanchez and Sobel (1993) argue that grouping when conducting tax audits is the optimal policy for maximizing the tax arrears OECD (2004) states that tax authorities with effective inspection activities tends to use an increasingly organized and systematic process to identify, assess and classify compliance risks in an orderly manner T & C Consulting (2008) evaluates the impact of a standardized inspection process on three main components: (1) standard procedures will enable the auditor to quickly and efficiently identify the wrongdoing; (2) standard procedures help to protect auditors during their work; and (3) the process of inspection is a standard for assessing the objectivity and professionalism of the inspection team 1.2.1.5 Supervising and managing the quality of inspection activities The OECD (2004) defines that audit activities should be based on good management practices including the use of comprehensive set of performance indicators (output assessment, ideally based on management results) and closely monitor the results and quality of activities achieved in practice At the same time, the OECD also pointed out the importance of trained specialists / tax officers with a focus on the areas of expertise needed to provide advice and support to other officers concerning their field of expertise or as the supervisor inspecting the quality of all inspections carried out in that field 1.2.1.6 Supporting tools and facilities for tax audit activities The OECD (2004) identifies that the auditors and audit team need to approach the procedures, policies, tools, supporting technical and material facilities in order to propose quality conclusions Although the supporting tools, technical and material facilities are different significantly due to the different management methods and complexity of each tax authority but directly affect the quality, productivity, effectiveness of the audit 1.2.1.7 The attitude of the taxpayers and the coordination of stakeholders Wenzel (2004) and Braithwaith (2003) highlight sociological and psychological factors that are important in tax compliance and coordination with the tax authorities In these analyzes, concepts such as trust in the tax authorities (Murphy, 2004), equity found in the tax system in general and tax inspection in particularly (Wenzel, 2004), reasons and rules Ethics (Frey, 2003 and Wenzel, 2004) encourage better tax compliance awareness, thereby better supporting tax audit OECD (2004) states that it is necessary for coordination among stakeholders in order to carry out good tax audits 1.2.2 Factors affecting the taxpayer's consensus with tax audit conclusions 1.2.2.1 Knowledge of taxpayers According to the theory of fairness and the results of research by T&C Consulting (2008), on the view of the taxpayers and the whole society, the results of the inspection could not be just "conclude and treat the right person is guilty of the crime " Taxpayers and the whole society are always interested in the opportunity cost of inspection time The OECD (2004) recognizes that the taxpayers' knowledge of tax policy and the provisions of taxpayer-related rights and obligations will affect consensus and acceptance of a right audit conclusion 1.2.2.2 Law provisions, inspection process and procedures Research results in some countries show that citizens' trust in the government's equitable management process has a big impact on their satisfaction, even greater than the result they receive (Angelis and Kupchik, 2007) T&C Consulting (2008) identifies inspection process and procedures will have a positive impact on the consensus of the taxpayers with the conclusions of the inspection 1.2.2.3 Capacity and qualification of auditors T&C Consulting (2008) examines that the fairness of attitudes is attached to the working style and service culture, the "customer-oriented" culture in audit activities According to T & C Consulting and OECD (2004), enhancing the capacity of auditors will improve the efficiency of audit activities, creating the consensus of the audit 1.2.3 The spreading effect of tax audit and the consensus on tax audit conclusions Allingham and Sandmo (1972) argue that tax audit is particularly important activity which strongly influence tax compliance because a higher inspection rate will increase the likelihood of compliance Hasseldine (2007) also claims that tax audit has a definite deterrent effect to the audited taxpayers as well as untreated taxpayers Ola (2001) noted that tax audit is very important because it has a positive effect on tax compliance of taxpayers and improve the level of voluntary compliance of taxpayers The OECD (2004) considers that the tax audit program, if implemented effectively, will play an important role in improving the management of the tax system In Vietnam, according to a survey conducted by T & C Consulting (2008), the results of the audit, the consensus of the audited taxpayers on the inspection conclusions has an impact on the perception of the taxpayers on the image, the position of the audit party but for society, the positive aspects of inspection activities have not been adequately recorded 1.2.4 Researches on tax audit in Vietnam In the scope of taxation in Vietnam, Thanh Xuan Ly (2006) has provided an overview of the status of tax audit in Vietnam in many aspects and pointed out the mainly existences as well as the reasons Pham Thuy Hong (2007) evaluated the current situation of organization structure of tax audit and inspection in the following aspects: auditors’ level of ability, tax audit program… At the local level, studies conducted by Nguyen Thi Thanh Minh (2007), Nguyen Lan Anh (2009), Phan Thi Minh Hien (2012), Pham Duc Long (2012)… summarize the tax audit activities that local tax authorities often conduct and focus in specific provinces Foreign independent researches or researches of international organizations focus on clarification of limitations of tax audit in Vietnam and identify the shortcomings and weaknesses (Booz Allen Hamilton, 2007 and World Bank, 2011) The World Bank (2016) also assesses that the important contents of tax audit only perform poorly against international level Nguyen Chi Dung (2009) analyzed the tax audit activities in relation to the compliance of taxpayers and outlined some impacts of tax audit on improving the compliance of taxpayers Tran Thi Minh Phuong and Nguyen Hoang (2012) also point out the relationship between tax audit and the promotion of tax compliance of taxpayers with descriptive statistics T & C Consulting (2008) conducted a theoretical survey of fairness in the context of the Vietnamese audit industry, the impact of the tax audit process on attitudes, behavior and activities performing the audit conclusion and proposal of audited taxpayers 1.2.5 Research gap The summarization points out that there isn’t any research which has overall assessment of factors’ impact on tax audit results and consensus of taxpayers with audit conclusion The researches also have no analysis and assessment the impact of some factors such as: internal coordination in tax authorities, treatment policies for tax auditors… in the relation with tax audit results; legal regulation, audit supervising procedures…, the consensus of taxpayers with audit conclusion Meanwhile, previous researches of factors impacting tax audit still have some shortcomings related to inspection methods or research models On the other hand, the impact of tax audit on tax authorities, taxpayers and society in the context of Viet Nam hasn’t been researched and assessed… CHAPTER RESEARCH METHODOLOGY 2.1 Framework of research paradigm and research hypothesis 2.1.1 Framework of research paradigm and research hypothesis of factors impacting tax audit As result of the available studies combining with the qualitative research findings on the factors impacting the tax audit in Vietnam, the framework of research paradigm and 10 hypotheses were identified: Support tools and facilities Capacity - quality of tax auditors H1.5 (+) Monitoring procedures H1.6 (+) H1.7 (+) H1.4 (+) H1.3 (+) Process, method of audit RESULTS OF TAX AUDIT ACTIVITIES H1.2 (+) Treatment policy of auditors H1.8 (+) Internal coordination H1.9 (+) Attitude and coordination of taxpayers Database of taxpayers H1.10 (+) H1.1 (+) Coordination of other stakeholders Legal framework Spreading impact - H1.4: The more completed, effective and appropriate the procedures for monitoring tax audit, the better the results of tax audit; - H1.5: The better the capacity and quality of tax auditors, the better the results of tax audit; - H1.6: The more completed and modern supportive tools and facilities to serve tax audit, the better the results of tax audit; - H1.7: The more effective and appropriate the treatment policies for tax auditors, the better the results of tax audit; - H1.8: The more frequently, closely and effective the internal coordination in tax authorities, the better the results of tax audit; - H1.9: The closer the cooperation of taxpayers together with the more willing the taxpayers to fight with the negative activities or when not consenting to the conclusion of tax audit, the better the results of tax audit; - H1.10: The more closely and effective the cooperation between the related parties and tax authorities, the better the results of the tax audit 2.1.2 Framework of research paradigm and research hypothesis on factors impacting the consensus of taxpayers to conclusions of tax audit As a result of the existing researches combining with the qualitative research results of the factors impacting the consensus of taxpayers on tax conclusions in Vietnam, the framework of research paradigm and 05 research hypothesis are defined as below: Legal regulation Picture, position of tax authorities Compliance of taxpayers The support of the society with tax authortities H2.1 (+) Inspection procedures and methods Compliance of taxpayers H2.2 (+) Figure 2.1 Model of research on the impact of factors on the results of tax audit in Vietnam and the spreading effects of audit results - H1.1: The better the system of legal framework related to tax audit activities, the better the results of tax audit - H1.2: The more comprehensive the database system, the better the results of tax audit - H1.3: The better the tax audit process, procedures and methods, the better the results of tax audit; Monitoring procedures H2.3 (+) CONSENSUS OF TAXPAYERS WITH CONCLUSION OF TAX AUDIT Picture, position of tax authorities H2.4 (+) Capacity - Quality of tax auditors H2.5 (+) Legal knowledge of taxpayers Spreading effect Figure 2.2 A research model of the impact of factors on the consensus of taxpayers with audit conclusions in Vietnam and the spreading effects of the consensus - H2.1: The legal system related to tax audit activities is more complete, clear and suitable to the reality, the taxpayers are more in agreement with the inspection conclusions; - H2.2: As the procedures, procedures and methods of inspection are stipulated and fully implemented, scientific and reasonable, the taxpayers shall agree with the inspection conclusions; - H2.3: The procedures for monitoring the tax audit activities are clear and effective, the taxpayers agree with the inspection conclusions; - H2.4: The better the capacity and quality of information disclosure, the more the taxpayers agree with the inspection conclusions; - H2.5: The better the taxpayer becomes aware of the tax law, the more the taxpayers agree with the inspection conclusions 2.2 Research Methods 2.2.1 Qualitative research methods There are two ways of collecting data: (1) Desk study on tax audit as well as on impact factors, scale of factors affecting tax audit and the consensus of taxpayers with audit conclusions; (2) In-depth interviews with some tax officials, some tax - accounting – audit consultants and some leaders of the accounting and finance department of the enterprise in order to collect the opinions of the current tax audit situation in Vietnam; factors and the scale of factors impacting the tax audit and the consensus of the taxpayers with the conclusions of tax audit in Vietnam as well as expressing the opinions of the solutions for improving the tax audit in Vietnam 2.2.2 Quantitative research methods Quantitative research is conducted in two steps: preliminary research and formal research Preliminary research was conducted by interviewing some tax auditors and some enterprises using a convenient sampling technique to detect mistakes in questionnaires and to initially test the scale The formal research was conducted through the following stages: designing the sample, collecting information from the survey for the tax auditors and enterprises in the study area; Data analysis using SPSS 22.0 software performed through the following steps: testing the reliability of the impact factors’ scale, exploratory factor analysis and correlation regression * Data Collecting - Data collection design: The official questionnaire having 56 questions for the tax auditors and 28 questions for the enterprises (each item was scored on a Likert scale from to 5) - Survey research sample: the tax auditors and enterprises have been audited in the period of 2013 - 2015 in 15 provinces and cities under the central government to ensure maximum the capacity of representative according to geographical characteristics and characteristics of socioeconomic development - Survey results: There are 623 tax auditors who were sent the questionnaires and 268 responses meeting the requirements, reaching 43.02%; Total of 935 enterprises were sent questionnaires and there are 256 responses meeting the requirements, accounting for 27.38% * Data processing Survey data is put in, saved as Microsoft Excel files in separated files Then, the data is converted to the format of the SPSS software and processed (coding, cleaning); Analysis by SPSS 22.0 processing software: testing the reliability of the impact factors’ scale, exploratory factor analysis and correlation regression 2.3 Econometric models and variables of the model Research using the Exploratory Factor Analysis (EFA) model Verification of factors influencing and identifying factors through analysis model of factors affecting tax audit: X1.i = A1.i1F1.1 + A1.i2F1.2 + A1.i3F1.3 + … + A1.imF1.m + V1.iU1.i And analysis model of factors impacting the consensus of taxpayers with the conclusion of tax audit: X2.i = A2.i1F2.1 + A2.i2F2 + A2.i3F2.3 + … + A2.imF2.m + V2.iU2.i Common factors can also be expressed as linear combinations of estimated value: F1.i = Wi1X1.1 + Wi2X1.2 + Wi3X1.3 + + WikX1.k and F2.i = W2.i1X2.1 + W2.i2X2.2 + W2.i3X2.3 + + W2.ikX2.k Finally, the research uses the multiple regression analysis method with linear relationships to determine the factors affecting the tax audit in Vietnam and the consensus of the taxpayers with the tax audit conclusions in Vietnam; then determining the importance of each factor From the results of analysis, model testing and applying into practice; identifying and presenting some factors affecting tax audits in Vietnam, impacting the consensus of taxpayers with the conclusion of tax audit in Vietnam through a linear regression model: Y1 = X1.0 + β1.1X1.1 + β1.2X1.2 + β1.3X1.3 + β1.4X1.4 + β1.5X1.5 + β1.6X1.6 + β1.7X1.7 + β1.8X1.8 + β1.9X1.9 + β1.10X1.10 and Y2 = X2.0 + β2.1X2.1 + β2.2X2.2 + β2.3X2.3 + β2.4X2.4 + β2.5X2.5 In the research, the factors influencing the results of tax audit used in the study include 10 components: (1) legal framework; (2) database of taxpayers; (3) audit process and methods; (4) monitoring procedures; (5) Capacity quality of tax auditors; (6) supporting tools and facilities; (7) Treatment policy for tax auditors; (8) Internal coordination and (9) Attitude and coordination of taxpayers; (10) Coordination of related parties (in which the 10-component scale includes 45 variables) The factors influencing the consensus of the taxpayers with the tax audit conclusions used in the research including five components: (1) legal regulation; (2) tax audit procedures and methods; (3) monitoring procedures; (4) Capacity - Quality of tax auditors and (5) Legal knowledge of taxpayers (in which 05 scale consists of 23 variables) CHAPTER RESULTS OF TAX AUDIT ACTIVITIES IN VIETNAM 3.1 Situation of tax audit in Vietnam 3.1.1 Results and reasons By concentrating the resources for tax audit, in the period of 2007 2015, the tax authorities have audited 430,282 taxpayers, collected and fined VND 69,743.7 billion (average reached 47,810 taxpayers audited and VND 7,749.3 billion tax and increased fine annually) At two times of year 2007 and year 2015, the total increase of tax and fines was 4.56 times, while the number of tax audit increased only 2.50 times These results are derived from many objective and subjective reasons but the most prominent ones are: Conversion of tax audit method in the mechanism of risk management; Completing step by step the tax audit process; Initially setting up database system on taxpayers and information technology application for tax audit; Developing human resources for tax audit… 3.1.2 Limitations and reasons In addition to the achieved results, the efficiency of tax audit activities is very low and not corresponding with the resources that tax authorities in Vietnam give in priority The situation of inadequate and untimely payment of tax, fines and increased late payments after tax audit is quite common, leading to this amount of debt compared to total state budget revenue after tax audit is always above 40% The objectives of anti-tax fraud through tax audit basically have not met when the violations of tax law in general and tax crime in particularly are not yet detected and treated fully and promptly It causes the situation of tax law violations more common and very complex The tax audit has not clearly demonstrated the power of deterrence, prevented the violations of tax regulation as well as promoted the selfcompliance of tax regulation of taxpayers The reasons for the main limitations are: limitation in organizing, assigning tasks of tax audit and human resources for tax audit; The method of tax audit under the risk management mechanism is not effective; The tax audit process is not appropriate; The tax database system fails to meet the requirements of tax audit; Lack of information technology applications for tax audit 3.2 Survey results of tax audit in Vietnam 3.2.1 Survey results of tax auditors The tax auditors participating in the survey evaluate the situation of 10 factors affecting tax audit in Vietnam at the average level (from 2,547 to 3,461) The details are shown in Figure 3.1: Hệ thống quy định pháp luật 5.0 Sự phối hợp bên liên quan CSDL NNT 4.0 2.665250 3.102600 2.546625 3.0 2.0 Thái độ phối hợp NNT 2.967375 Quy trình, phương pháp tra 3.460557 1.0 2.624975 2.934083 Sự phối hợp nội CQT 3.304100 Chế độ đãi ngộ CBTT Thủ tục giám sát 2.888060 Năng lực phẩm chất CBTT 3.287333 Công cụ hỗ trợ sở vật chất Figure 3.1 Evaluation of tax auditors about tax audit Source: Survey results of the author 3.2.2 Survey results of enterprises Enterprises participated in the survey assess the actual situation of 05 factors affecting the consensus of taxpayers with the tax audit conclusions in Vietnam at the average level (from 2,797 to 3,659) The details are shown in Figure 3.2: Hệ thống quy định pháp luật 2.796900 Hiểu biết pháp luật thuế NNT 2.966167 Thủ tục phương pháp tra 2.974329 3.658580 Năng lực phẩm chất CBTT 3.190450 Sự giám sát CQT Figure 3.2 Assessment of enterprises about tax audit activities Source: Survey results of the author 3.3 Results of scale verification and factor analysis 3.3.1 Scale verification and analysis of factors affecting the results of tax audit Results of Cronbach's alpha reliability scale verification for the initial observation variables show that the observed variables need to be removed After eliminating the above eight observed variables, the results of Cronbach's alpha reliability scale verification for the factors affecting tax audit are satisfactory Similarly, the Cronbach's alpha reliability test for the initial observed variables on the results of the tax audit showed that no observed variables need to be removed To evaluate the existence of correlations among the indicators in the model, the condition of the exploratory factor analysis, the study conducted by the KMO coefficient and the Barlett test With the result that the required KMO is satisfactory (greater than 0.5) and the critical value of Barlett's test is 0.000, that means the hypothesis that the indicators in the model which are not correlated is rejected Such factor analysis is appropriate Continuing with the EFA with the indicator set of the impact factors to reduce the indicators to new factors that are significant for the study, the final results after eliminating one indicator which does not guarantee the convergence show that the KMO coefficient is satisfactory (greater than 0.5) and the critical value of Barlett's test is 0.000 At the same time, the indicators in the model converge on eight factors To enhance the ability to explain factors, use the Varimax Produce rotation method to rotate the integer angles of the factors to minimize the number of variables that have large coefficients at the same factor In conclusion, after the implementation of the EFA, eight indicators accounted for 78.924% of the results of the tax audit (78.924% of the total variances) 21,076% of the results of tax audit explained by other factors Evaluating the importance of each observation variable in each factor using the factor score matrix which can represent the role of the indicators in each of the following factors: (1) Legal regulation system: QDPL = 0.321QDPL1 + 0.393QDPL2 + 0.395QDPL4 (2) Database of taxpayers: database = 0.289CSDL1 + 0.319CSDL2 + 0.337CSDL3 + 0.295CSDL4 (3) Process and methods of tax audit: QTPP = 0.175QTPP1 + 0.245QTPP2 + 0.282QTPP3 + 0.259QTPP4 + 0.279QTPP7 (4) Audit monitoring procedures: TTGS = 0.253TTGS1 + 0.228TTGS2 + 0.278TTGS4 + 0.272TTGS5 + 0.330TTGS6 (5) Capacity and quality of tax auditors: NLCB = 0.254NLCB2 + 0.297NLCB3 + 0.260NLCB4 + 0.294NLCB5 (6) Treatment policies for tax auditors and supporting tax audit activities: DNHT = 0.278NCB2 + 0.291DNCB3 + 0.216DNCB4 + 0.256CCVC2 + 0.252CCVC3 (7) Attitude and coordination of taxpayers: TDDN = 0.267 TDD1 + 0.273 TDD2 + 0.255 TDD3 + 0.263 TDD4 (8) Coordination for tax audit activities: PHTT = 0.229PHNB1 + 0.240PHNB2 + 0.144PHNB33 + 0.219PHLQ1 + 0.222PHLQ3 + 0.193PHLQ4 3.3.2 Scale verification and analysis of the factors effecting the consensus of the taxpayers on the tax audit conclusions Similarly, after analyzing the scale and analyzing the factors which effect the consensus of the taxpayers on the tax audit conclusion, inspection, analysis similar to the above, the results obtained is that all the indicators assure the convergence and indicators in the model converge to the five factors and explained 70,649% the consensus of the taxpayers with the audit conclusions Evaluate the importance of each observation variable in each factor using the factor score matrix, which can represent the role of the indicators in each of the following factors: (1) Legal regulations: QDPL = 0.398QDPL1 + 0.373QDPL2 + 0.299QDPL3 (2) Audit procedures and methods: TTPP = 0.196TTPP1 + 0.240TTPP2 + 0.199TTPP3 + 0.183TTPP6 + 0.197TTPP5 + 0.225TTPP7 (3) Audit monitoring procedures: TTGS = 0.316TTGS1 + 0.318TTGS2 + 0.321TTGS3 + 0.320TTGS4 (4) Capacity and quality of tax auditors: NLCB = 0.262NLCB1 + 0.321NLCB2 + 0.329NLCB3 + 0.373NLCB4 (5) Legal knowledge of taxpayers: HBPL = 0.303HBPL1 + 0.371HBPL2 + 0.359HBPL3 3.4 Results of regression analysis and hypothesis testing 3.4.1 Regression analysis and hypothesis testing of factors affecting the results of the tax audit The study use the Pearson coefficient to analyze the correlation between independent variables (08 impacted factors) and dependent variable “Result of tax audit” The results show that the variable “Results of tax audit” correlated with the other variables and correlation coefficient is statistically significant The adjusted value of R2Adjusted shows that the factors that led to the analysis accounted for 55.6% of the results of tax audit Continuing to verify the suitability of the model to test whether the regression model is consistent with the collected data set and whether it is applicable or not through F statistic test and the verification of the Hypothesis is given by correlated and regression testing, the achieved multiple regression results with partial regression coefficients in the model of factors influencing the tax audit indicate that the factor “Treatment policies for tax auditors” - support tax audit activities and factors Attitude coordination of taxpayers are eliminated from the model of regression analysis because of large sig The remaining six factors in the analytical model are consistent at sig significance levels that are relatively small and not violate multi-collinearity (non-correlated factors) Table 3.1 Multiple regression results Model Unstandardized Coefficients (Constant) ,216 Std Error ,201 B Standardized Coefficients Collinearity Statistics t Sig Beta Tolerance 1,078 ,282 VIF NLCB ,062 ,033 ,092 1,865 ,063** ,687 1,456 PHTT ,073 ,037 ,098 1,963 ,051** ,662 1,512 DNHT ,011 ,037 ,014 ,286 ,775 ,663 1,508 CSDL ,112 ,035 ,153 3,189 ,002*** ,720 1,390 TDDN -,006 ,026 -,010 -,217 ,829 ,808 1,238 QDPL ,056 ,023 ,116 2,463 ,014** ,747 1,338 QTPP ,138 ,043 ,146 3,219 ,001*** ,804 1,245 TTGS ,466 ,040 ,540 11,578 ,000*** ,765 1,307 a Dependent Variable: KQTT Correlation analysis between the result of tax audit and the spreading impact of tax audit results for tax authorities, taxpayers and society, the results of sig achieved is 0.000 so it can be confirmed that the hypothesis H0 (the correlation between the results of tax audit and the spreading impact of tax audit results for tax authorities, taxpayers and society) is rejected At the same time, because Pearson correlation coefficient > so it can be concluded: The results of the tax audit have a positive impact on the tax management capacity of tax authorities and the image - position of the tax authorities after tax audit; Favorable impact on the knowledge of tax regulation of taxpayers and the law observance of taxpayers after tax audit and the positive impact on the ability to deter and prevent acts of law violation of and the consensus of society with tax authorities after tax audit 3.4.2 Regression analysis and hypothesis testing of factors affecting the consensus of the taxpayers with tax audit conclusions The study used the Pearson coefficient to analyze the correlation between 05 independent variables (05 impact factors) and turn The consensus of taxpayers with tax audit conclusion The results show that the dependence variable The consensus of taxpayers with tax audit conclusions correlates with the other variables and the correlation coefficient is statistically significant The adjusted value of R2Adjusted indicates that the factors that led to the analysis explained 56.0% to The consensus of the taxpayer with audit conclusions Continuing the above steps, the factor Legal knowledge of taxpayers was excluded from the regression analysis because of the large sig The remaining factors in the analytical model were significant at sig 0, it can be concluded that the consensus of the taxpayers about the tax audit conclusions has a positive impact on the compliance of the taxpayers after inspection and positive impact on the feeling of taxpayers about the image and position of tax authorities after audit CHAPTER DISCUSSION OF RESULTS AND RECOMMENDATIONS FOR PERFORMANCE OF TAX AUDIT ACTIVITIES IN VIETNAM 4.1 Discuss the research results 4.1.1 Synthesis of research results by qualitative method On the basis of analysis of information, data and reports within and outside the tax industry; through the synthesis of the results of in-depth interviews with experts combined with the results of the survey of tax auditors, enterprises it can be noted some basic contents as below: The tax policy system is limited; The tax audit strategy has not been well-developed; The organization of the tax audit apparatus is not really appropriate or unbalanced among localities; The method of tax audit under the risk management mechanism is not effective; The process of tax audit is not completed so the tax auditors have opportunities for adaption; The supervision and assessment of tax audit activities are not tight and continuous; The quantity and quality of tax auditors is limited; The tax database system is scattered, lack of uniformity, lack of basic information, difficult to exploit and quality of information is still inadequate, not meet the requirements; Internal coordination in tax industry, coordination between tax authorities and related parties are not close and effective 4.1.2 Factors and impact level of factors on the results of tax audit activities in Vietnam After the implementation of the EFA procedure, the following eight factors are identified: (1) Regulatory System; (2) database of taxpayers; (3) tax audit process and methods; (4) Supervision procedures of tax audit; (5) Capacity and quality of tax auditors; (6) Treatment policies for tax auditors and support for tax audit activities; (7) Attitude and coordination of taxpayers; (8) Coordination in tax audit process Based on the greatest factor coefficient (representing the strongest impact factor of the observation variables) of the eight factors, the study suggests some contents which should be focus in each factor to improve the tax audit results After finishing the quantitative research, the achieved results is that six factors with a significant impact on the outcome of the tax audit arranged in decreasing level, including the followings: the tax audit procedures (β = 0,540); Database of taxpayers (β = 0.153); Process and method of tax audit (β = 0.146); Legal regulation system (β = 0.116); Coordination in tax audit process (β = 0.098) and Capacity and quality of tax auditors (β = 0.092) 4.1.3 Factors and impact level of factors on the consensus of taxpayers with the conclusions of tax audit in Vietnam After conducting the Exploratory Factor Analysis (EFA) procedure, it can be identified five factors affecting the consensus of the taxpayers to the audit conclusions as followings: (1) Regulatory system; (2) Tax audit process and procedures of the tax authorities; (3) Supervision audit of tax authorities; (4) Capacity and quality of tax auditors; (5) Tax regulation knowledge of taxpayers Based on the greatest factor coefficients of five factors, the study suggests some issues that need to be taken into account in order to strengthen the consensus of taxpayers with tax audit conclusions At the end of the quantitative study, the achieved result is that there is four-factor effect on the conclusions of the tax auditors on the level of the reduction effect was as follows: Procedures and methods of inspection ( β = 0.558); Legal regulations (β = 0.158); Inspection procedures (β = 0.157) and Capacity and quality of tax auditors (β = 0.133) 4.1.4 The spreading effect of tax audit results and the consensus of taxpayers on tax conclusions in Vietnam The results of the correlation analysis between tax audit results and spreading effects of tax audit results for tax authorities, taxpayers and society; the agreement of the taxpayers with tax audit conclusions and the law observance of the taxpayers after the inspection, the perception of the taxpayers about the image and position of the tax authorities after audit which reflects the correlation and prosperity From the result of Pearson's correlation coefficient (0.352 correlated with the inspection result and 0.698 correlated with the consensus of the tax audit conclusion) It can be considered that the results of tax audit and the consensus of taxpayers on the audit results have positive impact on image and position of the tax authorities after inspection In addition, with the Pearson correlation coefficient 0.776 in the correlation between taxpayers' compliance after tax audit and the consensus of taxpayers with the inspection conclusions, it can be concluded that the better the taxpayers agree with the inspection conclusions the better the taxpayers will follow the law after the inspection 4.2 Recommendations on solutions to improve tax audit in Vietnam 4.2.1 Legal framework for tax audit - Supplementing and finalizing the regulations on tax management; - Completing the law provisions on tax policies; - Supplementing and adjusting other related regulations 4.2.2 The strategy and organization of the tax audit - Formulating a tax audit strategy; - Adjusting the mechanism and method of planning annual inspection; - Perfecting the organization and apparatus of tax audit 4.2.3 Process of inspection and enhancement of inspection steps - Supplementing, detailing and enhancing to implement all steps for the preparation of tax audit - Additional regulations in details of procedures when conducting the inspection at the head office of taxpayers; - Additional regulations in details and enhancing to implement the steps of post-tax audit process 4.2.4 Supervision and evaluation of tax audit activities - To formulate regulations on supervision of tax audit activities and increase the quality of tax audit supervision procedures; - Standardization of criteria for assessment of tax audit activities and enhancement of statistics and assessment of tax audit activities 4.2.5 Human resources of tax audit - Develop a standard model of tax auditors capacity for information disclosure; - Strengthening training and activities to improve tax auditor capacity 4.2.6 Instruments supporting tax audit activities - Building tax database system; - Building a professional audit handbook; - Develop a set of documents to guide and record the inspection process; - Development of application software system for tax audit 4.2.7 Other support solutions - Renewal of methods of tax audit; - Strengthening the forecasting work in service of tax audit; - Enhancing the coordination and exchange of information for tax audit; - Summarizing and internal disseminating the violation activities of tax law in tax authorities; - Additional investment and strengthen material facilities for tax audit; - Publicity of results of tax audit; - Actively support taxpayers and tax propaganda 4.3 Other recommendations 4.3.1 Recommendations for taxpayers - Determining compliance with tax law is an indispensable obligation and proactively complies with tax law; - Equipping with the knowledge of general tax law and tax audit; - Taking the initiative in coordination and cooperation with tax authorities in detecting and fighting with activities of violating tax law; Coordinating in supervising the tax audit process; Fighting against violations of the taxpayers, tax auditors 4.3.2 Recommendations to the concerned State management agencies - State agencies shall coordinate on their own initiative to supply and share information in service of tax management and tax audit activities; coordinating the prevention and handling of violations; - State agencies jointly develop and implement effectively the coordination regulations in tax management - The police offices shall coordinate with each other in detecting, preventing, investigating and prosecuting for timely liability for activities of tax fraud; - The judicial bodies shall coordinate with each other in timely prosecuting and adjudicating cases related to the tax domain 4.3.3 Recommendations to other stakeholders - Organizations and individuals in the society are equipped with the necessary knowledge and basic knowledge about taxation; - Organizations and individuals in society condemn activities of tax fraud, non-observance of tax law; The activity of tax law violation is regarded as a violation of moral standards; - Newspaper and press agencies propagate tax law provisions; To disseminate sanctions against tax law violations; to provide information and coordinate with the tax authorities in general management and tax audit in particular; - Newspaper and press agencies commend the good performance of tax obligations; strongly criticize tax law violations; To publicize information on breach of the law on collection and results of handling violations of tax law CONCLUSION With the objective of contributing to supplement and perfect the rationale for tax audit activities; To propose solutions and proposals for perfecting tax audit activities in line with the practical situation of Vietnam through the objective, scientific and comprehensive study of tax audit activities in Vietnam The results are as follows: Firstly, systematize theories of tax audit activities; To synthesize the results of tax audit activities in four (4) groups: (1) Factors influencing the results of tax audit; (2) Factors effecting the consensus of the taxpayer with the audit conclusions; (3) Spreading effects of tax audit to tax authorities, taxpayers and social organizations and (4) Practical inspection of taxation in Vietnam as a basis for identifying what needs to be further researched, To clarify the tax audit activities as a basis for recommending solutions to improve the tax audit activities in Vietnam Secondly, development of two research paradigms and design of qualitative research methodologies and quantitative research methods to achieve research objectives, answer the research questions posed Thirdly, the thesis has analyzed and assessed the situation of tax audit in Vietnam in the period of 2007 - 2015 (results, limitations and main causes leading to the results as well as limitations) At the same time, on the basis of assessing the reliability of the scales, analyzing the factor of discovery and regression analysis have verified the appropriate and reliable model of the factors affecting the results of tax audit and consensus of the taxpayers to audit conclusion to determine the importance of each factor to the studied problem to study; confirming the spillover effects of tax audit results, the consensus of taxpayers with tax authorities Fourthly, on the basis of synthesis and comment on the results of the study, the thesis has identified important suggestions as a basis for proposing recommendations to improve the tax audit in Vietnam Recommendations for finalization of tax audits in Vietnam include group of seven (07) recommendations on basic, major and comprehensive solutions to Vietnamese tax authorities; group of three (03) recommendations for taxpayers, state management agencies and other stakeholders In general, the proposed recommendations system applied for the current period up to 2020 and vision to 2030 is proposed to be scientifically sound, feasible and in line with the realities and development contexts of Vietnam LIST OF RESEARCH STUDIES OF THE AUTHOR RELATED TO THE THEMES OF THE THESIS Nguyen Quang Hung (2012), "Selecting Subjects to Investigate Against Tax Fraud in Vietnam - Necessary Changes and Recommendations", Scientific seminar “Anti-fraud in Vietnam Theoretical and practical issues ", Academy of Finance Nguyen Quang Hung (2013), "Criteria for Assessment of Tax Auditorate Activity", Asia-Pacific Economic Journal, No 416, December 2013 Nguyen Quang Hung (2013), "The Need and Some Considerations in Taxpayer Interviews before Tax audit," Journal of Asia-Pacific Economic Affairs, December 2012 issue Phi Van Tuan, Nguyen Quang Hung et al (2013), Solution to improve the audit and inspection under the risk management mechanism, Hanoi