Tax-Assignment_A1_Nguyen_Anh_Tuan_F11-089

Assignment Front Sheet Student Name/ID/Class (V)Nguyen Anh Tuan ID:F11-089 (E)18-01-1999 (Class)F11B Unit Title Unit 30: Taxation Assignment Title TAX1: Taxation Systems and the Legal and Ethical Considerations Assignment Number Assessor Submission Date 06 November 2019 Date Received 1st Similarity Report In This Assessment You Will Have Opportunities To Provide Evidence Against The Following Criteria Indicate The Page Numbers Where The Evidence Can Be Found STUDENT DECLARATION: I certify that the work submitted for this assignment is my own I have clearly referenced any sources used in the work I understand that false declaration is a form of malpractice Student Signature: NGUYỄN ANH TUẤN Date: 18-01-1999 Achievement Summary Assessment Criteria In the assessment you will have the opportunity to present evidence that shows you are able to: Evidence (page no) Achieved (tick) First Attempt Internal Verification Resubmission LO1 Analyse taxation systems and the legislation which governs them P1 Analyse taxation systems and consider taxation legislation that will have given implications on national taxation M1 Critically analyse and compare taxation systems in different countries D1 Provide supported and justified recommendations for developing effective tax systems and legislation that meet key principles in a global context LO4 Evaluate the impact on organizations of the legal and ethical constraints associated with taxation responsibilities P4 Evaluate the impact of key legal and ethical constraints on different organisations M4 Critically evaluate the impacts of key legal and ethical constraints on application to different organisations, providing supporting conclusions and recommendations D3 Provide supporting and justified recommendations for responding to and minimising the impact of legal and ethical constraints for a range of international examples Assignment Feedback Formative Feedback: Assessor to Student Action Plan Summative Feedback: Grade: Assessor Signature: Date: Student Signature: NGUYEN ANH TUAN Date:06 November 2019 FOR INTERNAL USE ONLY VERIFIED: □ Yes □ No DATE: VERIFIED BY: NAME: Table of content Page Introduction Tax system an important of taxation 1.1 Definition of tax 1.2 Characteristics of tax 1.3 Functions of tax Taxation systems in detail and consider taxation legislation that will have a 10 given implication on national taxation Taxation system and classification 10 2.2 Tax legislation 14 2.3 Due dates of tax 15 2.4 Enquires and Appeals 16 2.5 Tax Evasion and tax avoidance 17 2.6 The roles and responsibilities of tax practitioners 18 The key ethical and legal constraints that affect organizations and the impact of 18 these for different organizations 3.1 Tax compliance and the solution to encourage tax compliance 18 3.2 Ethic of tax payers, is tax avoidance ethical or unethical 20 3.3 Legal constraints (penalties) 20 3.4 Evaluate the impact of these for different organizations 21 Recommendation 24 Conclusion 25 Refference 26 Introduction My name is Nguyen Anh Tuan and I am a tax consultant for HAPRO Corporation HANOI TRADE JOINT STOCK CORPORATION is called "HAPRO" is a large member enterprise of BRG Group HAPRO was founded in 2004 and follows the pilot model of the parent company – subsidiary (haprogroup.vn, 2019) With the orientation and direction of BRG Group, HAPRO continues to promote domestic business activities, import, and export of agricultural products, and production of consumer goods HAPRO is striving for the benefit and satisfaction of Vietnamese and international customers In addition, HAPRO is in the process of developing towards a multidisciplinary corporation and becoming one of the leading brands in Vietnam and reaching out to the international market In 2017, HAPRO contributed VND 7,905,855,430 to the government's budget revenue, so it can be seen that HAPRO plays an important role in the state budget This research paper is a report of HAPRO tax advisor, to provide tax-related information and legal tax avoidance measures for HAPRO businesses This report provides information mainly on Vietnam's tax system and the international tax system for research purposes To specific, the report contains the following: Identify the Tax system and its importance to organisations and governments Identify and describe the tax system in Viet Nam The impact of the key ethical and legal constraints on the organisation and evaluate the consequence of these for other organisations Tax system and the important of taxation 1.1 Definition of tax  According to Julia (2019), Taxes are contributions that organizations and individuals must pay to the State Budget on the principle of non-return on the basis of law  It can be seen that taxes are the main revenue of the government and if without taxes the government will not be able to operate tax revenues are used to various purposes such as construction, maintenance, and development of public facilities, and improvement of the country's economy 1.2 Characteristics of tax Taxation is compulsory Taxes are revenue of the State Budget for general purposes, for all citizens and organizations when eligible to pay taxes Spending money to pay taxes does not bring direct benefits to taxpayers, but they still have to pay because taxes are an indispensable revenue source for the state Therefore, the State will apply penalties to citizens who fail to fulfil their tax payment obligations (phapluatthue.vn, 2019) Tax is Indirect- Return Citizens or organizations have to pay taxes when eligible and they will not receive any direct benefits from paying taxes, however, there is indirect reimbursement through the use of tax by the State for the general needs of the society such as national defines, improvement of social facilities, and welfare and so on (opentextbc.ca, 2013) For the reason, Taxation is a tool for the Government to redistribute income and wealth and it helps to balance the gap between rich and poor in the whole country Tax has high legality The state is the only entity that imposes taxes and vice versa, it is the main material means for maintaining state power According to "Clause 2, Article 138 of the Vietnamese constitution", the government has the right to impose administrative fines on businesses or individuals that commit tax evasion if found out 1.3 The main functions of tax Taxation has two main function including contributing to state budgets and regulate the macro-economy  Taxes constitute a major revenue source of the State budget In order to manage and operate the social economy, the state uses many tools such as planning, laws, financial policies, and so on In the above tools, monetary and financial policy plays the most important role and Tax is an important tool to perform the role of macroeconomic management In addition, the government also has revenues from activities such as borrowing, selling national resources, aid, and so on (voer.edu.vn, 2017) Year 1992 1993 1994 Total taxes and fees (VND billion) 18514 28695 36629 % compared with total state budget revenue 88.0 90.5 89.6 % Compared with GDP 16.75 21.0 21.51 In UK, HMRC achieved record high tax revenue of 60 billion pounds in the tax year ending in April 2018 This figure represents an increase of 5.4% or nearly billion pounds of the previous tax year In particular, more than 186 billion pounds of income tax, 128.6 billion pounds of VAT and 53.3 billion pounds of corporate tax (HMRC, 2018).The tax authorities' compliance of businesses with production increased by £ 1.4 billion to £ 30.3 billion, far exceeding the annual target  In the macro-economy, Taxes have many important roles such as promoting investments & economic growth, stabilize prices & curb inflation, redistribute social income and wealth, protect domestic production and development international economic integration - Taxation helps promote investments & economic growth: Tax policies help reducing social costs and promoting economic growth When the economy grows, government will adopt a number of tax incentives to attract investment and stimulate production When the economy develops and is stable, to prevent the danger of inflation and excess crisis, the state uses taxes to reduce the speed of mass investment and reduce the consumption of society For instance, Tax exemption for years, reduction of 50% of tax payable for the next years with the income of enterprises from implementing new investment projects in the field of socialization carried out in geographical areas with difficult economic conditions (ketoanleanh.edu.vn, 2016) - Taxation helps stabilize prices & curb inflation: The main cause of inflation is due to the increase in the supply and demand of goods leading to increase in the price of goods or an increase in input costs Therefore, the Government applies taxes to curb inflation and stabilize prices If supply is smaller than demand, the state reduces the income tax to stimulate production investment to create more products and increase taxes on consumer goods to reduce demand If inflation is caused by rising costs, rising unemployment, a stagnation of economic growth, the state cuts taxes on costs, stimulating labor productivity growth (voer.edu.vn, 2019) For example, in the face of price changes affecting life, the Government has decided to increase the minimum wage for employees of state agencies by 20% in 2008 On the other hand, an estimated 1.8 million retirees will be entitled to a social insurance benefit of 20% - increase Taxation helps redistribute social income and wealth: Through income taxes, the State plays a macro-regulatory role in the field of wages and income, limits the gap between rich and poor, and advances social justice will contribute to a redistribution of a part of the income of the rich in society For example, According to Article 22 of the 2007 Law on Personal Income Tax, The application of income tax deduction to workers with labor contracts of more than months with a specific enterprise who earn more than million / month will be subject to 5% tax and gradually increase to the highest tax rate of more than 80 million / month will be subject to a tax rate of up to 35% - (luatvietnam.vn, 2019) Taxation helps protect domestic production & facilitate international economic integration Nowadays, the trend of economic integration is growing strongly in the region and in the world Therefore, in order to stimulate the development of domestic production and stimulate the production of export goods, the State has imposed very low or no tax on export goods Low import tax on goods, machinery and equipment, especially luxury consumer goods According to the ASEAN Trade in Goods Agreement (2016), in order to ensure fair competition between imported goods and domestically produced goods in the context of reducing import tax to 0% for goods under commitments international In addition, Pursuant to Clause 4, Article of the Law amending and supplementing a number of articles of the Law on Special Consumption Tax 2014, alcohol must pay SCT, for wines with a concentration greater than 20, they will be subject to the tax rate of 65% from the year 2018 Taxation systems in detail and consider taxation legislation that will have a given implication on national taxation Taxation system and classification 2.1.1 Taxation system - Taxation system consists of two parts including tax policy system and tax administrative system About the tax administrative system, The Government has been implementing many measures to improve the transparency of policy institutions and tax administration, creating favourable conditions for taxpayers According to Mr Xuan Nghi (2016), for Vietnam, the process of reforming and modernizing the tax system with a focus on institutional transparency and management has also been paid special attention by the Government, especially strategy of reforming tax system in the period 2001-2010 and period 2011-2020 in order to build a modern, effective and effective Vietnam tax industry based on three basic foundations: policy institutions; tax administrative procedures; human resources and information technology applications - About tax policy system, after application of the "Doi Moi" policy (1986), Vietnam has gradually reformed its tax policy in order to attract investment and adapt to international practices In principle of nondiscrimination, the current tax policy is adjusted towards transparency and simplification In addition, citizens and organizations, or goods and services of WTO members or within the ASEAN Free Trade Area (AFTA), are also entitled to tax incentives in accordance with the schedule and provisions of the related convention (luatviet.com, 2011) Main types of Viet Nam UK taxation Corporate Income (CIT); All businesses that trade in goods and In the UK, Corporate tax depends on Tax services and earn profits are subject to the size of the business profits and its CIT The standard CIT rate is 25% corporate tax rate in 2017 is 19% and 10 Beer; and so Tax rates for these items indirectly on consumers Excise tax are usually very high and range from has the following role: 10% to 70% Goods and services subject to SST are also subject to VAT at a rate of 10% - Improve health risks when using substances such as drugs, alcohol - Reduce damage to the environment - Prevent activities that are harmful to society Personal Income Personal income tax includes income The income tax in UK depends on two Tax (PIT) from production and business main part: activities, salaries, wages, investment capital, and so on For personal income tax, when individuals have a +, How much of your income is above your Personal Allowance high income, they will pay more taxes +, How much of your income falls based on their income within each tax band (en.luathongduc.com, 2019) National Contributing to national insurance will Insurance enable every citizen to receive certain contributions benefits and State Pension For every citizen in the UK, when they are over 16 years old and have a personal income greater than £157 or have a personal benefit greater than £6,025 per year, they will have to pay national insurance However, each individual with different income will be subject to different insurance rates (ionos.co.uk, 2019) The Stamp Duty For citizens of England, Wales and Land Scotland, they will have to pay the (SDLT) Tax SDLT if they buy an asset or land at a certain price However, they can be entitled to tax exemptions 12 or reductions in the following cases: - The purchase price is less than £ 500,000 - This is the first purchase of each individual 2.1.2 Classification of taxation 2.1.2.1 Taxation methods - Direct tax: Direct taxes include taxes that go directly to the person's income that is paid directly to the government If personal income and corporation income are more and more so the direct taxes that the business has to pay the government are higher There are several types of direct taxes such as PIT, CIT, import and export duties, and so on - Indirect tax: Indirect taxes are taxes on goods and services that are paid indirectly to the government It means that the tax burden for each user of the same product or service is the same and there is no distinction between rich and poor In essence, when the tax increases, the demand for goods and services will decrease and vice versa It including VAT, excise duties, and so on (Surbhi S, 2018) For example, in UK, applicable VAT rates are 0%, 5%, and 10%, respectively The 0% rate applies to the export of goods and certain services and there was an increase in the VAT rate to 20% (Textbook, chapter 10, page 364) Thus if the products and services have high value, the customers will pay more tax when purchases because of the proportion rate tax in the UK higher than Viet Nam 2.1.2.2 Taxation bases - Income tax: Income taxes include a variety of tax types and based on income sources that individuals or organizations earned such as income from wages, profits earned from business activities, and so on 13 - Consumption tax is usually used for goods and it has taxable subjects that are the income to be consumed in the present including excise - taxes, VAT, sales tax, and so on Asset taxes have taxable subjects are the value of an asset such as real estate tax is the property tax levied on the value of fixed assets ( Chi, 2018) 2.1.2.3 Issuing Authority Based on organize and manage methods of taxes, there are two main taxes issuing authority including: - National tax - Local tax In Vietnam, the State has the role of unifying and promulgating laws and policies; and local governments based on policies to fulfill their obligations All tax revenues are uniformly managed by the State and the division of tax revenue sources to localities shall comply with the provisions of the state budget (Chi, 2018) 2.2 Tax legislation 2.2.1 Introduction of tax administration in Vietnam (Offices, Functions) The General Department of Taxation has the role of advising and drafting taxrelated documents and guiding how to implement tax laws Develop and manage revenue plans throughout the country and in each locality; Organize dissemination and professional guidance for the implementation of tax laws throughout the country; check the compliance with the tax law for tax law enforcement are highly effective; Resolving tax complaints and denunciations (Voer, 2018) + Provincial - level of tax department has the following main tasks and powers:  To guide, direct and organize the implementation of tax laws 14  To formulate and direct the implementation of revenue plans in the whole localities and each tax branch  To guide and inspect the Sub-Departments in performing the management tasks and handling tax complaints (Voer, 2018a) + District – level of tax department has two main function including:  Develop and implement detailed revenue collection plans for each tax law in the district; to organize the management of taxpayers to inspect taxpayers in the observance of tax law  Each tax office fulfills its obligations to create a coordinated implementation of the state plan 2.2.2 Self- assessment for Individuals and Enterprises Self-assessment for individuals and businesses is a tax administration mechanism, in which HAPRO assesses itself based on the business results in their tax returns and on the basis of self-determination rules In HAPRO, the administrative department has the role of updating and grasping the new tax laws and policies to meet the needs of the law Therefore, HAPRO determines their tax obligations, declares and pays taxes into the state budget, being responsible before the law for the truthfulness and accuracy of the declarations on the basis of the examination and supervision of the competent state agencies 2.3 Due dates of tax According to the decision of head of General Department of Tax (2013), the due date of tax can be divided into month, quarter and year Period Due of filling date and payment Tax Month 20th next month Quarter 30th of first month in next CIT, PIT, excise tax VAT 15 quarter The 90th day after the end CIT, PIT, environmental of financial year (30th or tax, nature resources tax Year 31st March)  Pursuant to Clause 3, Article 10, Chapter II of Circular No 156/2013 / TT-BTC dated November 6, 2013, the provisions are as follows:  The deadline for submitting monthly tax returns is the 20th day of the month following the month of arising tax liability  For example, HAPRO corporation is subject to VAT declaration on a quarterly basis VAT declaration for the fourth quarter of 2018 - Starting date of VAT declaration: January 1, 2019 - Deadline for submitting VAT sheet of the fourth quarter of 2018: January 30, 2019 - If you file a VAT return for the fourth quarter of 2018 after January 31, 2019, it is called a late payment due 2.4 Enquires and Appeals For judgments of first-instance Courts of the procuracies of the same level are 15 days, of the immediate superior procuracies is month from the date of pronouncement of sentences If procurators not attend the trial, the time limit for appeal shall be counted from the date the procures of the same level receives the sentence For decisions to suspend or suspend the resolution of cases of first-instance Courts: The time limit for appeal of procures of the same level is 07 days, for immediate superior procuracies is 10 days, since the procures of the same level receives the decision (Truong, 2018) 2.5 Tax Evasion and tax avoidance 16 Tax Evasion Definition Tax Avoidance Reduce tax liability by using any As a method of reducing tax method regardless of whether or not it liability not violate the violates a law (Surbhi S, 2019) rules of tax Consequence Penalty or imprisonment Deferment of tax liability Penalties Regulations on penalties for tax evasion and fraud are prescribed in Article 13 (2013), as follows: For acts of tax evasion and tax fraud will be fined from to times the tax amount for acts of tax evasion In addition, for businesses that commit heavy tax evasion acts will be liable for criminal liability (ketoanthienung.net, 2013) For example, In the past 20 years, Coca-Cola has reported losses In 2010, this business reported a loss of over 188 billion in Vietnam market However, this business has invested more than US $ 300 million to expand the market in Vietnam Therefore, it can be seen that this business is in doubt regarding transfer pricing to evade taxes Estimated coca-cola in the past 10 years has evaded taxes in large amounts up to more than a trillion 2.6 The roles and responsibilities of tax practitioners 17 Based on Article 18 of the tax administration law on the role and responsibilities of taxpayers (2019) include the following tasks: - To organize, implement and manage tax revenues and other State - budget revenues according to the provisions of tax law Disseminate and guide tax laws To explain and provide information related to determination of tax - obligations to taxpayers Implementing tax exemption, reduction, and handling according to - the provisions of law To settle complaints and denunciations related to the implementation of tax law according to its competence The key ethical and legal constraints that affect organizations and the impact of these for different organizations 3.1 Tax compliance and the solution to encourage tax compliance 3.1.1 Tax compliance Tax compliance refers to fulfilling all tax obligations in accordance with the law and it includes filing a tax return within the prescribed time, without cheating based on deductions, stating income, and so on 3.1.2 Factors affect to tax compliance There are many factors affecting an individual or business’s tax compliance, such as: - Economic factors: According to Loo (2006), tax compliance refers to the costs and benefits of fulfilling tax obligations Most businesses not want to pay taxes, but this is a must for them - Therefore, they often think about tax evasion and evasion Tax policies: According to Ms Thuy (2009), the complexity and inequality in tax laws is the cause of the opposition and the condition for tax avoidance and evasion Therefore, the application of appropriate tax policy is a premise for businesses to fulfill tax - compliance obligations Psychological and cognitive factors: praising the spirit and responsibility of a business with respect to tax obligations will have 18 an impact on compliance with tax payment obligations (OECD, 2004) In addition, the introduction and application of penalties for tax avoidance and tax evasion will affect the psychology of businesses that indicate the risks that businesses incur when not complying tax and it helps them realize the importance of tax compliance 3.1.3 Solution to encourage tax compliance - To solve the issues related to tax noncompliance of the organization, applying a stable, clear, simple and fair tax policy will be the money to comply with the tax In addition, the reduction of tax rates also contributes to increase tax compliance and prevent tax avoidance and evasion of a business because it reduces the tax burden that businesses - have to pay According to Ms Hong (2010), promoting and changing propaganda methods to improve people’s understanding of tax compliance, especially to support businesses and individuals to pay taxes by applying services to improve efficiency For businesses that use tax avoidance and tax evasion methods, they must take reasonable measures and commend those individuals who have fulfilled their tax obligations in order to boost their morale and improve the importance of fulfilling tax obligations 3.2 Ethic of tax payers, is tax avoidance ethical or unethical - Tax ethics relates to taxpayers’ tax compliance obligations and it affected by relationship between each taxpayer with the Government To measure government tax ethics, it is based on how often businesses pay taxes and compliance with tax regulations Individuals who commit tax evasion and avoidance have low tax ethics and will be responsible before government penalties if found Tax ethical includes submitting tax returns on time, not cheating in the tax declaration - process, making full tax payments to the government, and so on For many businesses, tax avoidance is necessary because it helps them maximize profits by reducing the amount of tax payable to the government However, they not think that tax is the main source of 19 government revenue for public purposes, so if the tax does not mean that the government will not be able to improve public-related issues such as infrastructure, education, social welfare, and so on Thus, in my opinion, avoiding taxes is morally wrong because it reduces a large amount of government revenue 3.3 Legal constraints (penalties) According to Article 13, sanctioning of tax evasion and frauds Taxpayers that commit acts of tax evasion or tax fraud according to law provisions shall be sanctioned according to the number of times calculated on the evaded tax amount or fraudulent tax amounts as follows: - A fine from to times is imposed on the evaded tax amount or the fraudulent tax amount based on the amount of tax evasion and avoidance (except for cases of sanctioning for acts of false declaration leading to tax arrears in Clause 1, Article 12 of the Circular) Article 161: Crime of tax evasion Those that evade tax with an amount of between fifty million dongs and under one hundred and fifty million dongs or have been administratively sanctioned for acts of tax evasion or have been convicted of this crime shall be fined from one visit to the next five times the amount of tax evasion or non-custodial reform for up to two years Committing the crime of tax evasion with an amount of between one hundred and fifty million dongs and under five hundred million dongs or recidivism for this crime, the offenders shall be subject to a fine of from one to five times the amount of tax evasion or imprisonment from six months to three years Committing the crime of tax evasion with an amount of five hundred million dongs or more or in other particularly serious cases, the offenders shall be sentenced to between two and seven years of imprisonment 20 Offenders may also be subject to a fine of from one to three times the evaded tax amount 3.4 Evaluate the impact of these for different organizations Unincorporated Organization Definition Unincorporated Incorporated Organization organizations Incorporated organizations are are the simple structure of a a formal legal structure non-profit organization and it adopted by a large range of including business households, non-profit sold traders and so on Tax compliance When paying unincorporated taxes, organizations (Better, 2013) an An incorporation organization organization pays taxes for all profits that must report every profits or the companies make from losses on its own tax return and different activities not cheat in the process of individuals who and receive declaring them because the payments from the company business does not exist also pay personal taxes It independently In addition, this means that a registered owner business needs to submit a tax business can be pay tax twice return and pay it on time time in the period and the tax compliance of incorporated organization will higher than unincorporated Tax rates for organization Vietnamese businesses depend on the type of business they operate, in particular for businesses operating in gas, oil and natural resources; they will be subject to a tax rate of 32-50% (Deloitte, 2019) Ethics For the tax payment decision of The decision to pay taxes by unincorporated organizations incorporated organizations 21 because only one person stands depends on the decisions of out to register and establish, so the members of the board of it only requires one owner to be directors Therefore, they need responsible for paying taxes to consider before making a decision that it should use tax avoidance or decisions or tax tax evasion payment decisions Legal Constraints For an unincorporated In an incorporated organization, there is only one organization, it will need a tax owner and they will be accountant to list all the taxes responsible for the tax liability the company needs to pay because there are so many different activities in the business, and each activity is subject to the various taxes Tax Liability Solution Value add tax (VAT) Corporation Income Tax (CIT) Personal Income Tax ( PIT ) Value Add Tax (VAT) For an unincorporated For organization, in order incorporated to organizations, the application improve tax compliance, tax of information technology to authorities should have support businesses in the tax propaganda methods on the payment process is essential role and responsibility of tax First, for the improvement the application of and information technology helps development of the country In propaganda activities about addition, should local review authorities tax all laws and regulations business become faster Second, it will activities of the business to be assist taxpayers in the process sure that the amount of tax of payable is correct so tax declaration and it calculation On the other hand, contributes to improving the in order to improve tax 22 tax compliance of businesses compliance for businesses, the government should apply strict penalties for businesses that evade tax and avoid tax For HAPRO, we will apply information technology to be able to fulfill tax obligations and complete it in the fastest time In addition, we will be a pioneer in complying with tax obligations In the UK, the government will use methods such as corporate compliance checks For example, the HM Revenue and Customs (HMRC) will call a business to check any tax account that the business has to pay, the company's tax return, tax calculation, and so on If you break or fraud in the tax declaration process that you will be responsible before the law In addition, for each form of tax evasion and tax avoidance, the government will apply different sanctions Specifically, in the process of tax declaration, due to a number of problems, businesses not fulfil their tax liability, the UK government will make it possible for businesses to reimburse the right amount of tax while for businesses that have the form of tax evasion if HMRC finds out that the business will be subject to heavy administrative liability or criminal penalties Recommendation It can be seen that, in the Vietnamese tax system, there are still shortcomings, so businesses have taken advantage of these holes to using tax avoidance and tax evasion methods Therefore, the government needs to consider and amend the provisions of the law accordingly to minimize the situation In addition, the government should apply the methods of tax declaration or calculation on electronic technology software, which will help the government to communicate tax related to regulations to businesses as quickly as possible time in the process and more convenient for 23 taxpayers Vietnam Government should reduce taxes to encourage international trade, especially for import and export taxes On the other hand, not only encouraging international trade, but the government should also create conditions for businesses to expand and develop domestically For example, for businesses investing in scientific technology, education or business expansion in mountainous areas or areas with difficult economic conditions such as Corporation Income tax will exempt in years, 50% reduction of payable tax amount for subsequent years and various forms of tax reduction for enterprises (ModRoyal, 2016) To improve tax compliance, the government needs to apply various forms of support or penalties for businesses The inspection and monitoring of business operations and tax declaration of the business will help the government to capture the behaviors that businesses take to devise preventive measures On the other hand, imposing heavy penalties on individuals or businesses that commit tax evasion acts as a deterrent and it is a warning to other businesses if tax evasion is still committed Conclusion Taxes are an integral part of government revenue A tax system is introduced with many different types of taxes, which are closely related to each other and they all have a common purpose of serving government activities Therefore, Vietnam's tax system needs to be improved and changed to align with global economic trends As a tax consultation for HAPRO, this report analyses and presents Vietnam's tax system compared to other countries around the world In addition, the influence of laws on the tax compliance of individuals or businesses in Vietnam, especially its effects on HAPRO and HAPRO's responsibilities in fulfilling its tax rolls and obligations to the government Therefore, tax consultants play a very important role in addition to the declaration and calculation of the amount of tax that businesses have to pay, it also shows the morality and responsibility of enterprises for the country's development 24 Reference Boards, B (2019) What is an Incorporated Association? [online] Better Boards Available at: https://betterboards.net/non-profit-fact-sheets/incorporated-association/ [Accessed Nov 2019] Business, G and UK, T (2019) Types of taxes in the UK [online] IONOS Startupguide Available at: https://www.ionos.co.uk/startupguide/grow-your-business/types-of- taxes-in-the-uk/ [Accessed Nov 2019] Chi, L (2019) Thuế gì? Các đặc trưng thuế| Luận Văn Việt [online] Luận Văn Việt Available at: https://luanvanviet.com/dac-trung-co-ban-cua-thue/ [Accessed Nov 2019] Coverfox Insurance (2019) What is Tax? Get Details About Tax in India [online] Available at: https://www.coverfox.com/personal-finance/tax/ [Accessed 16 Oct 2019] Hahu Zone (2019) Meaning and Characteristics Of Taxation [online] Available at: https://hahuzone.com/meaning-and-characteristics-taxation [Accessed 16 Oct 2019] 25