TAX AUTHORITIES AND CUSTOMS SHOULD GIVE TAXPAYERS OPPORTUNITIES TO EXPLAIN AND APPLY FOR LOWER PENALTIES BEFORE IMPOSING PENALTIES FOR BUSINESS TAX EVASION

01/01/2011

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Before deciding penalties for business tax evasion, the tax authorities and the Customs should give taxpayers a chance to (1) submit an explanatory statement and (2) understand the regulations governing reduction of the penalties stipulated in the Reference Table of Penalties for Tax Evasion (the "Table"), and counsel the tax-payers on how to apply for lower penalties.

For taxpayers who were caught for evasion of business tax before 3 May 2010, and whose cases are still pending, the Customs should notify them within six months of 8 December 2010 that they could apply for lower penalties if they admit to tax evasion and promise to pay the penalty in writing. For cases pending in the administrative court, the Customs should inform the court of the taxpayers' right to reduce the penalties.