Lesson 2: Outstanding Initiatives, Effective Applications
With its "Taxpayer Management and Risk Tracking Application," the Nghe An Tax Department was honored in 2023 at the General Department of Taxation's conference and has been effectively implementing it in recent times.
With its "Taxpayer Management and Risk Tracking Application," the Nghe An Tax Department was honored in 2023 at the General Department of Taxation's conference and has been effectively implementing it in recent times.
Over the years, the application of information technology (IT) to promote digital transformation in tax management has been strongly implemented by the Ministry of Finance, the General Department of Taxation, and the Nghe An Provincial Tax Department.
However, taxpayer data is still being managed in a fragmented manner across various applications, hindering tax administration and the guidance and management of tax authorities at all levels. This becomes even more apparent when the policy of transitioning to electronic invoices is implemented, leading to numerous shortcomings in managing businesses registered to use electronic invoices; the illegal buying and selling of electronic invoices by taxpayers is also on the rise.
Therefore, coordination is needed in reviewing and handling illegal invoices among tax authorities nationwide. Every day, the Nghe An Tax Department receives numerous official letters regarding coordination and warnings about businesses using illegal invoices. The Nghe An Tax Department has assigned its specialized department to receive and classify these letters, then forward them to the relevant Inspection and Auditing Departments and tax branches for processing. After processing, the Inspection and Auditing Departments send back reports to the assigned specialized department for compilation. All this work is done manually, is very time-consuming, and yields unsatisfactory results. The reporting of invoice reviews is not thorough; in many cases, invoices are reported as processed even though they were not, and the responsibility of the assigned departments and officials is not clearly assigned.
In practice, it is necessary to centralize the taxpayer database to improve efficiency in managing and analyzing information for taxpayer risk assessment; updating information collected from external sources; information on invoice risks from businesses sent to other tax authorities; updating inspection and audit results; and managing data from the assignment, review, and processing of electronic invoices with signs of risk among tax authorities nationwide. At the same time, it is necessary to strengthen the responsibilities of departments and tax branches...
To address the practical issues, the Nghe An Provincial Tax Department has researched solutions for managing and assessing taxpayer risks, and managing electronic invoice risks with the initiative "Taxpayer Management and Risk Monitoring (TDRR) at the Nghe An Provincial Tax Department".
Representatives of the initiative's authors stated: The land management application software is written in C# programming language, with a Winform interface based on the ".NET" platform. It uses a SQL Server database for easy, fast, and secure information storage and retrieval. The database is centralized on the Tax Department's server. Individuals with assigned tasks are granted accounts and permissions are assigned according to their assigned functions and responsibilities. It allows for the input of preliminary data to assess taxpayer information, information transferred from other agencies such as Customs, Police, and the State Audit Office, and warnings about potentially risky invoices sent to other tax authorities nationwide. Additionally, the application supports users in reviewing processing history, searching for information with various fields such as tax identification number (MST), taxpayer name, etc., and generating quick, complete, and accurate reports.
The software allows importing invoice data with risk warnings from other tax authorities, processing and modifying incorrectly entered invoice information, and completing invoice review to change the status to "Completed," enabling staff to clearly and conveniently manage and control processed and unprocessed invoices.
The initiative supports the generation of detailed summary reports of all invoices showing signs of risk into the system using a pre-existing template. The team behind this initiative advised the Department's leadership to issue Official Letter No. 3091/CT-CNTT dated June 1, 2023, regarding the implementation of the taxpayer management and risk monitoring application at the Nghe An Tax Department. This application has been deployed to departments within the Tax Department, the Vinh City Tax Office, and regional tax offices since June 2023, demonstrating very high effectiveness. The initiative has been rated excellent by the General Department of Taxation. The application represents a breakthrough in tax risk management and has high applicability nationwide.
Mr. Nguyen Dinh Duc, Director of the Nghe An Tax Department and one of the authors of the initiative, said: The innovation lies in the fact that users do not need to log into different applications to access taxpayer data in the province, but only need to log into the TDRR application. It supports the management of data on declaration information, information transferred from other agencies; invoices with signs of risk, and initial risk assessment surveys for taxpayers registering to use electronic invoices. In addition, it contributes to building a centralized database based on the combination of taxpayer data from the tax department's applications and external data collected by tax officials to support tax management.
Discussing the effectiveness of the initiative at the grassroots level, the Head of the Song Lam II Tax Sub-Department stated: The application has been effective and supportive in tax management. It helps the Sub-Department coordinate better with other functional agencies. The software allows for the initial input of preliminary survey forms on taxpayers who do not use electronic invoices using a pre-existing template, modification of input information, printing of the entered survey forms according to the template, and overall reports for monitoring and management.
The above initiative by the Nghe An Tax Department is just one of hundreds of initiatives by the Nghe An Tax Department over the years that have contributed to effective tax management in the area...
