Vietnamese lawmakers review accounting law amendments; delegate calls for one financial report per period
Vietnam’s National Assembly reviewed amendments to the accounting and independent audit laws on November 13. A delegate warned that companies submitting different financial reports to tax authorities and banks could cause tax revenue losses and a buildup of bad debt. Lawmakers proposed a way to cross-check reports and tighter oversight of accounting software and service providers.
On the morning of November 13, Vietnam’s National Assembly reviewed draft amendments to provisions of the Accounting Law and the Independent Audit Law. Ho Chi Minh City delegate Phạm Trọng Nhân said he had received promotional emails offering to prepare financial reports that would present a company’s finances favorably while minimizing its tax payments. He was concerned that companies could submit different reports to tax authorities and banks: reports to tax authorities showing low profits or even losses, while those sent to banks showed sound finances. This could lead to lost tax revenue and a buildup of bad debt.
Ho Chi Minh City delegate Phạm Trọng Nhân.（VietVance）
Phạm Trọng Nhân proposed maintaining the principle that each company should have just one consistent financial report for each accounting period. He also proposed that the government set rules for accessing and cross-checking submitted reports through the electronic tax portal with the company’s consent. In addition, he called for a ban on software that allows recorded data to be deleted or changed without leaving a trace, or that enables two sets of accounts to be maintained in parallel for the same accounting period.
According to the Ministry of Finance, Vietnam currently has more than 1 million active companies, while about 12,500 companies operate in the accounting and auditing sector. Gia Lai delegate Vũ Hồng Quân said accounting service providers should flag problems they discover and clients must provide truthful information. He called for strict penalties for those who knowingly hire others or collude to falsify data.
The draft amendments add four categories of conduct that could lead to suspension of accounting service operations. These include breaches of professional standards or ethics that could cause, or have caused, serious consequences, as well as deliberate falsification or collusive alteration of accounting records and financial reports. Dương Khắc Mai, deputy head of the Lâm Đồng provincial delegation, proposed that suspension decisions specify the violation, legal basis, scope and duration, and protect the affected party’s right to respond. Nghệ An delegate Thái Thị An Chung called for clearer grounds for assessing the risk of serious consequences.
Finance Minister Ngô Văn Tuấn responds to the National Assembly on the morning of November 13.（VietVance）
Finance Minister Ngô Văn Tuấn said accounting reports must provide truthful and reasonable information to users including tax authorities and lenders. Vietnam has about 2,500 accountants with practicing certificates, but only more than 500 actually provide accounting services. He said the drafting body would review practice requirements and prohibited conduct to improve service quality and prevent conflicts of interest.
Source: VietVance
