Headlines 20/08/2019 15:49 CH

No criminal actions against evading payment of SI contributions to be taken prior to January 1, 2018

Thu Linh

The Council of Judges of People’s Supreme Court has issued the Resolution No. 05/2019/NQ-HDTP providing guidance on application of Article 216 regarding the offence of evasion of payment of SI, HI and UI contributions for employees in the 2015 Criminal Code.

According to the Resolution, any act of evasion of payment of SI, HI and UI contributions for employees committed prior to 0:00 midnight on January 1, 2018 will not be subject to any criminal action as provided in Article 216 of the 2015 Criminal Code, but the following actions vary under different circumstances:

- In case an administrative penalty has not been imposed yet and the statute of limitations for imposition of an administrative penalty has not expired, the competent authority may consider imposing an administrative penalty. 

- In case the person or entity intentionally avoids or delays compliance with an administrative penalty already imposed, the statute of limitations for enforcement of such administrative penalty will be determined under clause 2 of Article 74 in the Law on Administrative Sanctions; 

Voluntary or regulatory enforcement of a decision on imposition of this administrative penalty is subject to laws on enforcement of compliance with the decision on imposition of administrative penalties.

- In case of any damage to an employee, social security agency or other person or entity, the affected person may lodge a civil lawsuit to claim out-of-contract damages against the violator. 

The fact is that an administrative penalty has already been imposed for evasion of payment of SI, HI and UI contributions for employees before 0:00 midnight on January 1, 2018 does not constitute a basis to result in any criminal prosecution in accordance with Article 216 in the 2015 Criminal Code.

The Resolution No. 05/2019/NQ-HDTP will enter into force on September 1, 2019.

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