Can a Chief Accountant Face Criminal Liability for Tax Evasion?

Are you a chief accountant or a foreign professional being investigated for tax evasion in Vietnam? Could you personally face criminal liability? What legal risks are ahead, and what is the safest way to handle the situation?

Can a Chief Accountant Be Criminally Prosecuted for Tax Evasion?

In practice, many of DEDICA’s clients—especially foreign individuals working in Vietnam—often believe: “Tax responsibility belongs to the company, not to me personally.”

However, once an investigation begins, the situation is rarely that simple.

Under Vietnamese law, the role of a Chief Accountant is not merely technical. It involves financial control, advisory responsibilities, and approval authority over tax and accounting matters.

This means that if violations occur, a chief accountant may be personally exposed to criminal liability in a tax evasion case.

When Can a Chief Accountant Be Held Criminally Liable?

Under the Vietnamese Criminal Code 2015 (as amended in 2017), tax evasion may lead to criminal prosecution when:

• There are fraudulent acts aimed at reducing payable taxes
• The evaded tax amount meets the statutory threshold (generally from VND 100 million or lower if repeated violations occur)
• There is intentional conduct

Importantly, Vietnamese law does not only prosecute corporate entities, but also individuals directly involved.

In many cases, a chief accountant may be considered:

• A direct offender (e.g., preparing false documents or incorrect tax filings)
• An accomplice (aware of wrongdoing but still executing instructions)
• A facilitator (advising on how to legitimize improper documents)

Therefore, if investigators can establish that you knew, participated, or intentionally engaged in the conduct, criminal liability is possible.

Are Foreign Chief Accountants Treated the Same as Vietnamese Nationals?

The short answer is: Yes.

Under Vietnamese law, any individual committing an offense within Vietnam’s territory may be subject to prosecution, regardless of nationality.

This is particularly relevant for:

• Foreign employees working in FDI companies
• Chief Financial Officers (CFOs) acting in accounting roles
• Individuals signing financial statements or tax filings

From DEDICA’s experience, many foreign clients fall into situations where they:

• Do not fully understand Vietnam’s tax regulations
• Rely heavily on internal systems or local staff
• Sign documents as part of standard procedures without thorough review

Unfortunately, “lack of knowledge” is not always a valid defense.

What Should You Do If You Are Investigated as a Chief Accountant?

If you or someone close to you is facing this situation, the most important thing is not panic—but understanding your legal position and acting strategically from the beginning.

Clarify Your Role: Are You a Decision-Maker or Just Involved?

In tax evasion cases, investigators will typically determine:

• Who made the key decisions
• Who carried out the acts
• Who knew but failed to prevent them

For a chief accountant, proving that:

• You were acting under instructions
• You did not have final decision-making authority
• You did not personally benefit
  
   

Can be critical factors in mitigating liability or influencing the legal outcome.

Critical Mistakes to Avoid When Working with Authorities

Many foreign clients unintentionally make mistakes such as:

• Providing explanations without fully understanding their legal rights
• Signing statements or records without careful review
• Giving inconsistent information

These actions can significantly weaken your legal position.

You should remember:
You have the right to legal counsel from the investigation stage. This is not an admission of guilt—it is a legitimate way to protect your rights.

A Safer Approach: Early Legal Advice and the Right Strategy

In cases handled by DEDICA:

• Some chief accountants were not prosecuted after demonstrating lack of intent
• Some cases were redirected to administrative handling
• Others achieved significant mitigation of liability

The common factor?
 Early legal preparation

DEDICA understands the unique challenges faced by foreign clients:

• Language barriers
• Differences in legal systems
• Psychological pressure when dealing with authorities

These factors can lead to decisions that negatively impact your case.

While we do not guarantee outcomes, we can help you:

• Understand your legal position clearly
• Assess your actual risks
• Build an appropriate legal strategy when working with authorities

Chief Accountants in Tax Evasion Cases: Understanding Your Position Is Key

One of the most common misconceptions is:
 “Only the director is responsible.”

In reality, in many cases in Vietnam:

• The chief accountant is among the first to be summoned
• They are the ones who hold financial records and data
• They are often viewed as having the deepest technical involvement

This makes them a central focus in investigations.

Factors That May Affect Criminal Liability

Depending on the case, liability may depend on:

• The level of involvement in the tax evasion conduct
• The individual’s role within the company structure
• Evidence of awareness or intent
• The level of cooperation with authorities

Important note: There is no one-size-fits-all outcome. Each case must be assessed individually.

Legal Disclaimer: This article is intended for general informational purposes only and does not constitute formal legal advice for any specific case.

Whether an individual is subject to criminal liability depends on:

• The case file
• Available evidence
• The assessment of competent authorities

Are You Facing a Similar Situation?

If you are:

• A foreign individual being investigated for tax evasion in Vietnam
• A chief accountant, CFO, or signatory of tax documents
• A family member of someone being detained or investigated

Do not wait until the situation escalates.

DEDICA Law, a Ho Chi Minh City-based law firm, has extensive experience assisting foreign clients in criminal cases in Vietnam:

• Advising from the early investigation stage
• Protecting clients’ rights throughout legal proceedings
• Developing tailored legal strategies for each situation

Are you facing a similar issue?
Contact DEDICA Law for a legal strategy tailored to your case.

Contact DEDICA Law Firm for Professional Legal Support

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Contact us today for a free initial consultation with our experienced lawyers!