Coca-Cola Vietnam asked to submit $35 million for tax evasion

Of the total $20 million tax arrears, nearly $15.3 million is corporate income tax, $2.5 million is value added tax, and nearly $2.2million tax paid on behalf of foreign contractors, tax authority was cited by Tuoi Tre Newspaper. 

The firm was also subject to a late payment of nearly $12.3 million and an administrative fine of nearly $2.6 million.

The Vietnamese tax authority also asked Coca-Cola Vietnam to exclude the loss of over $32.5 million. After inspection, the General Department of Taxation reduced the amount of losses.

The business will accept part of the tax arrears and penalties. However, it needs to discuss with the authorities, Vu Thanh Truc, head of Foreign Affairs and Sustainable Development Coca-Cola in Indochina, was cited Zing.vn.

Regarding transfer pricing and tax evasion, Truc told the news outlet that “Coca-Cola Vietnam’s reputation is very important, so we never do that".

Coca-Cola was subjected to transfer pricing by tax authorities after reporting losses continuously while expanding its sales and sales network.

In October 2015, Coca-Cola Vietnam said it paid $20 million taxes in 2014. This was the first time the firm paid taxes after 20 years of presence in Vietnam market. It said the business had suffered losses for a long period of time, so it was not subject to corporate income tax.

Source: Zing