Coca-Cola Vietnam committed to full compliance with local tax rules

16:32 | 13/01/2020
After an inspection, Coca-Cola Beverages Vietnam Ltd. (Coca-Cola Vietnam) found itself in disagreement with local tax authorities on several points. Peeyush Sharma, general director of Coca-Cola Vietnam, has categorically refuted allegations of tax evasion in a recent official statement, highlighting the company's more than positive record in the country.
coca cola vietnam committed to full compliance with local tax rules
Coca-Cola Vietnam has been actively carrying out community programmes in Vietnam

Since its inception in the 1990s, Coca-Cola Vietnam has focused on investment, local job creation, economic stimulus, and shared value with local partners and customers. The company has always conducted its business in Vietnam with integrity and respect for all local laws.

Between March 2017 and March 2019, the General Department of Taxation launched an audit of the company’s tax documents from the nine years between 2007 and 2015. Coca-Cola Vietnam has co-operated fully with the General Department of Taxation by providing the required information and documentation needed for the department to conduct its audit.

During the course of the audit, the firm recognised that “certain minor errors” had been made and pointed out that it had “fully settled the required obligations.” Coca-Cola Vietnam stressed that it is committed to fully complying with all local tax requirements.

However, with respect to the vast majority of the department’s assertions, the firm “strongly maintains its position that it has operated in a compliant manner.” The firm claimed its position has been clearly expressed to the department in all documentation and explanations prepared and submitted as part of the department’s ongoing compliance efforts as well as during the tax audit.

It pledged to continue working with the Vietnamese authorities to resolve this matter, consistent with its commitment to conduct its business in Vietnam with the highest level of integrity and utmost respect for all local laws.

Peeyush Sharma stated that, “We always conduct our business in the spirit of integrity and absolute compliance with Vietnamese laws. The reputation of Coca-Cola Vietnam is very important. Thus, we will never perform fraudulent actions or tax evasion to damage our reputation. The company has actively co-operated with the tax authorities, providing information and documents as required to serve the inspection.”

coca cola vietnam committed to full compliance with local tax rules
Coca-Cola Vietnam has been recognised as the second most sustainable enterprise in the manufacturing sector for the two consecutive years of 2018 and 2019

In the statement, Coca-Cola Vietnam said it made a long-term commitment to sustainable development in Vietnam since its inception in the 1990s. The company has created an average of 2,300 direct jobs and 16,000 indirect jobs from 2016 to 2018 and provides high-quality beverage products to Vietnamese consumers.

The firm claimed to have “operated at a significant loss for more than 20 years while building its business,” but it has continued to invest and maintain strong confidence in the country’s development.

Simultaneously, Coca-Cola Vietnam has been actively participating and carrying out corporate social responsibility programmes to promote connection and support the community in Vietnam. The company has spent a large amount of its budget on sustainable development programmes.

Some of these initiatives include providing access to clean water, women's empowerment and training, supporting small- and medium-sized companies, raising the capacity of local communities, as well as promoting plastic waste management to bring about positive changes for Vietnamese people.

The efforts and practical actions of Coca-Cola Vietnam have been getting much recognition, especially its significant contribution to the state budget through tax payments in recent years. Coca-Cola Vietnam has been officially recognised as the second most sustainable enterprise in the manufacturing sector by the Vietnam Chamber of Commerce and Industry (VCCI) for two consecutive years (2018 and 2019).

At the same time, Coca-Cola Vietnam ranked second on the list of the best places to work in Vietnam. The company has been voted as one of the enterprises with the best working environment in the country in recent years.

By Thanh Van

Based on MasterCMS Ultimate Edition Ver 2.9 2020