Unilever denies tax-dodging charges

November 17, 2018 | 08:00
Despite the taxes being cut from VND800 billion ($34.78 million) to nearly VND600 billion ($26 million), Unilever Vietnam continues to express dissatisfaction with the State Audit Office of Vietnam’s (SAV) proposal.
unilever denies tax dodging charges
Unilever disputes the SAV's $26 million tax bill based on a difference between Vietnamese legislation

Speaking at the National Assembly on November 15, Ho Duc Phoc, auditor general of the SAV, mentioned Unilever Vietnam as a highlight example of tax evasion in past years.

Unilever Vietnam’s tax issues began in 2016 when the Ho Chi Minh City Tax Department officially released a decision to collect nearly VND800 billion ($34.78 million) in tax arrears from Unilever Vietnam, but the company has not agreed with the charge at all. Since then, the two sides have been working to clarify the issue, during which the figure was revised to VND600 billion ($26 million).

vnexpress.net quoted Tran Vu Hoai, vice president of Unilever Vietnam’s Sustainable Business and Communications, as saying that the problem comes from a difference between the Law on Investment and the Law on Corporate Tax Income (CIT) before 2014, leading to troubles related to CIT regarding its expansion projects in 2009-2013.

“This difference in the point of law is the main reason behind the misunderstanding,” added Hoai.

Affirming that the company has always been ready to co-operate with local authorities, Hoai stated that the problem is being resolved by the Ministry of Planning and Investment, the Ministry of Finance, and other authorities.

By Van Anh

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional