HCMC Court Dismisses Coca-Cola Vietnam’s Lawsuit Against Tax Authority, Upholds VND 821 Billion Tax Claim and Penalty

Following a comprehensive audit initiated in 2019, covering the period from 2007 to 2015, it was determined that Coca-Cola Vietnam’s reported losses required adjustment. The company’s declared losses were reduced by over 762 billion VND. Tax authorities also concluded that the company owed an additional 471 billion VND in taxes, along with penalties and late payment fees, totaling over 821.4 billion VND.

Tax authorities alleged that Coca-Cola Vietnam failed to declare and fulfill its tax obligations as required by law, despite consistently reporting losses over several years. After administrative appeals were denied, Coca-Cola Vietnam filed a lawsuit.

The trial commenced on November 6th and continued on November 27th. During the proceedings, the court reviewed documents, evidence, audit reports, and arguments from both parties. Representatives from the Procuracy asserted that the tax authority’s decision was legally sound and recommended dismissing Coca-Cola Vietnam’s claim. Ultimately, the court upheld the tax assessment and penalties.

Following the verdict, Coca-Cola Vietnam stated its respect for the legal process and the decision of the Ho Chi Minh City People’s Court. The company is consulting with legal advisors to determine its next steps, while reaffirming its commitment to fully comply with tax regulations and Vietnamese law.

“Our operations in Vietnam align with Coca-Cola’s global business principles, adhering to recognized ethical standards and industry practices. This includes the legitimate use of deductible business expenses,” Coca-Cola Vietnam emphasized.