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Metro chain to pay $24m for tax law violations

Update: April, 22/2015 - 08:25

A corner of Metro Ha Dong in the capital city's western area. — Photo horea.org.vn

HA NOI (VNS) — METRO Cash & Carry Vietnam (MCC) will have to pay VND507 billion (US$23.8 million) as additional tax to the State budget.

The additional tax amount includes the deduction of value-added tax refund and business income.

A finance ministry official was quoted by VnExpress.net as saying the ministry had finished its two-month-long inspection and examination of price transfers at Metro Vietnam. They had found several violations at the firm.

The company began operations in Viet Nam in 2002 with an initial investment capital of $78 million. During that time, the MCC almost always reported losses, saying it had failed to recover its investment capital and costs. During its 12 years of operations in Viet Nam, the company reported a profit only once in 2010 of VND116 billion ($5.5 million).

Last August, MCC announced its plan to sell Metro Vietnam for $800 million to an investor from Thailand. However, the business transaction has not been settled yet.

Metro Vietnam was one of several foreign direct investment businesses, showing signs of price transfers, which were investigated by the taxation department last year.

In a press release sent to the local media on April 21, MCC announced that it had closely co-operated with the tax authority and had been made aware of the results of its audit of the corporation.

"In Viet Nam, as in any other market where METRO Cash & Carry operates, we strictly comply with local laws and regulations and operate as responsible corporate citizens, contributing continuously to the local economic growth and community development," the company's press release said. — VNS

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