Big C Vietnam pays off $93 million tax arrears
Big C Vietnam pays off $93 million tax arrears
Big C Vietnam, representing its new owner Central Group, has paid off the whole VND2.034 trillion ($93 million) it declared in tax earlier.
The tax amount was incurred from the transfer of ownership over Big C Vietnam from French Groupe Casino to Thai Central Group in April this year. This is the largest sum the Vietnamese tax authorities have ever collected from a capital transfer. Earlier, German company METRO Group paid VND1.9 trillion ($85.25 million) in tax after the sale of METRO Cash & Carry Vietnam to Thai company TCC.
The tax authorities previously estimated the tax bill at VND3.6 trillion ($165 million). Currently, they are inspecting the retailer’s compliance with tax laws, to check whether the declaration of the lower tax bill was illegal. Meanwhile, affiliated relationships in the trading activities of Big C Vietnam and its partners have triggered investigations into transfer pricing.
At the end of April, Central Group paid $1.14 billion to Groupe Casino to take over Big C Vietnam. The retail chain has a network of 43 stores and 30 shopping centres and achieved a net sales of €586 million ($666 million) in 2015.
The General Department of Taxation is in the process of drafting a decree on preventing transfer pricing and tax evasion.
