METRO Cash & Carry Vietnam (MCC) will have to pay 507 billion VND(23.8 million USD) 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 theministry had finished its two-month-long inspection and examination ofprice transfers at Metro Vietnam. They had found several violations atthe firm.
The company began operations in Vietnam in 2002 with aninitial investment capital of 78 million USD. During that time, the MCCalmost always reported losses, saying it had failed to recover itsinvestment capital and costs. During its 12 years of operations inVietnam, the company reported a profit only once in 2010 of 116 billionVND (5.5 million USD).
Last August, the MCCannounced its plan to sell Metro Vietnam for 800 million USD to aninvestor from Thailand. However, the business transaction has not beensettled yet.
Metro Vietnam was one of severalforeign 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, the MCCannounced that it had closely cooperated with the tax authority and hadbeen made aware of the results of its audit of the corporation.
"In Vietnam, as in any other market where METRO Cash & Carryoperates, we strictly comply with local laws and regulations and operateas responsible corporate citizens, contributing continuously to thelocal economic growth and community development," the company's pressrelease said.-VNA
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 theministry had finished its two-month-long inspection and examination ofprice transfers at Metro Vietnam. They had found several violations atthe firm.
The company began operations in Vietnam in 2002 with aninitial investment capital of 78 million USD. During that time, the MCCalmost always reported losses, saying it had failed to recover itsinvestment capital and costs. During its 12 years of operations inVietnam, the company reported a profit only once in 2010 of 116 billionVND (5.5 million USD).
Last August, the MCCannounced its plan to sell Metro Vietnam for 800 million USD to aninvestor from Thailand. However, the business transaction has not beensettled yet.
Metro Vietnam was one of severalforeign 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, the MCCannounced that it had closely cooperated with the tax authority and hadbeen made aware of the results of its audit of the corporation.
"In Vietnam, as in any other market where METRO Cash & Carryoperates, we strictly comply with local laws and regulations and operateas responsible corporate citizens, contributing continuously to thelocal economic growth and community development," the company's pressrelease said.-VNA
