Coca-Cola ordered to pay more than $30 million after stunning violation — here's what's happening

While large corporations sometimes find ways around tax laws, occasionally, the bill does come due. That was recently the case for Coca-Cola Vietnam, which was just ordered to pay over $31 million in back taxes, Retail News Asia reported.

What's happening?

On December 25, 2019, Vietnam's General Department of Taxation ordered Coca-Cola to pay VND759 billion in fees and back taxes due to incorrect filings from the years 2007 through 2015. The company had claimed losses from the years 1994 through 2014, but this was inconsistent with its net revenues. The company disputed the order, filing a suit with the HCMC People's Court.

In late November, after almost six years, the lawsuit was thrown out, and Coca-Cola was ordered to pay its taxes. The total due has now risen to 821 billion Vietnamese dong ($31 billion).

Coca-Cola Vietnam has also been audited for the 2016-2017 tax year and has once again been found to have filed incorrectly.

Why is this ruling important?

While the multi-million dollar price tag of Coca-Cola Vietnam's back taxes may seem huge, it is roughly 12% of the company's 2015 revenues. Settling the bill may be painful for the company since it is doing so all at once, but it is not unreasonable.

However, it does send a message that companies can't get away with this unlawful behavior just because they are large and wealthy. 

It also helps supply the government with public funds for programs that benefit society. This helps counteract Coca-Cola's harmful legacy as Earth's largest plastic polluter.

What can I do about Coca-Cola's negative impact?

Whenever possible, choose plastic-free and eco-friendly alternatives to single-use plastic products like soft drink bottles. For example, you could fill a reusable water bottle with homemade lemonade, which is healthier and often tastes better.

Meanwhile, vote for leaders who will continue to hold large corporations accountable for following the law.

Should companies be required to help recycle their own products? Definitely 👍 No way 👎 It depends on the product 🤔 They should get tax breaks instead 💰 Click your choice to see results and speak your mind.

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