The case stemmed from a tax authority ruling that Coca-Cola Vietnam had failed to declare and fulfill its tax obligations in accordance with tax laws and related regulations, despite reporting losses for many consecutive years. The General Department of Taxation—now the Tax Department—issued the assessment following a comprehensive audit launched in 2019, which reviewed Coca-Cola’s operations from 2007 to 2015.
The audit concluded that the company’s declared losses needed to be adjusted downward by more than VND762 billion. Tax officials also determined that Coca-Cola owed over VND471 billion in back taxes. When combined with penalties and late-payment interest, the total amount exceeded VND821.4 billion.
Coca-Cola Vietnam filed a complaint against the decision, but after the tax authority rejected the appeal, the company proceeded to sue the General Department of Taxation. The court heard the case on November 6 and November 27.
During the November 27 hearing, the judging panel scrutinized documents, audit records, and legal arguments presented by both parties. A representative of the People’s Procuracy affirmed that the tax agency’s assessment and penalties were grounded in law and evidence, and recommended that the court dismiss Coca-Cola Vietnam’s claim.
The court ultimately ruled in favor of the tax authority, rejecting Coca-Cola Vietnam’s lawsuit and affirming the full tax assessment and sanctions.
For years, Coca-Cola Vietnam had consistently reported substantial losses. Up to 2012, the company declared sizeable negative earnings, only beginning to report profits in 2013. Its cost declarations showed extremely high spending on raw materials—particularly flavoring agents imported directly from the parent company—which accounted for more than 70 percent of its cost of goods sold.
By the end of 2012, Coca-Cola Vietnam’s accumulated losses had reached roughly VND3.77 trillion—exceeding its initial investment capital of VND2.95 trillion.
