VietNamNet Bridge - Though the taxation agency has not received official reports about the Big C Vietnam transfer deal from involved parties, it is ready to work with the parties on collecting the tax. 

Thoi Bao Kinh Te Sai Gon quoted a source from the General Department of Taxation (GDT) as saying that Casino, the old owner of Big C Vietnam, and Central Group which has bought Big C Vietnam, is obliged to contact Vietnamese agencies about the transfer deal as stipulated by law. 

“The statements made in the notices to press agencies must not be seen as a legal basis,” the source said.

After receiving official information, the taxation agency will work on the case.  

The official affirmed that taxation agency has firm legal foundation to collect tax from the deal.

Though the taxation agency has not received official reports about the Big C Vietnam transfer deal from involved parties, it is ready to work with the parties on collecting the tax.

Meanwhile, some lawyers said it would be not an easy task to collect tax in this case.

The involved parties in the transfer deals are outside of Vietnamese territory, but since Big C has income in Vietnam, the investors have to pay tax when transferring the retail chain.

The same doubts about the tax collection failure was once raised when Metro Cash & Carry was transferred by the German investor to the Thai group. However, finally, GDT could collect VND1.91 trillion worth of tax from the deal.

Tuoi Tre newspaper reported that the Vietnamese taxation body is considering whether Big C Vietnam conducted price transferring. 

GDT is inspecting the observance of tax laws at 32 supermarkets of the Big C chain; the work scheduled to finish this month-end.

The newspaper quoted a GDT’s inspector as saying that Cavi Retail (Hong Kong) is a subsidiary of French Casino Group. 

Meanwhile, Cavi Retail owns three companies, namely the Vietnam-Japan Real Estate JSC which leases retail premises to 32 Big C supermarkets, the EB Service Company Ltd in HCM City which supplies goods to 32 Big C supermarkets, and the 32 supermarkets throughout the country.

Also according to GDT, the ownership diagram updated on December 31, 2014 by Casino Guichard Perrachon at http://www.groupe-casino.fr/en/ showed that the group owns 16 legal entities in Vietnam, including the Vietnam-Japan Company and 32 Big C supermarkets, but it did not mention Cavi Retail Ltd (Hong Kong) which directly owns Big C chain.

Meanwhile, the business registration certificate in Vietnam clearly shows that Cai Retail Ltd (Hong Kong) owns 32 Big C supermarkets in Vietnam.

The lack of transparency in information exposure, plus the fact that Casino set up a company in Hong Kong, one of the ‘tax havens’, has prompted GDT to conduct a probe of Big C’s operation.

Dat Viet