We don’t evade taxes:
Coca-Cola vice chief
Tuoi Tre
For illustration purpose only.Tuoi Tre
After meeting with the Ministry of
Planning and Investment and the Ministry of Industry and Trade of Vietnam on
June 6th, Irial Finan, Coca-Cola Co’s Executive Vice President,
and Clyde C. Tuggle, Senior Vice President cum Chief
Public Affairs and Communications Officer, held an interview with the
press about transfer pricing, which the firm is believed
to have used for many years.
According to Mr. Tuggle, he is here to find a way for
Coke to become a socially responsible enterprise in
“We have done business for 127 years in over 200
markets. Like other companies, our purpose is to make profit, which we have
done successfully in other markets, but not in
Why is Coca-Cola
Mr. Tuggle said, “In terms of finance, we affirm that
we have never made any profits in
That is what we do to achieve great success over time.
We believe that if we always do things right and build trust among
communities, we will win.”
Moreover, Mr. Finan said, “We are still investing
because we believe in the potential of the Vietnamese market, which is in the
first period of soft drink manufacturing development. In addition, profits
can only be reached after building a strong base via investments. We believe
with a stronger foundation, Coca-Cola
When will Coca-Cola
“Yes, and I know all of you also want that. Investing
Actually, US$200 million would be ble to return profits. However, we need to
strengthen our foundations, such as brand name and infrastructure, for sure.
Therefore, Coca-Cola
Could you give a more exact time than
‘in a few years’?
“Everyone, including us, wants to know the exact time.
However, as businessmen, we are trying to build the foundations first.
Furthermore, our business depends on the country’s economy”, Mr. Finan
explained.
“We always abide by the local laws of every country we
are present in. This means we always report our business activities and pay
all taxes in every country whenever we have profits”, he added.
What do you think about the
suspicion that Coca-Cola
Mr. Finan answered, “Actually we have paid lots of
taxes in
Prestige and the brand name are the most important
things and we certainly don’t want to damage them. Therefore, from the
viewpoint of businessmen, why would we avoid paying taxes when we want to do
long term business in
During your meetings with Vietnamese
authorities, did anyone ask you about this issue, and what did they ask?
“I don’t want to talk about the meetings. I don’t know
why this issue has becomes a problem. We always obey the local laws, not only
in other countries but also in
Mr. Tuggle asserted, “I strongly affirm that Coca-Cola
Vietnam didn’t use transfer pricing to evade taxes, and we’d better stop
discussing this issue here. In the meetings, Vietnamese authorities advised
us to improve our communication system. Perhaps, we didn’t make it strong
enough to avoid this accusation.
The Coca-Cola brand name, which took us 127 years to
build, is valued at up to US$80 billion, and is the most valuable brand name
in the world. Why should we lose it in a second? We certainly know that
everything will be ruined if we don’t observe the local laws.”
The G8 group believes that countries
should charge taxes on the total revenue of multinational corporations. What
do you think about this suggestion? Has Coca-Cola considered this issue?
Mr. Tuggle replied, “No. To collect taxes all over the
world, we must have a global government and a global tax office. Therefore,
this is just an idea on paper.
You did say that you are providing jobs for 2,000
Vietnamese. Would you please share their labor cost and wages?
“There are many positions. How can I tell an exact
number for all of them? There are many ways to calculate salaries. Therefore,
companies are separated into groups according to their salary level.
Coca-Cola is always listed as a company that pays salaries that are above
average,” Mr. Finan replied.
“The labor cost in developing countries is lower than
in developed ones. As a result, the labor productivity in developing
countries is also lower. Workers loading and unloading packages, for example,
are less productive than the ones in other countries. However, every
Coca-Cola factory is built to the same standards, wherever they are.
Therefore, excess capacity sometimes also increases costs and causes losses”,
he added.
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Chủ Nhật, 9 tháng 6, 2013
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