MOF says Intel did not evade paying taxes

Friday, Dec 20, 2013 18:47

Deputy Minister of Finance Do Hoang Anh Tuan said that Intel Products Viet Nam Co., Ltd followed the tax laws. The statement was made after HCM City People's Committee listed the company in an official document to petition for capital transfer management. Photo

HA NOI (Biz Hub) — Deputy Minister of Finance Do Hoang Anh Tuan said on Thursday that there was no evidence that Intel Products Viet Nam Co., Ltd had intentionally not paid its taxes.

On December 5, HCM City People's Committee submitted Document No 6450 to the Ministry of Finance (MOF) to create regulations to manage taxes in capital transfers and franchising. The committee listed some cases of enterprises, including Intel Asia Holding Limited company, transferring ownership to another firm in the same group with the price of US$100 million, which was equal to the cost price.

Talking with VietNamNet online newspaper, Tuan confirmed that Intel was a high technology manufacturing enterprise, playing an important role in Vietnam's economic development.

"The MOF statistics show that the revenue growth of Intel is quite good and the company enumerates its profits clearly. This is one of enterprises following the law on taxes," he said.

Regarding its capital transfer, he said the transfer was made to restructure its operation to enhance the business efficiency of the corporation.

"Its holding company in the US established a firm in the Netherlands, and then the Dutch enterprise founded Intel Hong Kong. The Hong Kong company later opened Intel Viet Nam. When its affiliate in Viet Nam is strong enough, it will belong entirely to the Dutch owner. In other words, the transfer is to change the owner of Intel Viet Nam. I think it is a positive trend because it raises the position of Intel Viet Nam in correspondence with its growth speed," he said.

"Moreover, before completing the transfer, the corporation consulted the city's People's Committee vice chairman Le Manh Ha and asked for opinions from the hi-tech park's management board."

Tuan also said that the remaining cases on the list would be investigated to verify the information, such as Pho 24 brand's transfer to Viet Thai International Joint Stock Company.

Earlier, Intel Products Viet Nam general director Sherry Boger told Nhip Song So online magazine that news reports about Intel evading taxes was incorrect, and adversely affecting the reputation of the corporation. — VNS

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