Vietnam: Heineken Tax Scheme Exposed
A new tax scheme of Heineken is exposed in Vietnam.
Singapore based Heineken Asia Pacific Pte. Ltd struck a deal with Heineken Vietnam Brewery in late 2018, which was valued at over VND4.8 trillion ($207.7 million). Under the deal, the Singaporean firm transferred its entire stake in its Vietnamese subsidiary to Heineken Vietnam Brewery.
The tax payable for the deal was VND823 billion ($35.6 million). However, arguing the double taxation agreement signed by the governments of Vietnam and Singapore, Heineken Asia Pacific claimed it was exempt from paying the taxes.
Recently, the General Department of Taxation ruled that the tax had to be paid because the real estate value in the deal was over 50% of the assets involved in the deal.
Heineken Vietnam Brewery had to pay VND917.2 billion ($39.7 million) in back taxes and fines for this deal.
This is not the first time Heineken was accused of tax schemes.
- The book “Heineken in Africa” details cases of tax evasion by Heineken subsidiary Ibecor.
- Heineken was also exposed working with dictators to “relax” their “tax burden” in African countries.
- In early 2019 Heineken Korea was under investigation for tax schemes.
Heineken’s unethical business practices go beyond tax schemes, including, racism, exploitation of women and unethical marketing.
The Book, “Heineken in Africa” by journalist Oliver van Beemen, lists evidence of the beer giant’s business malpractice in the African region. The list includes – but is not limited to – support of the apartheid regime, complicity in genocide, support for authoritarian regimes and collaboration with rebel groups, exploitation of young women and sexual abuse.