Tax-evasion lawsuit to proceed against Philip Morris

[webfact]

Tax-evasion lawsuit to proceed against Philip Morris

By The Nation

 

Piyasakol Sakolsatayadorn

 

PUBLIC Health Minister Piyasakol Sakolsatayadorn assured yesterday that a lawsuit against a leading tobacco firm over tax-evasion charges would continue as normal.

 

“Legal proceedings have already begun and will continue,” Piyasakol said when asked about Foreign Minister Don Pramudwinai reportedly asking the PM to put the brakes on the lawsuit. 

 

The government is suing Philip Morris for evading taxes worth Bt60 billion by allegedly declaring that a pack of cigarettes is sold for Bt7, when in reality a pack of cigarettes is sold for Bt145. 

 

Dr Hatai Chitanondh, who chairs the Thailand Health Promotion Institute, said last week that the government has solid evidence against the tobacco firm. He also said that the government should not worry about the complaint Manila has filed with the World Trade Organisation (WTO) in relation to Thailand’s Customs and Fiscal Measures on cigarettes from the Philippines. Philip Morris has a large manufacturing plant in the Philippines. 

 

“The dispute filed with the WTO will not result in a fine,” he said. 

 

He was speaking in response to reports that Don had written a confidential letter to Prime Minister Prayut Chan-o-cha raising concerns about the dispute at the WTO and asking the premier to suspend the lawsuit in the hope of settling the matter out of court. 

 

Vasin Pipattanacha, an assistant director of the Tobacco Control Research Centre at Mahildol University’s Faculty of Medicine Ramathibodi Hospital, said Thailand was obliged to comply with the World Health Organisation on the Framework Convention on Tobacco Control.

 

“So, we can’t just focus on the WTO complaint,” he said.

 

Source: http://www.nationmultimedia.com/detail/national/30370083

 

-- © Copyright The Nation 2019-05-28

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[ChrisY1]

This could be interesting...more so that Don asked the government not to proceed....maybe some naming may occur.

[Basil B]

1 hour ago, webfact said:

 

“Legal proceedings have already begun and will continue,” Piyasakol said when asked about Foreign Minister Don Pramudwinai reportedly asking the PM to put the brakes on the lawsuit. 

No points for guessing who maybe involved...

Quote

Tobacco companies have moved swiftly to strengthen their grip on Washington politics, ramping up lobbying efforts and securing significant regulatory wins in the first six months of the Trump era.

Day one of Donald Trump’s presidency started with tobacco donations, senior figures have been put in place within the Trump administration who have deep ties to tobacco, and lobbying activity has increased significantly.

https://www.theguardian.com/world/2017/jul/13/tobacco-industry-trump-administration-ties

 

Maybe Don should read this...

As a 60 year old I recall how Multi international Tobacco firms tried to distort the evidence that tobacco was harmful.

[Pedrogaz]

Well, if true, then this is good news. There is no doubt about Philip Morris's guilt...all big US corporations cheat on their taxes. It is time someone called them out on it, but surprising, in a good way, that Thailand should be the one to do it. Maybe Thailand see the opportunity to defy the US on small issues by using the Chinese as a bargaining chip.

[Fex Bluse]

23 minutes ago, Pedrogaz said:

Well, if true, then this is good news. There is no doubt about Philip Morris's guilt...all big US corporations cheat on their taxes. It is time someone called them out on it, but surprising, in a good way, that Thailand should be the one to do it. Maybe Thailand see the opportunity to defy the US on small issues by using the Chinese as a bargaining chip.

I suspect it's more likely that the government is looking anywhere possible for money.

 

Seem to be proposing many schemes, mainly targeting foreigners:

 

1. Retirement visa funds locked up in bank longer

2. Expat insurance 

3. Tourist insurance 

 

I suppose it's smart to go after foreigners as Thais, as a group, pay very little official taxes. 

Edited May 28, 2019 by Fex Bluse

[AI5AASIA]

This was never about deaths or disease caused by smoking. 

This a Customs DSI matter stemming from 2009, I understand that the local tobacco manufacturers TTM also weren't happy about the competition and Philip Morris fell under the special investigation, couple that and the fact that at that time many companies from a range of different products & Industry, were suddenly found to be of special interest to Customs DSI. If a good investigative journalist was to do a bit of research, especially with how the tax collection receipts went to budget, even though the world including Thailand was in the midst of a recession... Some may remember the Democrat government tried to reform the Thai Customs most powerful tool. That being available to use against anyone who dared to challenge their rulling and go to court. The fine that must be applied to the party found guilty, even if only a 3% under report, or mistake in HTS code giving a 5% rate of import duty instead of 8%. The attempt to reform was to change to a minimum penalty of 0.5% to maximum 400% instead of the then fixed 400% of the price of the goods (which includes the duty) which was payable. Philip Morris was one of the few companies that were big enough to challenge the charges in court rather than having to sit down and negotiate a settlement with the DSI. 

In 2017 The New Act (Customs Act B.E. 2560) 

A very much relaxed, for those found guilty of Duty evasion, came into force. Now the court can order the penalty of 0.5 to 4 times, the amount of the duty shortfall. Same prison terms (not exceeding 10 years) are applicable.

 

Additionally there's the change that the Comission paid to a Customs officer and whistle-blower, is now limited to Baht 5 million per case....

 

[DrTuner]

2 hours ago, Pedrogaz said:

Maybe Thailand see the opportunity to defy the US on small issues by using the Chinese as a bargaining chip.

I hope so, so it gets Donald's attention and Thailand ends up in the sanction room. Side with Chinese, suffer the consequences.