Thai prosecutor charges Philip Morris Thailand in cigarette imports case

[webfact]

Thai prosecutor charges Philip Morris Thailand in cigarette imports case
BY AMY SAWITTA LEFEVRE AND AUKKARAPON NIYOMYAT

BANGKOK: -- Thailand's prosecutor has charged the local unit of Philip Morris International of under-reporting the value of imported cigarettes, which led to tax revenue losses of about 20 billion baht ($551.27 million), the attorney-general said.

The case involves cigarettes imported by Philip Morris Thailand from the Philippines between 2003 and 2007, the prosecutor told reporters. In addition to the company, seven Thais were also charged, as well as four foreigners who were outside the country, they added.

A court will hear the case on April 25. If convicted, the company will have to pay 80 billion baht in damages, and each defendant faces up to 10 years in prison.

Full story: http://www.reuters.com/article/us-thailand-tobacco-idUSKCN0UX099


-- Reuters 2016-01-19

[Pib]

I expect the Thailand Tobacco Monopoly (state run) is pushing this hard in the background to eliminate competition....see below Wall St article.

http://www.wsj.com/articles/SB898106482668990000

[Bluespunk]

A cigarette company lying?

shock, horror.

Not.

Edited January 19, 2016 by Bluespunk

[thesetat2013]

Wow! And this happened 2003 to 2007! I wonder if they will claim the bribe money they paid out to allow so many imports into the country without anyone being the wiser?

[webfact]

OAG formally charges Philip Morris for 20 billion baht tax evasion



BANGKOK: -- The Office of the Attorney-General (OAG) said today it has filed a lawsuit against the American tobacco and cigarette giant Philip Morris International Inc's Thailand unit, accusing eight of the company's foreign and Thai executives of false declarations of its imports and of the evasion of duties and import taxes.

The alleged tax evasion dated back to 2003.

Spokesman of the OAG Lt Somnuek Siengkong said at a press conference today that the case was brought before the criminal Court yesterday against the Thai subsidiary, Philip Morris (Thailand) Ltd for a total of 272 offences which the eight defendants committed since July 2003 to June 2006.

The lawsuit named eight defendants including a foreign and Thai executives. They included Philip Morris manager Troy Modlin.

The offences they committed related to false declaration of true value of cigarette imports with intent to evade taxes. The evaded taxes and duties amounted to 20.21 billion baht in tax evasion, he said.

Besides, he said the the Customs Law also states clearly of intentional tax evasion is subject to a fourfold fine of the evaded tax plus the value of the imports or a 10-year imprisonment, or both.

He said the Criminal Court has accepted the lawsuit for trial with the first hearing set on April 25 at 9.00 am.

Meanwhile the deputy attorney-general Mr Chartpong Chiraphand said the Criminal Court had earlier issued warrants for the arrest of four foreign executives of the cigarette company who are still at large.

He said the case against the foreign executives has a statute of limitation of 15 years and until now it has five years remaining before it expires.

He was confident that if these foreign fugitives could be apprehended within the remaining period, they would be brought for trial before the court.

The global tobacco and cigarette giant’s Thailand unit faces criminal charges over allegations that it underreported the value of cigarette imports to the Asian nation for years and thereby avoided about $2 billion in duties and import taxes.

But it denied the accusations from the Thai government’s Department of Special Investigations, which alleged that back in 2009, company subsidiary Philip Morris (Thailand) Ltd. didn’t declare the true value of its imports.

Source: http://englishnews.thaipbs.or.th/content/147257


-- Thai PBS 2016-01-19

[colinneil]

Maybe somebody forgot the BIG brown envelope.

[aRobotnamedWAR]

OAG formally charges Philip Morris for 20 billion baht tax evasion

BANGKOK: -- The Office of the Attorney-General (OAG) said today it has filed a lawsuit against the American tobacco and cigarette giant Philip Morris International Inc's Thailand unit, accusing eight of the company's foreign and Thai executives of false declarations of its imports and of the evasion of duties and import taxes.

The alleged tax evasion dated back to 2003.

Spokesman of the OAG Lt Somnuek Siengkong said at a press conference today that the case was brought before the criminal Court yesterday against the Thai subsidiary, Philip Morris (Thailand) Ltd for a total of 272 offences which the eight defendants committed since July 2003 to June 2006.

The lawsuit named eight defendants including a foreign and Thai executives. They included Philip Morris manager Troy Modlin.

The offences they committed related to false declaration of true value of cigarette imports with intent to evade taxes. The evaded taxes and duties amounted to 20.21 billion baht in tax evasion, he said.

Besides, he said the the Customs Law also states clearly of intentional tax evasion is subject to a fourfold fine of the evaded tax plus the value of the imports or a 10-year imprisonment, or both.

He said the Criminal Court has accepted the lawsuit for trial with the first hearing set on April 25 at 9.00 am.

Meanwhile the deputy attorney-general Mr Chartpong Chiraphand said the Criminal Court had earlier issued warrants for the arrest of four foreign executives of the cigarette company who are still at large.

He said the case against the foreign executives has a statute of limitation of 15 years and until now it has five years remaining before it expires.

He was confident that if these foreign fugitives could be apprehended within the remaining period, they would be brought for trial before the court.

The global tobacco and cigarette giant’s Thailand unit faces criminal charges over allegations that it underreported the value of cigarette imports to the Asian nation for years and thereby avoided about $2 billion in duties and import taxes.

But it denied the accusations from the Thai government’s Department of Special Investigations, which alleged that back in 2009, company subsidiary Philip Morris (Thailand) Ltd. didn’t declare the true value of its imports.

Source: http://englishnews.thaipbs.or.th/content/147257

-- Thai PBS 2016-01-19

WHAT ABOUT SIAM BEV?

[Bluespunk]

Nice picture...almost looks like one of them is rubbing his hands in glee at the amount of money coming his the OAG's way...

Edited January 19, 2016 by Bluespunk

[WitawatWatawit]

Where there's smokes, there's fire.

I'm not holding my (cough, cough) breath, but perhaps this might be the perfect time for the OAG and the auditors department to run a fine tooth comb over the Customs Dept. I find it hard to believe they are not complicit in some way, as this dept (discussed many times before on TV) has a poor reputation for judging what is dutiable and what is not, and bending the rules whenever it suits. Like other posters, I believe there are underhand dealings here.

BTW, if the motions have been filed with the court, why aren't the executives being named? Let justice be seen to be done.

[kinmaew]

its probably related to corruption but in any case I could not care suffer A holes PM your product is disgusting and ruining the (weak) people on this planet which has an adverse impact on everyone else who has to pay their bloody public health bill because they love their "Ciggies"

[elgordo38]

Wow! And this happened 2003 to 2007! I wonder if they will claim the bribe money they paid out to allow so many imports into the country without anyone being the wiser?

Are bribes tax deductible??

[Srikcir]

Reuters article:

"A 2010 ruling by the World Trade Organization said that Thailand had no grounds to reject the import price of cigarettes from the Philippines, and Thailand has previously lost a case over the issue.

The Philippines has complained that a series of domestic taxation and customs valuation by Thailand that started in 2006 had undermined the competitiveness of its cigarettes against those produced by the state-controlled Thailand Tobacco Monopoly."

To again attempt to prosecute the pricing issue now is pure protectionism and alarmingly contrary to the ASEAN Community trade agreement. Thailand is fast becoming an economic scourge and foreign companies need to carefully consider the increased risks of doing business now in Thailand where enforcement of laws is becoming nefarious and arbritary.

[SOTIRIOS]

....foreigners get screwed over....then get screwed over again......