Jump to full article: AP, 2009-09-03
Author: AMBIKA AHUJA
Intro: Thai police have submitted a case to state prosecutors charging that the local arm of Philip Morris, the world's largest cigarette maker, evaded more than $2 billion in import taxes, an allegation strongly denied by the company.
Police Col. Thawatchai Suansida said Thursday that the Department of Special Investigation, or DSI, determined that Philip Morris (Thailand) United Co. Ltd. had underreported the value of its imports and underpaid import taxes between 2003 and 2007.
The same matter, concerning cigarettes exported by a Philip Morris plant in the Philippines to Thailand, is the subject of a trade dispute.
Manila in November last year filed a complaint with the World Trade Organization claiming that Thailand's tariffs on the cigarettes are not calculated according to internationally accepted standards. A preliminary report from the trade organization is expected to be circulated to the parties involved early next year.
The office of Thailand's attorney-general, which received the tax evasion case on Wednesday from the police, said it will decide on Oct. 2 whether to bring it to court.
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