Korea: Cigarette Firms Fined for Tax Evasion [08/01-1]

Excerpts from: Foreign Cigarette Firms Fined W13.2 Bil. for Tax Evasion

The Korea Times [07/31/03]

Three major foreign cigarette makers have been ordered to pay 13.2 billion won in penalty taxes for alleged tax evasion.
BAT Korea, Philip Morris Korea and JTI Korea were alleged to have deflated import prices in an attempt to pay less tax, according to the tax office.

The three got fines of 3-5.5 billion won for tax dodging between July in 2001 and June this year. The firms underreported import costs by excluding packaging, transportation and advertising fees, the tax office said.

The tax evasion comes after South Korea decided to raise tariffs by 10 percentage points each year from July in 2001 to 40 percent.

This information is presented as a public service by:

Action on Smoking and Health (ASH)
2013 H Street NW / Washington, DC 20006 / (202) 659-4310
A national nonprofit, scientific and educational organization founded in 1967.
All donations are fully tax deductible.

Material on this page may be freely reproduced, distributed, and circulated
with attribution given to Action on Smoking and Health.

Dedicated to Mr. and Mrs. Warren Wells