Thai court cuts tax evasion fine for Philip Morris

A Thai appeal court on Tuesday ordered a reduction to a $4 million fine imposed on tobacco giant Philip Morris for evading tax on cigarettes imported from Indonesia.

A lower court handed down the original penalty in March 2020 to the local unit of the company, which owns the Marlboro and L&M brands.

On Tuesday appeal court officials said judges had ruled the amount be lowered, with Thai customs to calculate the new fine at a later date.

The case, which began in 2017, centres on accusations the company under-declared import prices for cigarettes from Indonesia in 2002
and 2003.

The appeal court also reaffirmed a decision by the lower court to drop charges against a former Philip Morris employee. Philip Morris Thailand branch manager Gerald Margolis welcomed the reduction in the fine but said the company maintains “our position that we have done nothing wrong”.

“We will continue to evaluate the court’s decision and believe we have strong arguments for the Supreme Court to overturn the decision.”