Companies Settle Tax Evasion Charges for $50 Million

Sep.14.2022
Native American tobacco companies fined $50m for selling untaxed cigarettes in New York.

Grand River Enterprises Six Nations of Canada and Native Wholesale Supply Co. of New York have agreed to pay $50 million to settle tax evasion charges in the state of New York.


According to court documents, these two companies transported millions of unsealed cigarette boxes from Canada to New York.


Native Wholesale purchases cigarettes and tobacco products from Grand River, importing them to New York and distributing them to retailers in the state without a license. It is alleged that Grand River was aware that the cigarettes sold to Native Wholesale would be sold in New York without pre-paying state taxes through a stamp agent and without being stamped or taxed in accordance with New York law.


Hardworking New Yorkers pay taxes and multimillion dollar companies should do the same, said Letitia James, New York Attorney General, in a statement. "Regulating and taxing cigarettes is an important tool to protect public health from the deadly harms of tobacco. Today's agreement enforces New York's laws and will prevent untaxed cigarettes from flowing into the state.


In addition to paying $50 million, the two companies have also agreed to modify their business practices to prevent the sale of un-stamped cigarettes in New York in the future.


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