Former BAT Korea CEO Acquitted in Second Trial on Charges of Evading $36.51 Million Taxes

BAT by 2FIRSTS.ai
Apr.29.2024
Former BAT Korea CEO Acquitted in Second Trial on Charges of Evading $36.51 Million Taxes
Former CEO of British American Tobacco Korea, Guy Andrew Meldrum, acquitted of tax evasion charges in Seoul's High Court.

According to a report from South Korean media N.News on April 25th, Guy Andrew Meldrum, former CEO of British American Tobacco Korea, who was accused of falsely declaring and smuggling a large quantity of cigarettes out of the country on the day before a tax increase to evade taxes, was acquitted by the Seoul High Court in his second trial.

 

The Seoul High Court, Criminal Division 5, handed down the above-mentioned judgment against the former CEO of BAT for violating the Specific Crimes Aggravated Punishment Act (tax evasion). The court stated, "In this case, although property transfer and cigarette transportation were carried out separately, it cannot be concluded that it was a sham transaction." They emphasized, "Without being able to determine the defendant's intentions of tax evasion and other reasons, the acquittal in the first trial is acceptable."

 

According to reports, on December 31, 2014 (the day before the cigarette tax increase), Mel Drum was accused of smuggling 24.63 million packs of cigarettes out of the South Gyeongsang Sichuan cigarette factory and making false declarations. He was sentenced in April 2019. Prosecutors believe that this action exploited the fact that cigarette taxes are levied based on the number of cigarettes at the time of factory delivery.

 

Prosecutors believe that he is suspected of evading taxes totaling 503 billion South Korean won ($36.51 million), including 146 billion South Korean won ($10.59 million) in national personal consumption tax, 248 billion South Korean won ($18 million) in local tobacco consumption tax, and 109 billion South Korean won ($7.91 million) in local education tax. Despite being acquitted in the first trial, prosecutors have continued to express doubts about this.

 

It is reported that Meierdrum had left the country before the investigation by the National Tax Bureau, and the first trial did not begin until April of last year. The former production and logistics manager of the company, who was also being tried in the same case, was acquitted by the Supreme Court in November 2022.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Australian authorities seize $30,000 worth of illegal e-cigarettes in Melbourne crackdown
Australian authorities seize $30,000 worth of illegal e-cigarettes in Melbourne crackdown
The Therapeutic Goods Administration (TGA), in cooperation with Victoria Police, seized illegal e-cigarettes worth approximately AUD 40,000 (about USD 30,000), along with illegal tobacco and cash, from a retail store in a prime location of Melbourne’s central business district. The store is suspected of violating relevant laws. Australia imposes strict penalties for illegal e-cigarettes, and since July 1, 2024, e-cigarettes may only be sold through pharmacies, with all advertising considered ill
Aug.14 by 2FIRSTS.ai
UK Shopkeeper Fined for Selling Illegal Vapes as Council Warns of Jail Time
UK Shopkeeper Fined for Selling Illegal Vapes as Council Warns of Jail Time
A North Yorkshire retailer and its director were convicted for selling over-strength and improperly labelled vapes, prompting a warning from trading standards that selling illegal vaping products could lead to fines or imprisonment.
Sep.09
Australian police raid seizes over 26,000 illegal e-cigarettes, case valued at $850,000
Australian police raid seizes over 26,000 illegal e-cigarettes, case valued at $850,000
The illegal tobacco task force led by the Australian Border Force recently dismantled one of the largest illegal tobacco gangs in the country. Law enforcement officers seized more than 26,000 e-cigarette devices and accessories, as well as 7 liters of e-liquid, with a total value of approximately US$850,000.
Aug.28 by 2FIRSTS.ai
Malaysia Considers Implementing Stricter Measures on E-Cigarettes Amid Rising Usage, Following Singapore's Model
Malaysia Considers Implementing Stricter Measures on E-Cigarettes Amid Rising Usage, Following Singapore's Model
Malaysian public health experts and organizations are calling on the government to follow Singapore's lead in treating e-cigarettes as a drug issue and implementing stricter penalties to curb the surging use among teenagers. An official from the Penang Consumers' Association pointed out that many e-cigarettes contain the addictive substance etomidate, the misuse of which could endanger health. He criticized young people, especially females, for being nonchalant about the dangers of e-cigarettes.
Aug.21 by 2FIRSTS.ai
Company | British American Tobacco launches "Vapers Deserve Better" campaign in the UK, calling for mandatory testing and retail licensing
Company | British American Tobacco launches "Vapers Deserve Better" campaign in the UK, calling for mandatory testing and retail licensing
British American Tobacco UK (BAT UK) announced the launch of its "Vapers Deserve Better" campaign this week, emphasizing the need for a responsible regulatory framework to combat non-compliant operators who ignore regulations and quality standards. The campaign advocates for mandatory pre-market testing, a national retail licensing system, and stricter penalties for offenders.
Sep.29 by 2FIRSTS.ai
Northfield, Minnesota, Proposes Flavored Tobacco Ban; City Council Votes 6–1 to Send Proposal Back for Review
Northfield, Minnesota, Proposes Flavored Tobacco Ban; City Council Votes 6–1 to Send Proposal Back for Review
The City Council of Northfield, Minnesota, has discussed a proposal to ban flavored tobacco products, citing concerns over youth tobacco use. While advocates stress the public health benefits, opponents warn of potential harm to small businesses.
Aug.15 by 2FIRSTS.ai