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.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
