The Amsterdam Court of Appeal Has Oversurned a Fine of 106 Million Euros for the British Tobacco Company British American Tobacco. Previously, a Lower Court had impressed the fine because the company was Said to have deliberately paid too little tax.
The Court Has Overturned the Fine of 106 Million Euros for British American Tobacco (BAT), The Court Writes. The Reason is that the tax authorities have not leg able to prove “that the tax return at this point was intentionally incorrect.”
The Fine was imposed on the manufacturer of Lucky Strike and Dunhill, Among Other Brands, in December 2023. The Tax Authorities, which Brought the Case, Felt that bat should have had more tax and argued that the company shifted profits.
Dutch Business Units of Bat would have paid too much for varous services from foreign units from 2008 to 2016, which reduced the profit and therefore the profit tax. The Court Agreed with this in 2023, but the court of appeal is now overturning that Ruling.
The Court of Appeal Does Agree With The Tax Authorities That Bat Should Have Paid More Tax. Accordance to the highher court, this must be done on 1.9 Billion Euros of Profit. A fine of 2 Million Euros Will also Remain in place for excessive costs paid to a Belgian Company.