[Intl-tobacco] Italy: Philip Morris May Face Tax Charges (fwd)

[Robert Weissman]

Philip Morris May Face Tax Charges
Source: AP, Saturday, 1/13/01

Saturday, Jan. 13, 2001; 12:08 p.m. EST

ROME –– Prosecutors in Italy are expected to seek an indictment of Philip
Morris after finishing their investigation of whether U.S. tobacco giant
evaded taxes on billions of dollars of revenue, Italian newspapers
reported Saturday.

In 1996, Naples prosecutors alleged that Philip Morris unfairly took
advantage of lower tax rates reserved for companies without a direct
Italian subsidiary, an accusation the company has insisted is unfounded.

The probe was later moved to Milan.

Rome daily La Repubblica reported that prosecutors suspect the tobacco
giant evaded Italian taxes on some $3.5 billion in revenue in the years
1990-1996.