[Intl-tobacco] US Sup Ct rejects EU/Colombia smuggling case appeal

[robert weissman]

*High Court Nixes Tobacco Co. Tax Case
<http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2006/01/09/national/=
w080141S51.DTL>
**
*-
Monday, January 9, 2006

(01-09) 08:01 PST WASHINGTON, (AP) --

The Supreme Court refused Monday to consider whether foreign governments
can file civil lawsuits in U.S. courts to collect taxes from American
companies.

Ten members of the European Community and several political subdivisions
of Colombia had sought reinstatement of lawsuits they had filed against
several cigarette manufacturers, including R.J. Reynolds Tobacco Co.,
which is part of Reynolds American Inc., and Altria Group Inc.'s Philip
Morris Inc.

The foreign governments accused the cigarette manufacturers of knowingly
selling cigarettes to smugglers and alleged the activities were linked
to terrorism. The Colombian subdivisions =97 each similar to a state =97
also alleged that the cigarette-smuggling fueled drug trafficking and
organized crime.

The 2nd U.S. Circuit Court of Appeals affirmed a trial judge's dismissal
of the cases, which was based on a long-standing legal doctrine that
encourages American courts to stay out of foreign tax matters.

Lawyers for the cigarette companies had urged the justices to reject the
appeal, arguing that such disputes are best left to the president and
Congress to resolve. They said foreign states could circumvent treaties
with the U.S. government if they were allowed to sue in American courts.

The cases are The European Community v. RJR Nabisco Inc. and Departments
of the Republic of Colombia v. Philip Morris Inc., 05-549.