Pernod Ricard Battles $314 Million Tax Dispute in India Over Scotch Valuation
Pernod Ricard is embroiled in a $314 million tax dispute with Indian authorities over allegedly undervaluing Scotch whisky imports. Accusations center on the company's failure to disclose true composition and age to reduce tariff costs. Pernod denies wrongdoing and has taken the case to court.
Indian investigators have accused Pernod Ricard of deliberately concealing the age and composition of its Scotch whisky imports to reduce tariff costs, leading to a legal battle demanding $314 million in back taxes, according to newly released documents.
Pernod, known for its Chivas Regal whisky and Absolut vodka, argues it was deprived of key pricing information critical to the investigation and maintains compliance with legal channels. The firm's tax liability is nearly $600 million with penalties, a significant impact on its $2.9 billion Indian revenue.
The controversy spotlights India's hefty tariffs on alcohol imports, with Pernod denying wrongdoing and contesting its treatment compared to other importers. The company faces additional legal hurdles, including antitrust allegations and an operational ban in New Delhi.
(With inputs from agencies.)
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