Diageo ordered to pay 206.4 bln won in unpaid taxes

SEOUL, Jan. 14 (Yonhap) -- South Korea's customs agency said Wednesday it has ordered the local unit of Diageo Plc, the world's top liquor company, to pay 206.4 billion won (US$153.1 million) in unpaid taxes for allegedly misrepresenting the prices of its products.

"We sent the company an official letter, informing that it has to pay the taxes,"
said an official at the Korea Customs Service. "Diageo appealed and a meeting
will be held in late January or early February to review whether the fine is
appropriate."
Diageo officials could not be reached for comment.
The customs service said Diageo has gained undue profits by misrepresenting the
prices of liquor imports since 2004. The tax order, which includes unpaid tax and
penalties, is the largest ever slapped on a single liquor producer.
The British-based liquor firm produces Johnnie Walker and is the largest whiskey
seller in South Korea with a market share of 41 percent. Last year, the company
posted 450 billion won in sales.
Last year, Diageo was reissued a license to import liquor products to Korean
after it was canceled in 2007 for allegedly trading with unlicensed partners.
kokobj@yna.co.kr
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