India Accuses Pernod Ricard of 314 Million Dollar Tax Evasion
Indian investigators allege the French spirits maker intentionally used internal codenames and withheld age data to undervalue Scotch imports and pay lower tariffs. Pernod Ricard has rejected the claims and is currently challenging the tax demand in the Delhi High Court.
Pernod Ricard SA faces a $314 million back-tax demand in India after investigators alleged Pernod Ricard undervalued Scotch whisky imports. The claim follows a probe concluding the French company withheld the age and composition of concentrates to bypass a 150% tariff. The dispute threatens a fifth of the firm's annual local revenue as it battles separate antitrust and licensing hurdles in its largest market by volume.
### Allegations of Undervaluation and Codenames Indian authorities allege Pernod Ricard undervalued bulk Scotch concentrate imports by 67.49% to reduce tax disbursements. Documents filed at the Delhi High Court show investigators believe the company used internal malt codenames like "Rich Fruity Malt" to complicate disclosures. This system reportedly prevented customs officials from comparing the imports to those of competitors.
