In a dramatic reversal, the Supreme Court has slashed Philip Morris Thailand Limited’s tax evasion fine by 85%, reducing it from 130 million baht ($3.9 million) to just 20 million baht ($613,250), while dismissing all charges against a former employee. The company has accepted the ruling and expressed hope to move forward.
The Criminal Court on Ratchadaphisek Road delivered the Supreme Court’s verdict on October 9 in a case where prosecutors from the Special Litigation Division 4 charged Philip Morris (Thailand) Limited and two individuals with importing foreign cigarettes for sale while deliberately evading taxes and defrauding excise duties under the Customs Act.
The defendants were Nhu Ngoc Diep, Managing Director of Philip Morris (Trading) Thailand, and a former female Thai employee (name withheld).
The Allegations
Prosecutors claimed that between January 22, 2002, and August 14, 2003, the defendants and several accomplices still at large conspired to import L&M and Marlboro cigarettes into Thailand through fraudulent means. They allegedly filed 780 false import declarations with customs officials, understating the actual prices to evade duties.
The alleged offenses took place at multiple locations including Bang Rak and Khlong Toei districts in Bangkok, Laem Chabang Port Customs Office in Chonburi, and other customs checkpoints, with connections to the United States, Hong Kong, and Indonesia.
Nhu Ngoc Diep (center), Managing Director of Philip Morris (Trading) Thailand, stands with her translator (left) outside the Criminal Court on Ratchadaphisek Road on October 9, 2025, after the Supreme Court reduced the company’s tax evasion fine by 85%.
Journey Through the Courts
The Criminal Court initially fined Philip Morris (Thailand) Limited 130 million baht ($3.9 million) under amended legal rates while dismissing charges against the female employee.
The Court of Appeals modified the judgment, ordering the company to pay a fine at 2.5 times the legal rate and instructing customs authorities to recalculate the actual duty owed. The employee remained acquitted. Both sides then appealed to the Supreme Court.
Final Ruling
The Supreme Court found Philip Morris (Thailand) Limited guilty of evading customs duties with intent to defraud on 318 shipments under the Customs Act. The court imposed a total fine of 20 million baht ($613,250) for all 318 violations, calculating each at approximately 2.5 times the evaded duty amount.
However, the court dismissed 460 other tax evasion charges against the company. The ruling upheld the acquittal of the second defendant.
Company’s Response
Speaking through an interpreter after the verdict, Nhu Ngoc Diep, Philip Morris Thailand’s Vietnamese Managing Director, welcomed the acquittal of the company’s former employee. While respectful of the court’s decision, she said the company disagrees with the ruling, maintaining that it has always followed Thai customs procedures correctly and legally.
“This case has now reached its final conclusion. We hope this marks the end so we can focus on moving forward with our work,” Diep said…. อ่านข่าวต้นฉบับได้ที่ : https://www.khaosodenglish.com/news/2025/10/09/thai-supreme-court-cuts-philip-morris-fine-by-85-in-tax-evasion-case/
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