Diageo incurred the charge in 2012

Diageo incurred the charge in 2012

Diageo must wait to hear how much it has to pay after settling a tax bill over Windsor Scotch whisky imports into South Korea.

The company said today it has accepted a settlement proposal from the Seoul Administrative Court over a charge incurred in 2012. South Korea's customs office initially sought US$189.8m from Diageo because officials claimed it did not pay enough tax on the imported Windsor brand.

Details of the new settlement will now be finalised with customs officials and the court. “This process is expected to take several months to conclude given the legal and administrative procedures necessary to complete the settlement,” Diageo said.

Windsor is South Korea's biggest imported Scotch brand. However, Diageo's Scotch sales in the country have fallen in recent years. In 2013 sales were down 10%, while the overall Scotch market in South Korea saw sales dip by 13%.