PHILIPINNES: San Mig fights back over tax claims
San Miguel, the Philippine food and beverage giant, is continuing its battle with the government over taxes the state says it owes on its beer product, San Miguel Light.
The Philippine Bureau of Internal Revenue is pursuing San Miguel Corp for 1.2 billion pesos (US$21.56m) in back taxes, as a result of sales in 1999 of San Mig Light, which the BIR last year reclassified as a "variant" of San Miguel Pale Pilsen. According to Philippine tax codes, a variant of a brand is taxed based on the highest tax classification.
However in a note to the Philippine Stock Exchange San Miguel said: "The company is of the view that the imposition of the higher tax is not in accord with law"
San Miguel said its lawyers would meet BIR officials again next week to discuss the reclassification.
"The company remains hopeful that it may be able to persuade the BIR to change its view," San Miguel said.
If talks fall through San Miguel could file a court case to stop the new tax assessment from being implemented.
- Focus - Edrington's FY Performance by Brand
- Pernod relies on Indian whiskey to crack Africa
- Hail Marie Brizard: But, For How Long?
- Analysis - Storm clouds lift over Diageo Towers
- 5 reasons why Constellation's Meiomi buy works
- Comment - Diageo CFO to North America? Do the Math
- Diageo CFO Mahlan to head up N America
- Diageo sells "non-core" Gleneagles
- Former Bacardi exec takes De Kuyper CEO role
- Diageo lining up Gleneagles sale - report
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- Edrington Group in Spirits (World)
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- The IWSR Company Profile 2014 – Remy Cointreau
- Global Tequila insights - market forecasts, product innovation and consumer trends research