TOBACCO INDUSTRY
Multinationals use smoke and mirrors in illicit trade
Behind the money to be made from selling cheap, illegal cigarettes lies a more sinister agenda of corruption, money laundering and state capture
The illicit trade in tobacco may be highly profitable for cigarette manufacturers, including the multinational companies, but is exceedingly dangerous to democracy. Behind the money to be made from selling cheap, illegal cigarettes lies a more sinister agenda of corruption, money laundering and state capture. British American Tobacco (BAT) has been accused of "corporate espionage" and of infiltrating law enforcement agencies for its own benefit. The kerfuffle at the South African Revenue Service (SARS) originates from investigations into the illicit tobacco trade. In November 2013, SARS announced it wanted 15 local tobacco manufacturers and importers to be prosecuted for tax evasion and illicit trading. At stake was R12bn in unpaid taxes. About 18 months later, SARS acting commissioner Ivan Pillay, head of enforcement Johan van Loggerenberg and 55 other officials found themselves unemployed as a result of an aggressive campaign against SARS. The prosecutions for illicit trading evap...
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