Support The Moscow Times!

$284M in Fines Levied Against Alcoholic Beverage Firm

The North Caucasus Arbitration Court has ruled that the Kaskad alcoholic beverage manufacturing and distribution company must pay 9 billion rubles ($284 million) in taxes and fines, making it the largest claim against a spirits company in the country's history.

According to the ruling, Kaskad will have to pay 5.04 billion rubles in excise tax and 1.29 billion rubles in VAT for various violations between 2007 and 2009, Vedomosti reported Tuesday. The rest of the amount is owed in fines.

An unidentified official told Vedomosti that recovering such an amount is unrealistic because cash reserves are usually instantly withdrawn from such companies and that only criminal charges against the owners might help.

Inspectors from the Federal Service for Regulating the Alcohol Market accused Kaskad of declaring and paying taxes for 0.5, 0.7 and 1.5-liter bottles, while delivering larger bottles to its customers in 33 regions across the country.

The firm is accused of producing enough illegal alcoholic beverages to fill 144 million 0.5-liter bottles.

The investigation began in 2010 and revealed that Kaskad, registered as a wine producer in the North Caucasus republic of Kabardino-Balkaria, has also been engaging in the illegal production and supply of vodka.

Related articles:

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more