Dutch authorities are pursuing British American Tobacco (BAT) for £902 million ($1.13 billion) in unpaid taxes, accusing the cigarette maker of avoiding tax on money channeled through the Netherlands, reports The Guardian.
The claim relates to taxes the company is said to owe between 2003 and 2016 and concerns internal fees paid by Dutch subsidiaries for loans provided by its U.K. holding company.
The internal fees at the center of the claim are said to have been artificially inflated in order to lower taxes due in the Netherlands.
BAT disputes the claim.
“We strongly disagree with the Dutch tax authorities’ assessment, and as such, we are appealing this claim,” a BAT spokesman said, adding that the company complies with all applicable tax legislation in each of its 200 markets.