U.S. Securities and Exchange Commission Cease-and-Desist Order to Diageo plc [Administrative Proceeding File No. 3-14490, dated 7/27/11]

The SEC deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 against Diageo plc. This matter concerns multiple violations of the Foreign Corrupt Practices Act. Over more than six years, Diageo, through it...

Full description

Saved in:
Bibliographic Details
Published inTax Management Transfer Pricing Report Vol. 20; no. 8; p. 347
Main Author Murphy, Elizabeth M
Format Trade Publication Article
LanguageEnglish
Published Washington Bloomberg BNA 11.08.2011
Subjects
Accounting
Acquisitions & mergers
Annual reports
Armed forces
Bribery
Commissions
Consolidated financial statements
Financial performance
Foreign Corrupt Practices Act 1977-US
Government employees
Incentives
Injunctions
Joint ventures
Kickbacks
Liquor industry
Liquor stores
Public officials
Reimbursement
Sales
SEC 34
Stock exchanges
Subsidiaries
Travel & entertainment expenses
United States > US
Online AccessGet full text

Cover

More Information
Summary:The SEC deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 against Diageo plc. This matter concerns multiple violations of the Foreign Corrupt Practices Act. Over more than six years, Diageo, through its subsidiaries, paid over $2.7 million to various government officials in India, Thailand, and South Korea in separate efforts to obtain lucrative sales and tax benefits. In India, from 2003 through mid-2009 Diageo made over $1.7 million in illicit payments to hundreds of Indian government officials responsible for purchasing or authorizing the sale of its beverages. In Thailand, from 2004 through mid-2008, Diageo paid approximately $12,000 per month - totaling nearly $600,000 - to retain the consulting services of a Thai government and political party official. With respect to South Korea, in 2004, Diageo paid 100 million won (KRW) (over $86,000) to a customs official as a reward for his role in the government's decision to grant Diageo significant tax rebates.
ISSN:1063-2069