Shipping of Untaxed Cigs

180-million dollars lawsuit will hit hard UPS if the state and city win. Meanwhile, company’s representatives deny that they have knowingly transported tobacco products, citing their own company policy that strictly forbids shipping any tobacco items. General Attorney claims that the UPS has knowingly shipped almost 700,000 cartons.

The source of cigarettes is said to be Indian reservations, which supply other states with cheap cigarettes, avoiding paying taxes. According to the General Attorney in the course of four years UPS systematically cheated state and city of millions of taxes, saying that the total losses reach as much as 35 million dollars.

Similar lawsuit has been filed against FedEx, although the company did not offer any comments on the matter, as this lawsuit is still pending. Whether the state and city of New York will push for it – remains unknown. However it is rather safe to say that the company will also be denying its implication in shipping of illegal tobacco products.