In a move that promises to have far-reaching consequences for global operations and international tax compliance, the Supreme Court ruled that defendants who evaded Canadian taxes by smuggling large quantities of liquor into Canada from the United States could be prosecuted in the U.S. under federal wire fraud laws.

The defendants, while in New York, ordered liquor over the telephone from discount package stores in Maryland, then employed others to drive the liquor over the Canadian border without paying the required excise taxes. The Canadian taxes then due on alcohol purchased in the U.S. were approximately double the liquor's purchase price.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access