Argentine 'Tobacco Lord' Accused of $1 Billion Tax Evasion Faces New Probe

Argentinian businessman Pablo Otero, dubbed the 'Tobacco Lord,' faces accusations of significant tax evasion, allegedly costing the state around $1 billion since 2018. Otero's company, Tabacalera Sarandí, reportedly grew its share of the Argentine cigarette market from 5.6% to 38.4% by selling products that did not include the nearly 80% of taxes typically levied on such items.

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the caste, governors, opponents, and businessmen.

President Javier Milei had previously criticized Otero, stating, "We will not be accomplices of the businesses of some, like the 'Tobacco Lord,' who lobby to defend their interests." However, a law intended to compel Otero to pay taxes was not approved by Congress, leading Milei to blame "the caste, governors, opponents, and businessmen." The article notes Milei often fails to name specific individuals or entities in his accusations.

The Supreme Court of Justice unanimously ruled that Otero must pay approximately $1 billion in unpaid taxes dating back to 2018. This ruling dismissed Otero's defense that economic crises forced smokers to choose cheaper, second-tier brands like his. The court found that the lower prices were indeed a result of not paying corresponding taxes.

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the proverbial power of lobby (of Otero), which includes a political leg, a judicial leg and a media leg.

Beyond tax evasion, Otero is reportedly under scrutiny for money laundering. Investigations by the consultancy Abeceb, led by economist Dante Sica, indicate that Otero and other small tobacco companies caused a cumulative fiscal loss of $5.823 billion between 2018 and 2023. Journalist Alejandro Alfie reported that Otero's alleged influence extends to a "mafia" involving politicians, judges, spies, journalists, and media outlets.

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Otero benefited from a mafia of politicians, judges, spies, journalists and media.