The tax authorities demand 1 billion euros from the British tobacco manufacturer British American Tobacco (BAT). The company is said to have avoided taxation in the Netherlands between 2003 and 2016, reports journalism platform De Onderzoeksredactie Thursday.

Part of the company's income goes through a holding company in Amstelveen. By tampering with internal transfer prices, BAT would have avoided large amounts of tax, argue the journalists after their own investigation.

In 2018, the company already mentioned the tax conflict briefly in the annual report, but no details were given.

BAT denies the allegations, but admits that the allegations are about improper use of transfer prices. The legal proceedings that the tax authorities have started can take between three and five years.

British American Tobacco produces cigarette brands such as Lucky Strike and Camel. The company recently announced that it would be scrapping more than 2,000 jobs worldwide and wanting to invest in a significant increase in sales of "new categories" such as the e-cigarette.