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Xerox inks deal to combat cigarette smuggling in Kentucky

Rochester Business Journal
December 10, 2013

Xerox Corp. has signed a five-year deal to help the Kentucky Department of Revenue revamp its tobacco excise tax collections.

Under the contract, Xerox said it will replace the manual, paper-based process with an electronic tax system that will detect potential tax fraud and make it easier to track illegal cigarette smuggling.

Financial terms of the contract were not disclosed.
The implementation of Xerox’s new tax system will include licensing, surety processing, tax stamp ordering, inventory controls, electronic reporting, tax return processing, collection/payments processing, desk and field audits, and the tracking of shipments at the invoice level.
“By streamlining current manual processes, the Kentucky Department of Revenue can eliminate additional operational costs, while working to limit illicit trade,” said Rich Bastan, vice president of the Americas commercial and state government transportation sector at Xerox, in a statement. “State governments lose an estimated $5 billion a year due to cigarette smuggling and we are working closely with Kentucky to increase collections on all cigarette sales taxes due to them.”
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail

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