Business
Argentina has banned the consumer products giant Procter & Gamble (P&G) from doing business in the country, accusing the firm of tax fraud. The BBC writes:
A statement on the presidential website, published on Sunday, said P&G had inflated the price of imports by $138m (£87m) in an effort to get money out of the South American country.
It also accused the firm of attempting to avoid taxes.
The alleged fraud involves shipments of razors and other hygiene products. P&G, which is based in the US, could not be reached for comment, due to the time difference.
The statement, published on behalf of Argentina's Federal Administration of Public Revenue (Afip), added that details of the alleged fraud have been sent to its counterpart in the US - the Securities and Exchange Commission.
Argentina’s tax agency says Procter & Gamble Co. exaggerated imports as a mechanism to send money out of the country and reduce tax payments. Bloomberg News reports:
The accusations relate to imports of razors and other toiletries from Brazil that were billed for $138 million via a subsidiary in Switzerland, the agency known as AFIP said today in a statement.
“Our main objective is that P&G pay back to the Central Bank the foreign currency that was sent out,” tax agency head Ricardo Echegaray said in the statement.
“And that it pays the customs’ fines and the avoided taxes.”
