Argentina Accuses P&G of Exaggerating Imports to Cut TaxesAndrew Willis
Argentina’s tax agency says Procter & Gamble Co. exaggerated imports as a mechanism to send money out of the country and reduce tax payments.
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.”
A spokesman for Cincinnati-based P&G didn’t immediately respond to a voice message left outside normal working hours.
The agency is seeking a foreign travel ban on local company executives, and has suspended P&G’s Tax Identification Code as a preventative measure, according to the statement.