Argentina probes GE, Ambev subsidiary for tax fraud

Argentina probes GE, Ambev subsidiary for tax fraud

Wednesday, November 5, 2014 11:32 pm

Argentina on Wednesday broadened a tax fraud probe against Procter & Gamble to include US multinational General Electric and Brazil’s Ambev brewers.

“The complaints in process are against P&G, GE and (Ambev unit) Malteria Pampa, among other” companies, presidential chief of staff Jorge Capitanich said at a congressional committee meeting.

The government accuses the companies of overvaluing imports as a way to reduce the amount of taxes they pay in local currency.

On Monday, P&G denied Argentina’s allegations, and says it pays all of its taxes.

“P&G pays all the taxes we owe in every country and jurisdiction, worldwide,” the company said.

“P&G takes very seriously our responsibility to abide by the laws of every country we operate in, and to contribute to the countries and communities in which we live and work.”

Officials in Buenos Aires announced Sunday they had stripped the business registration of the US multinational.

The company will be able to resume operations in Argentina once it has paid its tax bill and fines, officials said.

Capitanich also said Argentina has an agreement with Switzerland on tax information. “There are 4,000 accounts (held by Argentina individuals and businesses) of which only 123 have been declared,” he said.

The government is working on legislation to rein in tax evasion and alleged large-scale corporate currency maneuvers.

Join The Conversation

What do you think?

This site uses Akismet to reduce spam. Learn how your comment data is processed.