PracticeAuditCisco in damage control after Brazil tax raids

Cisco in damage control after Brazil tax raids

Cisco has gone into damage control following news worldwide about raids on its offices in Brazil in relation to tax avoidance

Cisco
Systems
, the world’s biggest manufacturer of computer network equipment,
published advertisements in all major Brazilian newspapers last Friday to defend
the company against allegations it benefited from a scheme to avoid duties on
products shipped from tax havens to Brazil.

‘In the review of the facts that we’ve been able to undertake, we do not
believe Cisco has acted inappropriately,’ Cisco said in a statement released to
the newspapers. ‘Key to our evaluation, we would note that Cisco does not import
products directly into Brazil, but relies on resellers,’

No charges have been filed, but the judge who authorised the raid on Cisco
offices in Rio de Janeiro and Sao Paulo last Tuesday said bogus documents
showing unreasonably low prices had been used to import electronic and
telecommunications products to avoid duties.

Cisco said that, of the 44 warrants issued by the Brazilian authorities ‘only
four were issued to Cisco employees’. ‘Our foremost concern and focus is with
our four detained employees and their families,’ it said.

Further reading:

Cisco’s Brazil office faces tax probe

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