Cisco accused of tax evasion

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Reuters reports that Brazilian police have arrested at least 40 people including senior executives at Cisco Systems Inc on suspicion of tax fraud. They report:

Police and tax authorities said Cisco's Brazilian unit had imported $500 million worth of telecommunications and network equipment over the last five years without properly paying import duties. In all, the company owes an estimated 1.5 billion reais ($826.4 million) in taxes, fines and interest, police said.

A spokesman for Cisco in Sao Paulo declined to comment.

Another report suggests:

Goods were shipped from tax havens like Panama, the Bahamas and the British Virgin islands to Brazilian clients to avoid local taxes, and the value of the products was underestimated.

What a surprise that the usual suspects are appearing.

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