Business

Argentina Suspends Operations of Procter & Gamble on allegations of Tax Fraud

on

 

Procter & Gamble Co (NYSE:PG), the worlds largest maker of household products was today suspended from carrying out any further operations in Argentina. The government of Argentina has accused the company of committing tax fraud. The operations of the company have been halted for an indefinite period of time as per a statement released by a representative from Procter & Gamble Co (NYSE:PG).  Argentina has accused the company of over-billing $138 million worth of imports to get money out of the country in a statement released on the official website of the Argentinean president.p&g

The statement states that Procter & Gamble Co (NYSE:PG) funnelled currency abroad and hid tax which needed to be paid in Argentina. The country which has been under pressure over a wilful bond default, has vowed to regulate tax loopholes that are being used by international companies to commit tax fraud. The company in its defence said that it is trying to fully understand the allegation and prima facie denies committing any kind of tax evasion. It believes that Procter & Gamble Co (NYSE:PG) has over the years respected the laws of the land in most countries and continues to share a healthy relationship with the country and consumers.

Analysts believe that Argentina, which has been banned from accessing international capital markets on the back of the bond default worth $100 billion is trying to shore up its foreign currency reserve by acting strictly on international companies. Procter & Gamble Co (NYSE:PG) in its last filed annual report said that the Latin American markets added 10 percent to its overall revenues. Analysts on the street believe that the indefinite suspension of operations is a huge negative for the company which has already warned investors and analysts about a slowing growth trajectory going forward.

Disclosure: None

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>