Brazil Breaks Smuggling and Tax-Evasion Scheme Involving US-Based Cisco

Cisco in Brazil US-based Cisco, a multinational that designs and sells communications technology, and over 30 Brazilian and foreign companies in the area of technology are involved in a smuggling and tax-evasion scheme broken today, October 16, by the Brazilian authorities.

According to Brazil's federal police, who worked with the Internal Revenue service and the Public Attorney Office, the tax fraud brought Brazil a loss of about 1.5 billion Brazilian reais (US$ 832 million) to the nation's coffers, including non-paid taxes, plus fines and interest. The police operation was nicknamed Persona.

The police also seized US$ 290,000 and 240,000 reais in hard cash, products valued in excess of US$ 10 million, one executive jet and 18 vehicles, according to police chief í‰rika Tatiana Nogueira, responsible for the Operation Persona enquiry.

The firms involved, say the Brazilian authorities, imported irregularly IT equipment valued at US$ 500 million in the last five years. US$ 500 million dollars was the declared value.

The police believe that thanks to the fraudulent plan those involved in the scheme were importing a monthly volume of 50 tons in products from the American multinational.

Brazilian authorities say that in order to pay less taxes, those involved in the scheme would overbill hardware, which has a lower tax tariff and underbill software.

"The Brazilian computer industry has to face a very stiff competition from smugglers," said acting Minister of Justice, Luiz Paulo Barreto. "We've just dismantled a formal import scheme that was causing tremendous loss to the Brazilian industry and to jobs in the sector."

The arrangement used off-shore companies located in fiscal paradises like Bahamas, Panama and British Virgin Islands) with assistance from a law firm specialized in foreign trade and international law. This system guaranteed that the name of the real importer of the Cisco products would remain anonymous.

The police arrested 40 people and another four are still being sought by the authorities. Among those taken into custody are the president and directors of the Cisco branch in Brazil and six tax auditors.

The arrests were made in the Northeast (Ilhéus, Salvador) and the Southeast (São Paulo, Santos, Campinas, Rio de Janeiro) of Brazil.

Tags:

Ads

You May Also Like

Prodded by the Government, Brazil’s Varig Decides to Help Tsunami Victims

Brazilian Airline Varig plans to schedule more flights to the Asian coast to transport ...

A Brazilian Blockbuster

Hollywood hunk and soap opera star in NBC’s Days of Our Lives as Officer ...

Runoff’s First Poll Shows Lula Ahead in Brazil

Brazilian President Luiz Inácio Lula da Silva launched his runoff presidential campaign leading his ...

Poor Women from Northeast Brazil Learn Joy of Meeting and Helping Each Other

The small, coastal town of Condé is located just a twenty minute’s drive from ...

OAS Opens New Office on Blacks with Brazilian Money

With a renewed call for a hemispheric anti-racism convention to be in place sometime ...

Cuba Asks Brazilian President’s Help to End US Embargo

Cuba's interim president Raul Castro requested advise and help from Brazil's President, Luiz Inácio ...

Beach salesman in Copacabana, Rio de Janeiro, Brazil

Patronizing Brazilians the Politically Correct Way

I have written quite a lot about tourism in Brazil, generally pointing out that ...

Brazil’s Embraer Poised to Deliver Over 200 Jets in 2008

Brazilian aircraft manufacturer Embraer, in 2008. has delivered 145 jets up to the end ...

Rio Arrests Drug Lord of Rocinha, Its Biggest Favela, in Preparation for Olympics

Earlier today, Rio police arrested Antonio Francisco Bomfim Lopes, alias Nem, the drug lord ...

Haiti’s Brazilian-Led Occupation Force Might Leave Soon. Good Riddance!

As one of his first measures in office, Brazilian Defense Minister Celso Amorim plans ...