MercoPress. South Atlantic News Agency
Argentina strips Procter & Gamble of its registration for alleged fiscal fraud
Argentina's tax office has stripped US multinational company Procter & Gamble of its registration for alleged fraud, the office announced on Sunday. The federal tax collection office, known as AFIP, has alleged that P&G evaded paying duties on imports from Brazil, billing through a Swiss subsidiary, in what it called potentially “aggravated contraband.” Read full article
Comments
Disclaimer & comment rulesUnilever shares down!
Nov 03rd, 2014 - 10:55 am - Link - Report abuse 0Thought this would be an opportunity but seems Argentina isn't a particularly attractive market for cleaning and personal hygiene products.
Bloody hell, Argentina wants to collect taxes, is this only for foreign companies and does this apply to the Argentinian government officials too.
Nov 03rd, 2014 - 11:26 am - Link - Report abuse 0Yankeeboy's idea of stockpiling soap powder looks even more of a winning proposition now ;-D
Nov 03rd, 2014 - 11:36 am - Link - Report abuse 0And more things disappear off the shelves. Too bad its not the corrupt politicians that are disappearing. This country is screwed.
Nov 03rd, 2014 - 12:10 pm - Link - Report abuse 0With every major company laying off 1000s of workers a month only a retard would go after them and make it worse.
Nov 03rd, 2014 - 12:16 pm - Link - Report abuse 0These Ks are going to drive out every Intl company by the time this is all over.
I can't wait until 2015.
P&G:
Nov 03rd, 2014 - 12:38 pm - Link - Report abuse 0Unaudited results for year ending 2014
Sales of U$D 83Bn per annum.
The Company has been paying a dividend for 124 consecutive years since its incorporation in 1890 and has increased its dividend for 58 consecutive years.
Operating income (Net profit) U$D 15,288Bn (14.1%).
The whole of LATAM (inc Mexico & the Caribbean) is just 10% of global sales. [NB sales to Walmart are 14%].
So the question is: if the whole of LATAM accounts for just 10% of P&G sales, what is the value of TDC sales (the report does not list individual countries)?
ONE PERCENT, LESS, MUCH LESS? Only P&G know that.
TMBOA is well on her path to totally destroying the country before she leaves; or a I would prefer, they hang her for it.
There's a very good chance she's deliberately trying to destroy the country.
Nov 03rd, 2014 - 01:31 pm - Link - Report abuse 0I refuse to believe anybody would make these lunatic decisions otherwise.
I'm confused. Would someone please explain how “overbilling” i.e., overstating the price of imports and thereby paying a larger amount of import duty, would result in an evasion of taxes by P&G? Exactly what has P&G done in violation of law?
Nov 03rd, 2014 - 02:50 pm - Link - Report abuse 0Why - if you have a choice - would you do business in rotting roadkill?
Nov 03rd, 2014 - 02:55 pm - Link - Report abuse 0Get out!
Run away!
Stop enabling the retards.
Let them sell their own domestic brands which are much better suited to the tastes and needs of the rotting roadkillians. And consider halting sales of component materials. Let them purchase them of the secondary market.
“AFIP also asked the judicial system to prevent the top officials with the local P&G affiliate from leaving the country until the multinational’s situation is resolved.”
Nov 03rd, 2014 - 02:56 pm - Link - Report abuse 0So now they are into hostage taking. Yea. Thats really going to help bring in foriegn investors.
If you're a corporate officerof a multinational and haven't left - you're an idot. This was clear from the rhetoric at the onset of the RRD debacle.
Nov 03rd, 2014 - 03:05 pm - Link - Report abuse 0I've said for a long time in short order you'll not see any foreign mfg in argentina.
Nov 03rd, 2014 - 03:13 pm - Link - Report abuse 0These people are scary stupid.
And there no reason to mfg in the country.
I can't wait until the 1st auto mfg pulls out.
Soon my pretties soon.
Hmm who we beleive, a money grubbing capitalist organisation whose objective is to make a buck and reward their bosses and shareholders or the Argentine government.
Nov 03rd, 2014 - 06:51 pm - Link - Report abuse 0Given the efforts of the Argentine governments over the last 70 years to suppress the truth about just about everything and close down the free press, I work from the immediate assumption that anything said by a government official is a tissue of lies.
Without your 'money grubbers' atlas shrugs and we all starve.
Nov 03rd, 2014 - 08:25 pm - Link - Report abuse 0This action will affect a number of companies that have found inventive and questionable interpretations of the Argentine tax laws in order to profitably conduct business.
Nov 03rd, 2014 - 09:21 pm - Link - Report abuse 0P&G will pay the fines and modify it's practices, but will downside its business in order to wait for this insane government to fade away.
15. They'll leave. There's no reason to mfg in Argentina. The market is small, taxes are high and the population is lazy and corrupt.
Nov 03rd, 2014 - 09:32 pm - Link - Report abuse 0Just wait and see.
15. Plus with price controls, I am sure they are losing money, similar to Clorox. Why is it so hard to understand, you set up a business , work hard to provide a service/product and are rewarded for that with a “profit”. As a consumer if you don't like the product don't buy it. Simple but Argentines don't seem to grasp that concept. Kind of like, loan money pay money back...
Nov 03rd, 2014 - 11:19 pm - Link - Report abuse 0As I correctly predicted Griesa gave Dart and basically anyone else who wants to pile on to the negotiations the right to use the mediator.
Nov 04th, 2014 - 12:03 pm - Link - Report abuse 0And the Rgidiots think this will be over in Jan 2015.
Bahahahhaa
It won't and this is just the beginning of the lost generation or two.
BTW are there still 50 municipalities under water?
Are the lights still out?
:)
Good things come to good people
Yankeeboy,
Nov 04th, 2014 - 12:54 pm - Link - Report abuse 0You misunderstand me. P&G will keep a small to medium small presence which has been part of their long term corporate strategy for years. The odds are that eventually another sane pro-business government will emerge in Argentina in the next 5 to 10 years....well perhaps...
19. I don't think so. My guess is sometime in the very near future most Int'l mfgs will close up shop for good.
Nov 04th, 2014 - 01:18 pm - Link - Report abuse 0We'll have to wait and see...
Like Venezuela, like Argentina.
Nov 04th, 2014 - 05:37 pm - Link - Report abuse 0Both plays from the Cuban handbook.
@ 8 owl61
Nov 04th, 2014 - 07:44 pm - Link - Report abuse 0I would imagine that what is really happening and making the crook in the tax office mad is this:
P&G “order” something, anything, from the Swiss subsidiary of P&G for fulfilment by some outfit in Brazil.
The PRICE is as specified on the tender and is inflated VERY substantially.
P&G, TDC, have to pay import tax of course, but isn’t this allowed as a cost against the manufacturing of goods? It is in any western country.
In the meantime, the vastly inflated invoice tendered by the Swiss company to TDC subsidiary is paid in full.
The Swiss only pay the invoice amount due to Brazil which is NOT inflated.
In this way P&G can repatriate their profits which would otherwise be held in TDC.
So, which would you rather have: less import tax (which may be recoverable) but ALL your profits held in a bank licensed in TDC?
The argie crook is of course attempting to mislead the public and is lying through his teeth,.
No brainer really. :o)
Companies usually don't close shop completely because of political risk. Giving up market shares due to a temporary problem (the K-government) is not smart.
Nov 04th, 2014 - 11:16 pm - Link - Report abuse 0Wait a minute...this fiscal fraud is alleged.
Nov 05th, 2014 - 06:36 am - Link - Report abuse 0Now in most 'civilised' countries you have to prove a crime before punishing people. So Argentina has punished this company for a crime that hasn't been proven, and very probably doesn't exist.
So much for innocent until proven guilty...in Argentina its guilty if we say you are, and of course if the government is desperate to divert attention away from the complete feck up they've made of the economy.
And in other news...
Nov 05th, 2014 - 07:50 pm - Link - Report abuse 0http://www.buenosairesherald.com/article/174004/capitanich-denounces-economic-terrorism-in-lower-house-briefing
After Procter, AFIP's is after General Electric, Pampa Energy and Monteverde
Nov 05th, 2014 - 08:27 pm - Link - Report abuse 0http://www.cronista.com/economiapolitica/Despues-de-Procter-la-AFIP-va-contra-General-Electric-Pampa-Energia-y-Monteverde-20141105-0100.html
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!