Update: Cisco execs in Brazil among group arrest for tax fraud
Failure to pay import duties on $500M in networking gear among charges, reports say
Computerworld - Brazilian police have arrested 40 or more people, including Cisco Systems Inc. senior executives there, in a tax fraud investigation, according to reports.
Reuters and the Associated Press said the arrests by tax authorities and police occurred yesterday. The Reuters report adds that Cisco's Brazilian unit had imported $500 million worth of networking equipment over five years without paying import duties and that Cisco owes more than $800 million in taxes, fines and interest.
Cisco has posted a statement on its Web site regarding the incident.
The statement quotes Brazilian authorities who said they conducted "numerous raids [Tuesday] in Brazil in connection with an alleged scheme to evade taxes." Cisco notes that one of the companies raided was a Cisco reseller, which led to authorities temporarily closing Cisco's offices in Sao Paulo and Rio de Janiero.
A "small number" of Cisco employees were detained, but were not formally charged, the statement said. A Cisco spokesman said he did not have the names of the executives who were detained.
The statement adds that Cisco officials are trying to determine what happened, and that Cisco is cooperating with authorities. Cisco has no direct sales in Brazil, although it uses top-tier partners to resell products. Sales in Brazil account for about 1% of all Cisco revenues.
Read more about Networking in Computerworld's Networking Topic Center.
- SharePlan Security SharePlan is a continuous, secure, enterprise-ready file sync and share platform that facilitates smart, real-time collaboration across all devices.
- Three Ways Your DNS Can Impact DDoS Attacks Domain Name System (DNS) plays a big role in consumers' day-to-day Internet usage and is a critical factor when it comes to distributed...
- 3 Reasons Why You Need Real User Web Performance Measurements Learn why a traditional (technical) understanding of website performance needs to be replaced with a competitive one, a model where performance equates to...
- The Winter Games - Your Way During the 2014 Winter Olympics, video streams from the Akamai network reached devices internationally. Learn how Akamai provided stream security and analytics capabilities...
- Online Video and Web Traffic: Sochi 2014 Winter Olympic Games Over 25 leading global broadcasters worked with Akamai to deliver the action, excitement and inspiration of Sochi because they understand online viewers expect...
- Video surveillance for IT: maximum image quality, minimum bandwidth Join us on Thursday, May 8th at 1 p.m. EST when Willem Ryan, Senior Product Marketing Manager at Avigilon, will discuss how IT... All Networking White Papers | Webcasts