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Argentinian authorities temporarily suspend work of Procter&Gamble in the country

The authorities accuse P&G of fraud associated with the company overstating its imports from Brazil for 138 million dollars

© AP Photo/Al Behrman

BUENOS AIRES, November 3. / TASS /. Argentinian authorities temporarily suspended operations in the country of one of the world leaders in consumer goods — the American company Procter&Gamble (P&G), Reuters news agency reported, citing the statement of the Federal Tax Administration of Argentina.

Argentinian authorities accused P&G of fraud associated with the company overstating its imports from Brazil for 138 million dollars. According to Argentinian tax authorities, such steps were taken by P&G in an attempt to siphon off their money and hide taxable income.

The P&G representative Paul Fox told Reuters that the company is investigating the essence of claims raised in order to solve this problem.

P&G has been operating in Argentina since 1991, the company now owns three manufacturing facilities and two distribution centers in the country. In 2006, under pressure from the Argentinian government froze the prices of 31 kinds of products including shampoos and soap for at least a year in order to help contain inflation in the country.

In the 2013-2014 fiscal year, the share of Latin America accounted for approximately 10% of total P&G revenue in the amount of 83.1 billion dollars. The company does not disclose financial figures for the separate countries.

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