In the time that elapsed since we first posted about Cisco Systems’ (CSCO) run-in with the Brazilian tax authorities, many of you have sent us translations from local media. I wanted to take a moment to thank you for your efforts. (Hey, maybe time to visit you all :-) )
Cisco issued a statement acknowledging that its offices were raided and said the problem is local in nature. “We understand that a small number of employees have been detained. No formal charges have been brought against these employees,” the company said. Brazil represents approximately 1 percent of Cisco’s overall business; it doesn’t have a direct sales operation in the country but sells its products there via partners.
Julio does a good job of aggregating the local media coverage, presenting us with these relevant facts:
- 93 search and seizure warrants were served
- 40 people were arrested, including the current president of Cisco Brazil, Pedro Ripper
Pedro Rípero, ex-President Carlos Roberto Carnevali, and two other company executives.
- Brazilian authorities are seeking help from the U.S. in arresting five executives who allegedly masterminded the scheme.
- The scheme would have resulted in tax evasion of $825 million over five years.
- The investigation (dubbed “Operation Persona”) has been going on for about two years now.
For further reading, click here.