We Pay Our Taxes Procter  Gamble Tells Argentina

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We Pay Our Taxes Procter & Gamble Tells Argentina

Officials in Buenos Aires announced Sunday they had stripped the business registration of the U.S. multinational.

NEW YORK -- Procter & Gamble (IW 500/14) on Monday rejected Argentina's allegations of tax fraud, a day after its local offices were shut by Argentine officials.

"P&G pays all the taxes we owe in every country and jurisdiction, worldwide," the company said.

"P&G takes very seriously our responsibility to abide by the laws of every country we operate in, and to contribute to the countries and communities in which we live and work."

Officials in Buenos Aires announced Sunday they had stripped the business registration of the U.S. multinational.

The federal tax collection office AFIP alleged that P&G evaded paying duties on imports from Brazil by billing through a Swiss subsidiary.

"We have got to put an end to multinationals using harmfully plotted-out tax maneuvers," said AFIP chief Ricardo Echegaray.

The company will be able to resume operations in Argentina once it has paid its tax bill and fines, officials said.

P&G said Monday it is looking into the charges and working "to constructively resolve them."

The company noted that its Argentina business accounts for about 1% of total company sales "and a smaller percent of profit."

Copyright Agence France-Presse, 2014

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