Procter & Gamble rejects Argentina tax fraud charges
New York (AFP) - US consumer goods conglomerate Procter & Gamble 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 US multinational.
P&G is known for scores of popular household brands including Crest toothpaste, Bounty paper towels and Pampers diapers.
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 percent of total company sales "and a smaller percent of profit."
P&G shares were down 0.6 percent to $86.78 in Monday morning trading.
