Argentina said it has suspended the operations of Procter & Gamble, accusing the U.S.-based company of tax fraud.
P&G, the world’s biggest maker of consumer products, including Crest toothpaste and Tide detergent, declined to say whether its operations in Argentina, which include three factories, had been halted.
The Argentinian tax authority alleged the company had overbilled US$138 million in imports in a scheme to move money overseas.
“P&G funneled currency abroad and hid income that was subject to tax in Argentina,” it said.
“We have to put an end to these tricks used by international companies.”
P&G spokesman Paul Fox said the firm is working to understand the allegations fully and to resolve them.
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