Brazil Makes Arrests in Investigation of Cisco for $820 Million in Taxes

On October 16, 2007, Brazilian law enforcement officials arrested at least forty four persons in connection with a tax fraud scheme involving top officials of the high technology multinational Cisco Systems (Cisco) and its leading distributor in Brazil, Mude Business and Services (Mude). Operation Persona involved an investigation that lasted two years and focused on allegations of sales in the value of $500 million that was sent through companies based in offshore jurisdictions such as Panama, the Bahamas, and the British Virgin Islands. The arrests concern allegations of tax fraud and other offense involving non-payments of up to R$1.5 billion ($830 million) in duties, import fraud, concealment of property, tax fraud, use of false… [more]