Welcome to the Surreal: Cisco Execs Arrested in Brazil for Tax Evasion
“About 650 agents executed 93 search warrants, arresting 40 people allegedly involved in the ring to avoid import, sales and corporate taxes.” And the winner of this statement is allegedly Cisco Systems.
The whole story reminds me more of the drug tales from the eighties than an IT scam. The police seized “$10 million in merchandise, a commercial jet, 18 vehicles and the equivalent of nearly $400,000 in Brazilian and U.S. currency during the raids.” I suppose if anyone wondered how much the information economy matters this story is an odd but telling example. The Brazilian government conducted a two year investigation in which they tracked sales shipments from tax haven countries. In all, about $833 million in tax revenue was lost because of the scheme. Cisco’s U.S. office is cooperating with the investigation. Still, the size of the scam is impressive. Most likely Cisco will remain silent, then conduct some sort of internal investigation, and finally issue new best practices to show its dedication to fighting corruption within the company.