Cisco offices in Brazil were raided yesterday and executives arrested during a massive raid against alleged illegal avoidance of import duties.
Six hundred and fifty police and tax officers used 93 search warrants at Cisco offices and private homes. Police arrested 40 people, but no names were released. Investigators also seized $10m worth of kit, a commercial jet, 18 vehicles, and some $400,000 in US and Brazilian cash, according to the International Herald Tribune.
So far no charges have been laid against the 40 people, but the investigating judge said the case involved the use of forged documents to avoid or reduce import duties on electronic and telecoms equipment.
Six government tax officials have also been arrested, according to Reuters.
The two year investigation is looking at products worth at least $500m that have been shipped into Brazil from Panama, the Bahamas, and the British Virgin Islands.
These goods should have generated $833m in tax to the Brazilian exchequer.
More from the International Herald Tribune here. ®