hypoluxo
Veteran Lurker
Just got word of this from a friend who works at one of the companies mentioned in the article. Argentina is a major world supplier for grains and beans, but not as big in cotton. The big issue here is that these companies have been stripped of their rights to export grains. Argentina is also increasing export duties on grains in an effort to increase their tax revenue. Consider what this may do to grain prices worldwide.
One of the reasons cotton exploded this past winter was that India suspended all cotton exports.
http://www.bloomberg.com/news/2011-03-04/cargill-adm-accused-of-tax-evasion-in-probe-targeting-argentine-exporters.html
Archer-Daniels-Midland Co. (ADM) and Cargill Inc. may be prevented from shipping grains from Argentina after the government stripped them of their status as registered exporters amid a dispute over taxes.
ADM, Cargill and a third exporter, Alfred C Toepfer International BV, were temporarily removed from a registry of cereals exporters, according to a statement today in the official gazette. The move limits the number of transport permits they are eligible for, and a permanent suspension would boost income taxes to up to 15 percent from 2 percent, the agency known as AFIP said yesterday in an e-mailed statement.
The companies, which are being investigated as part of a probe that started at least five months ago, are accused of failing to meet all their tax obligations, according to the agency. In October, Bunge Ltd. (BG) was accused of underpaying 1 billion pesos ($248 million) in taxes and two Cargill executives were charged with tax evasion.
Argentina is the world’s second-largest exporter of corn and the third-largest soybean shipper. Cargill, ADM, and Bunge were the first-, second- and fourth-biggest grains exporters from Argentina in 2009, respectively, according to the latest data published by Buenos Aires based-researcher JJ Hinrichsen SA. Louis Dreyfus & Cie SA is the third largest.
Cargill country manager, Hugo Krajnc, declined to comment in an e-mail today. An official at Toepfer in Argentina, who can’t be named because of company policy, also declined to speak. Roman Blahoski, a press officer with ADM in Decatur, Illinois, said he wasn’t able to comment when reached by telephone today.
ADM, Cargill and Toepfer “used tax havens and financial operations abroad” to evade taxes, AFIP said. Last year, the agency said Bunge and Cargill improperly declared exports from Argentina to Uruguay, which has lower taxes because of a trade agreement to the two countries. The two companies denied any wrongdoing.
One of the reasons cotton exploded this past winter was that India suspended all cotton exports.
http://www.bloomberg.com/news/2011-03-04/cargill-adm-accused-of-tax-evasion-in-probe-targeting-argentine-exporters.html
Archer-Daniels-Midland Co. (ADM) and Cargill Inc. may be prevented from shipping grains from Argentina after the government stripped them of their status as registered exporters amid a dispute over taxes.
ADM, Cargill and a third exporter, Alfred C Toepfer International BV, were temporarily removed from a registry of cereals exporters, according to a statement today in the official gazette. The move limits the number of transport permits they are eligible for, and a permanent suspension would boost income taxes to up to 15 percent from 2 percent, the agency known as AFIP said yesterday in an e-mailed statement.
The companies, which are being investigated as part of a probe that started at least five months ago, are accused of failing to meet all their tax obligations, according to the agency. In October, Bunge Ltd. (BG) was accused of underpaying 1 billion pesos ($248 million) in taxes and two Cargill executives were charged with tax evasion.
Argentina is the world’s second-largest exporter of corn and the third-largest soybean shipper. Cargill, ADM, and Bunge were the first-, second- and fourth-biggest grains exporters from Argentina in 2009, respectively, according to the latest data published by Buenos Aires based-researcher JJ Hinrichsen SA. Louis Dreyfus & Cie SA is the third largest.
Cargill country manager, Hugo Krajnc, declined to comment in an e-mail today. An official at Toepfer in Argentina, who can’t be named because of company policy, also declined to speak. Roman Blahoski, a press officer with ADM in Decatur, Illinois, said he wasn’t able to comment when reached by telephone today.
ADM, Cargill and Toepfer “used tax havens and financial operations abroad” to evade taxes, AFIP said. Last year, the agency said Bunge and Cargill improperly declared exports from Argentina to Uruguay, which has lower taxes because of a trade agreement to the two countries. The two companies denied any wrongdoing.