Cargill exports feed to Europe from its facility in Santarem, Brazil. The measure in this Reuters article is aimed at ending 'price manipulation' of inter-company imports and exports that allow multinational companies to evade Brazilian taxes.
Brazil cracked down on multinational commodities firms Wednesday with rules to block them from shifting tax liabilities to more favorable countries.
The measure by Brazil’s tax authority comes a day after the government granted $5.5 billion in tax breaks aimed largely at domestic manufactures.
Under new rules, the Brazilian units of companies such as Vale, Bunge, Cargill, Louis Dreyfus, Glencore and Noble Group must value transactions with overseas units of the same company using international price benchmarks, said Sandro Serpa, a top enforcement official at Brazil’s federal tax authority.