Home--News

Coke Accused of Tax Evasion in Brazil
 
Bloomberg News
June 4, 2004

Coca-Cola Co.'s Brazilian unit may be probed by Congress after a local soft drink maker accused the world's biggest soft drink maker of tax evasion and unfair competition practices.

Lower House Deputy Andre Luiz, speaking after a hearing in Congress, said he may lead legislators proposing to the lower house's 40-member controlling and supervision committee that a probe into Coke's operations be opened. Marco Simoes, spokesman for Coke in Brazil, said the accusations, which were made by Dolly Refrigerantes, are ``unfounded.''

The Atlanta-based Coca-Cola, the world's biggest soft drink maker, has been accused by Laerte Condonho, president of the Sao Paulo state-based Dolly, of spreading allegations by e-mail that Dolly's drinks could cause cancer and forcing suppliers to suspend sales to Dolly.

Deputy Celso Russomanno said he estimates Coca-Cola has evaded 7 billion reais ($2.2 billion) in taxes on goods and services owed to the state of Sao Paulo.

Coke controls about 50 percent of Brazil's soft drinks market while Dolly has 1.6 percent, according to a report by Meio & Mensagem, citing an ACNielsen report from July 2003.

Coke shares fell 17 cents, or 0.3 percent, to $51.77.

FAIR USE NOTICE. This document contains copyrighted material whose use has not been specifically authorized by the copyright owner. India Resource Center is making this article available in our efforts to advance the understanding of corporate accountability, human rights, labor rights, social and environmental justice issues. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner.





 


 

 

 
Home | About | How to Use this Site | Sitemap | Privacy Policy

India Resource Center (IRC) is a project of Global Resistance -- "Building Global Links for Justice"
URL: http://www.IndiaResource.org Email:IndiaResource (AT) igc.org