Brazil: Fiscal regulator calls Dow purchase of Agromen ‘irregular’

Nine years after Brazil’s Administrative Council for Economic Defense (CADE) approved the partial sale of Brazilian agro-chemical company Agromen to its American competitor Dow AgroSciences, the deal has been called into question by another government regulator, the Administrative Council for Fiscal Resources (CARF).

The regulator has found fault with CADE’s decade-old decision, determining that the purchase – which allowed Dow to increase its market share in the GMO corn sector – also provided loopholes, allowing the company to pay lower taxes. The CARF has calculated back-taxes owed to the Federation totalling close to $200 million Reals (around $63 million USD.)

At the time, the operation’s total value was calculated at $185 million Reals ($50 million USD) – less than the amount owed by the Agromen transaction, which were transferred to Dow for a 50 year period.
Full Content: Jota

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