Cisco fined R$3.3 billion BRL and has its assets and bank accounts blocked by court order in Brazil
Tue, 10/12/10 - 5:02pm View comments
Last May, I blogged that according to Cisco, its financial exposure to its Brazilian tax scandal was growing at the rate of $1.185 million per day having reached $1.875 billion as of May 1, 2010.
Today, Folha de S.Paulo (Brazil's largest circulation newspaper), reported that a Brazilian Court order has blocked Cisco's Brazilian assets and bank accounts and that Cisco has also been fined R$3.3 billion BRL.
Cisco's response to a Network World inquiry about its Brazilian assets:
"Last month, Cisco was notified that the bank accounts associated with one of Cisco's legal entities in Brazil had been blocked in connection with this three-year-old case. Cisco immediately appealed this action, and after reviewing the facts, a judge released the freeze on Cisco's financial assets. The judge agreed with Cisco that freezing the company's financial assets was inappropriate because the case relates primarily to the former distributor Mude, and not to Cisco."
