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UPDATE 1-Brazil says commods trades must follow global prices
April 4, 2012 / 8:56 PM / 5 years ago

UPDATE 1-Brazil says commods trades must follow global prices

* Brazil seeks to end inter-company price “manipulation”

* Agency says rules to prevent local tax evasion

BRASILIA, April 4 (Reuters) - Brazil’s tax agency said on Wednesday that intra-company commodities exports and imports by multinational traders must be settled using international prices.

Under new rules, the Brazilian units of companies such as Bunge, Cargill, Louis Dreyfus, Glencore and Noble 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.

The measures are aimed at ending “price manipulation” of inter-company imports and exports that allow multi-national companies to evade local taxes, he said.

“There are billions of dollars in value transferred within companies,” Serpa told reporters. “They are values that concern the whole world.”

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