Two US companies, Proctor and Gamble and General Electric (GE), have been accused in Argentina of over-invoicing.

Local companies – pharmaceuticals manufacturer Monte Verde and beer producer Maltería Pampa – are also under investigation for mis-invoicing.

Accusations
Cabinet Chief Jorge Capitanich said GE has “over-invoiced” imports in a financial manoeuvre designed to access additional dollars in the official foreign exchange market.

Capitanich also pointed the finger at Monte Verde and Maltería Pampa. Their cases are reportedly related to under-invoicing of exports.

Hidden profits
The Argentine politician said GE carried out illegal operations that cost the country an unnecessary amount of dollar reserves and reduced taxation income, after the company hid part of its profits as import costs.

GE has countered the criticisms by insisting that national officials had not asked for any information regarding its foreign trade transactions and stated that it complies with all Argentine laws and regulations.

More investigations
Argentina’s tax authorities have confirmed that Procter & Gamble and other companies are under investigation but preferred not to mention any other specific business names.

A tax official said companies’ details will passed onto the courts in the near future.