Bloomberg News

Argentina Suspends Bunge From Grain Registry Over Taxes

April 16, 2012

Bunge Ltd. (BG:US)’s Argentine unit was suspended from the country’s grain exporters’ registry by the local tax agency, saying it avoided 435 million pesos ($99 million) of payments.

Bunge evaded taxes between 2006 and 2007, the agency, known as AFIP, said in an e-mailed statement. The White Plains, New York-based company had previously been suspended from the registry in March 2011 as part of a separate tax probe.

Argentina is the world’s largest exporter of soy-oil, the second-largest of corn and the third-largest of soybeans. Bunge is among the country’s five biggest exporters of the products.

The suspension from the registry means Bunge will lose certain tax advantages for sales within Argentina and will have limited access to permits required to transport grains.

Following the previous suspension, an appeals-court ordered that Bunge be returned to the registry because AFIP hadn’t given the company enough time to defend itself, according to the ruling.

Bunge spokesman Stewart Lindsay did not immediately return a call seeking comment.

Bunge declined 0.6 percent to $67.99 at the close of trading April 13 in New York.

To contact the reporters on this story: Bill Faries in Buenos Aires at wfaries@bloomberg.net; Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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Companies Mentioned

  • BG
    (Bunge Ltd)
    • $85.25 USD
    • 0.26
    • 0.3%
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