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

By  |  April 25, 2017

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).

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    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.
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