Cisco continues to try to distance itself from a Brazilian tax scandal, saying it can't keep tabs on everything its channel partners do, reports InfoWorld. The company said in Brazil more than 90 percent of its business goes through channel partners.
A judge last week extended temporary custody for six people arrested in the October roundup, and imprisoned three others, reports Financial Times. The former president of Cisco in Brazil is among those still being held and customs agents and tax inspectors were among those arrested, reports the Inquirer.
Brazilian authorities say Cisco and its agents constructed a complex system of real and phantom companies to avoid import duties and other taxes.
InfoWorld notes the company is known for conservative practices and solid accounting. Meanwhile, IT Business Edge blogger Rob Enderle notes Brazil is known for government corruption.