San José, Costa Rica, since 1956

Government Raids Pepsi For Suspected Tax Evasion

THE Prosecutor’s Office for the Judicial Branch on Tuesday morning raided the installations of Embotelladora Centroamerica S.A. (ECSA), the country’s producer and distributor of Pepsi brand soft drinks, for allegedly not paying ¢109 million ($260,000) in taxes, the daily Al Día reported.

The Direct Taxation Office said it issued the order to search ECSA as a result of alleged irregularities found in its payment of foreign remittance taxes over royalties paid between Oct. 1, 1999 and Sept. 30, 2002.

ECSA pays royalties to the firm Cuba Libre International of the British Virgin Islands for the production and sale of Cuba Libre brand rum-and-coke canned beverage.

During the search, police seized several documents but arrested no one.

A spokesperson for ECSA said the company would not comment on the matter.

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