Italy investigates Glencore Xstrata for tax evasion
Italian authorities are investigating Glencore Xstrata Plc (LON: GLEN) for alleged tax evasion of more than $158 million.
Glencore told Bloomberg in a written statement Monday that authorities are reviewing transactions between its unit in Italy and its larger unit in Switzerland.
The company said all transactions were conducted according to Italian tax law and their unit is co-operating to bring the review quickly to a close.
Authorities allege Glencore hid profits by paying other units above-market prices for raw materials. Their interest in the international company was peaked since the Italian unit has never declared profit, only fiscal losses, and the Swiss parent unit has registered profits.
Glencore is the world's largest exporter of thermal coal.