Argentina has banned Procter & Gamble (P&G) from doing business in the country, accusing the company of tax fraud.

A statement on the presidential website, published on November 2, said P&G had inflated the price of imports by $138 million in an effort to get money out of the South American country.

Argentina also accused the company of attempting to avoid taxes.

P&G said it was working to understand and resolve the allegations.

Argentina has banned Procter and Gamble from doing business in the country, accusing the company of tax fraud

“We don’t pursue aggressive tax/fiscal planning practices as they simply don’t produce sustainable results,” said P&G spokesman Paul Fox.

The alleged fraud involves shipments of razors and other hygiene products.

The statement, published on behalf of Argentina’s Federal Administration of Public Revenue (AFIP), added that details of the alleged fraud have been sent to its counterpart in the US – the Securities and Exchange Commission.

P&G has been operating in Argentina since 1991 and currently runs three manufacturing plants and two distribution centers in the country.