Tech Data bows out of Brazil, saying it's hard to make money

Clearwater's Tech Data Corp. says it will close by Jan. 31 its commercial operations in Brazil citing complex tax, legal and regulatory environments that make it difficult to generate enough business in the country. The technology products distributor expects to incur related charges of about $22-$25 million in the fourth quarter. And it will record an impairment charge of about $8-$10 million due to foreign exchange losses, the company said in a statement. Earlier, in fiscal 2011, a Brazilian appellate court ruled against Tech Data's Brazilian subsidiary regarding the imposition of certain taxes on payments abroad related to the licensing of commercial software products, commonly referred to as "CIDE" tax.