Cisco has denied wrongdoing in the tax fraud scandal that engulfed its Brazilian tentacle earlier this week.

In a statement released to newspapers in the country, Cisco said: "Analysing the facts to which we have access, we do not believe that Cisco acted in an inappropriate manner."

According to Reuters, the statement said four of Tuesday's 44 arrests were Cisco employees.

Brazilian authorities accuse the firm of illegally importing $500m of kit over the last five years. With interest and fines, the government estimates it owes $826.4m.

Cisco said it does not import goods to Brazil itself, and instead relies on middlemen. ®

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