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from Brazillian point of view
Hi,
About the insinuations of political reasons, Cisco is also accused of giving money to the current government, so they bribed the winning side before the elections (actually, as most companies in Brazil, the probably bribed everybody in the government...)
I live in Brazil and is very true that the taxes are absurd, as citizens, 8 months per year of our work go to direct/indirect taxes to support a 100% corrupt government with their thefts, and thats what keeps the country in third world situation, but there is no denying that Cisco was indeed robbing the country by evading taxes.
It is also true that most other IT providers have some kind of similar scheme (I worked for some), they are just more cautious...