Operation in SP and PR dismantles false ICMS tax-credit scheme causing R$ 3.8 billion in losses
CIRA-SP coordinates operation with 38 search warrants against scheme for sale of irregular ICMS tax credits involving law offices and consultancies, with estimated losses of over R$ 3.8 billion.
Operation in SP and PR dismantles false ICMS tax-credit scheme causing R$ 3.8 billion in losses
On the morning of Wednesday 15th, the Inter-institutional Asset Recovery Committee of São Paulo (CIRA-SP) launched an operation to dismantle a scheme for the commercialisation of ICMS tax credits without legal backing. The initiative brought together the Department of Finance and Planning, the state Public Prosecutor's office, the State Attorney General's office, and the Civil and Military police.
A total of 38 search and seizure warrants were executed in eight municipalities — six in the interior and capital of São Paulo, plus two municipalities in Paraná.
The investigation indicates that law firms and consultancies were selling companies in São Paulo tax credits at a discount, promoted as valid fiscal strategies. However, these amounts lacked authorisation from the public administration.
Folha de S.Paulo confirmed that lawyer Nelson Wilians, founder of one of the largest law offices in Latin America, is among those under investigation. The publication sought a statement from Wilians's legal representative but received no response by deadline.
The scheme worked as follows: the client would fail to collect the full tax amount and would transfer to intermediaries portions reaching 70 per cent of the value of credits used. In this way, resources that should have financed the State were diverted.
The credits traded were linked to inactive companies, bankrupt estates or operations without economic basis. To create a veneer of legitimacy, the suspects allegedly resorted to contracts, powers of attorney, policies and forged documents attributed to the tax administration itself.
The Department of Finance has already issued infraction notices to 752 companies involved, with estimated losses exceeding R$ 3.8 billion.
By using these improper credits, the beneficiary companies were able to artificially reduce their tax expenses, gaining unfair advantage over competitors who complied with normal tax obligations.
Source: Folha de S.Paulo
Source: Google News BR — São Paulo