São Paulo prosecutors dismantle major ICMS fraud scheme as businessmen seek plea deals
The São Paulo Public Ministry is investigating corruption involving private companies and employees of the state Finance Department to dismantle one of the largest fraud schemes related to ICMS.
São Paulo prosecutors dismantle major ICMS fraud scheme as businessmen seek plea deals
Prosecutors in São Paulo are uncovering a major corruption network involving private companies and state Finance Department employees. The focus of the investigations is a scheme to manipulate the Tax on the Circulation of Goods and Services (ICMS), considered one of the largest ever discovered in this area.
Facing pressure from the investigations, company owners and senior executives have rushed to negotiate collaboration agreements. The aim is to avoid criminal prosecutions by revealing in exchange how the payment of bribes and the offering of illegal favours by public servants operated.
The undue advantages were commercialised to illegally reduce the tax burden of participating companies. ICMS is the primary source of revenue for Brazilian states, and fraud in this tax causes significant holes in regional budgets.
The operation by the São Paulo Public Ministry aims to dismantle the entire criminal structure operating within the state tax administration.
Source: Valor Econômico
Source: Google News BR — São Paulo