Brazil busts $625 mn tax-evasion racket
August 18th, 2011 - 12:00 pm ICT by IANSRio de Janeiro, Aug 18 (IANS/EFE) A racket that allowed nearly 300 Brazilian firms to evade 1 billion reais ($625 million) in taxes was dismantled Wednesday, authorities said.
“Operation Alchemy” involved arrests, searches and asset seizures in 18 of Brazil’s 27 states, Federal Police said.
The sweep followed a nine-year-long investigation by a federal judge, who ordered 31 people jailed, another 63 detained for questioning and the freezing of the assets of 195 companies and 62 individuals.
The suspects will face charges of tax evasion, money laundering, forgery and criminal conspiracy.
Some of the firms involved in the alleged fraud have their headquarters in offshore tax havens such as the British Virgin Islands.
Among the assets seized or frozen are industrial plants, aircraft, boats, luxury autos and a private island off the coast of the northeastern city of Salvador.
While Brazil’s tax agency estimated the amount of taxes evaded at 1 billion reais, Federal Police said the actual sum could be larger.
The head of Federal Police in Minas Gerais state, Fernando Duran, said the ring established shell companies to generate phony transactions with the legitimate chemical firms taking part in the scheme.
–IANS/EFE
rd
- Fiat to build $1.7 bn car factory in Brazil - Dec 15, 2010
- Cisco to invest $545 mn in Brazil - Apr 04, 2012
- Brazil busts human trafficking ring - Nov 19, 2010
- 16 killed as power line falls during Brazil carnival - Mar 01, 2011
- Brazil to invest $2.4 bn in gold production - Nov 21, 2011
- Brazil to invest $17 bn in urban transport projects - Oct 18, 2011
- Five die in Brazil when elevator crashes - Apr 22, 2012
- Mexican bottler to build $140 mn plant in Brazil - Dec 07, 2011
- Brazil mudslides toll rises to 85 - Jan 05, 2010
- Brazil seeking $10 bn from Chevron for oil spill - Dec 16, 2011
- Mexican telecom giant to invest $5.4 bn in Brazil - Dec 28, 2011
- Brazilian lawmaker sentenced to prison for corruption - Sep 29, 2010
- Seven survive plane crash in Brazil - Dec 14, 2010
- Brazil's jobless rate hits nine-year low - Dec 23, 2011
- Five cities hold 25 percent of Brazil's national wealth - Dec 15, 2011
Tags: 1 billion, alchemy, assets, british virgin islands, criminal conspiracy, federal judge, federal police, fernando duran, forgery, industrial plants, luxury autos, minas gerais, money laundering, northeastern city, offshore tax havens, private island, rio de janeiro, seizures, shell companies, tax evasion