This Tuesday morning (12/2), the Bahia Anti-Tax Evasion Task Force launched Operation Fogo Cruzado, targeting a business group in the arms and ammunition sector accused of fraudulently embezzling more than 14 million Brazilian reais from state coffers.
The action executed search and seizure warrants in five municipalities, namely Salvador, Vieira de Santana, Erice, Gosara and Curacao de Maria, as well as a provisional arrest warrant against the businessman identified as the leader of the scheme, who is being held in Vieira de Santana.
According to investigations conducted by the Financial Inspectorate of Intelligence and Research (Infip), the Public Ministry of Bahia and the Civil Police, the group adopted a routine of not collecting declared ICMS, which resulted in tax debts of $1 million being paid indefinitely.
The fraud was supported by a network of companies created successively in the name of oranges, a mechanism used to hide the real owner and postpone the payment of taxes.
Investigators also identified evidence of money laundering, particularly through the jewelery trade, used to move illicit amounts without attracting the attention of inspectors.
Continuing fraud
The task force stressed that the practice of declaring ICMS due and not transferring it to the state, in addition to constituting a crime against the tax system, directly harms the population. This is because the tax is paid by the consumer at the time of purchase, but in such cases it does not reach the public treasury.