Revenue investigates R$ 4 billion fraud involving gold, scrap metal and counterfeit banknotes

IRS

Transactions with gold, metals and scrap involve money laundering and tax evasion, according to the Revenue

Sao Paulo-SP) – The Federal Revenue has detected evidence of fraud of BRL 4 billion in the issuance of invoices by shell companies aimed at companies that operate in the scrap chain. The investigation is part of Operation Gauteng, launched this Tuesday morning (16) by the agency in conjunction with the Federal Police.

The Revenue says that, in addition to scrap operations, it has identified the transaction of billions in gold invoices, which may be linked to crimes of money laundering, illegal extraction of minerals, tax evasion and other crimes, according to the agency.

The investigations, which target São Paulo, Rio Grande do Sul, Santa Catarina and Paraná, identified three criminal groups composed of around 80 people and metallurgical and steel companies. According to the Revenue, the nuclei have been using false invoices to circumvent inspection bodies, evade taxes and ‘warm up’ stolen goods.

The Federal Judiciary determined that 59 search and seizure warrants be executed in companies and residences of people involved in the scheme.

Santa Catarina concentrates the highest number of warrants, with 23 of them, followed by Rio Grande do Sul (18), São Paulo (16) and Paraná (1).

In São Paulo, Justice determined the execution of one mandate in the capital, eight in Jaboticabal and seven in Ribeirão Preto.

*With information from Folha de S.Paulo

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