Revenue says government did not prove public ownership of jewelry

The Federal Revenue said on Saturday night that the federal government did not prove public ownership of jewelry seized at Guarulhos International Airport on October 26, 2021, even after guidance and clarifications provided to government bodies, then headed by Jair Bolsonaro.

The Revenue note says it preserves data protected by secrecy and therefore does not mention names or further details, except for “news initially published in the newspaper O Estado de São Paulo”.

On Friday night (3), the newspaper published an article claiming that members of the government of Jair Bolsonaro would have tried to enter with jewelry donated by the government of Saudi Arabia without paying the respective taxes.

In response, the former president says he is being “crucified” for a gift he neither asked for nor received and says he has not committed any illegality. And the former head of the Special Secretariat for Social Communication of the Presidency of the Republic, Fabio Wajngarten, said that the entire process of entry of jewelry into the country was documented and that the gifts would be sent to the presidential collection.

The jewels were delivered to the entourage of the then Minister of Mines and Energy, Bento Albuquerque, and would be a gift from the Saudi government to Bolsonaro and his wife, Michelle. They were in the backpack of an advisor to the minister, Marcos André dos Santos Soeiro, and were seized by the Federal Revenue Service at Guarulhos International Airport, in São Paulo.

The Bolsonaro government made attempts to recover the jewels, without success, because the Revenue Service refused to hand them over without paying taxes.

In the note, the Revenue states that “every traveler who brings goods belonging to third parties into the country must declare them upon arrival, regardless of value”. According to the statement, if a public official “fails to declare the asset as belonging to the Brazilian State”, it is possible to regularize the situation with proof of public ownership, which would not have occurred.

The text states that the deadline for appeals expired in July 2022, and then the penalty of “loss” was applied, then going to auction, donation or even being able to be incorporated into the Union’s public assets. For this incorporation, measures would be necessary as a request from the competent authority and justification of the need, which also did not happen, according to the Revenue.

The tax authorities also say that the facts were reported to the Federal Public Ministry and that it made itself available to continue the investigations. Finally, the note states that the customs agents “fulfilled their legal duties with pride, courtesy, professionalism and impersonality, honoring the institution”.

Full text of the IRS note

Read the full statement released by the IRS below:

Regarding the news initially published in the newspaper O Estado de São Paulo about the seizure of jewelry at Guarulhos International Airport, on 10/26/2021, the Federal Revenue clarifies the following, preserving data protected by secrecy:

• Every Brazilian citizen is subject to the same customs laws and regulations, regardless of holding a public office or function.
• Federal Revenue agents working in customs are State servants, with prerogatives and constitutional guarantees that guarantee them impartiality and autonomy in the exercise of their legal attributions.
• Every traveler bringing goods belonging to third parties into the country must declare them upon arrival, regardless of value.
• In the case of goods belonging to the bearer, those worth more than US$ 1,000, the current limit, must be declared.
• If there is no declaration of the asset, 50% of the amount is required as a tax, plus a fine of 50%, reduced by half in the case of payment within 30 days.
• In the event of a public agent failing to declare the asset as belonging to the Brazilian State, it is possible to regularize the situation, upon proof of public ownership, and regularization of the customs situation. This did not happen in the case under analysis, even after guidance and clarifications provided by the Federal Revenue Service to government agencies.
• In the absence of this regularization, the good is treated as belonging to the bearer and, if there is no payment of the tax and fine, the penalty of forfeiture is applied, with appeals whose term, in this case, ended in July 2022.
• After forfeiture, it is possible, in theory, for the asset to be auctioned, with 40% of the proceeds going to social security and the rest to the treasury. It is also possible, in theory, the donation, incorporation to public property or destruction.
• Incorporation into the Union’s heritage requires a request from the competent authority, justifying the need and adequacy of the measure, such as the allocation of jewels of relevant cultural and historical value to be destined for a museum. That didn’t happen in this case. It is not possible to incorporate an asset for the personal interest of anyone, only in case of effective public interest.
• The facts were reported to the Federal Public Ministry, and the Federal Revenue made itself available to proceed with the investigations, without prejudice to the collaboration with the Federal Police, already announced by the Minister of Justice.
• Finally, the Federal Revenue salutes the customs agents who fulfilled their legal duties with pride, courtesy, professionalism and impersonality, honoring the institution to which they belong.