Ministry investigates whether event companies entered the program in an irregular scheme; government estimates excess expenditure of R$13 billion
The Federal Revenue Service opened investigations to determine the possibility of the Persian (Emergency Program for the Resumption of the Events Sector) has been used irregularly by companies. Tax authorities' suspicions include practices such as money laundering.
The minister Fernando Haddad (Treasury) has been talking to deputies and senators about the topic. The information was initially released by the newspaper Folha de S. Paulo and confirmed by Power360.
The premise is that companies linked to the events sector used the benefit to avoid paying taxes with laundered money. There is also talk of the possibility of companies outside the segment registering fraudulently to receive program incentives.
O Persian was created to mitigate losses in the events sector due to the pandemic, which practically decimated companies operating in this sector in 2020 and 2021 – due to restrictions on gatherings.
The leader of the Government in Congress, senator Randolfe Rodrigues (no party-AP), said this Tuesday (6.Feb.2024) that information about the alleged schemes reached Haddad through an anonymous source.
“The minister reported this case to us […] This complaint still needs investigation and confirmation.”he told journalists in Brasília after meeting with the minister.
According to the government, the program cost R$17 billion in tax exemptions in 2023. The Ministry of Finance's forecast was a waiver of around R$4 billion. The numbers served as an argument for the gradual extinction of Perse by 2025, established in the MP (provisional measure) 1,202 of 2023.
The expenses are considered unproductive by Haddad. The President of the Chamber, Arthur Lira (PP-AL), is in favor of maintaining the program. It is yet another friction between the Executive and the National Congress.
The end of the benefit proposed by the government comes as a way of cutting expenses. The economic team wants to reach the goal of bringing public accounts to zero by 2024.
In addition to the end of Perse, the MP 1,202 of 2023 deals with the re-encumbrance (resumption of tax collection) of 17 sectors of the economy. It also limits the offset of tax credits obtained by companies through a court decision.
The measure was published on December 29, 2023 and expires on April 1, 2024. Read the complete of the text (PDF – 100 kB).
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