After negotiation with the Attorney General’s Office of Finance, the João Santos Group will have to pay R$4 billion in active debt
When closing a tax transaction with the PGFN (Attorney General of the National Treasury), the João Santos Group committed to paying R$4 billion of active debt. O record deal was closed with the aim of regularizing approximately R$10 billion in debts with the federal government.
The Pernambuco conglomerate founded in 1934 will have 36 months to pay off, with the possibility of extending it to up to 120 months. The 1st contribution to be made is R$230 million.
The group has until October 30th to start paying the debt, with the possibility of extending the down payment for another 45 days. The values prioritized the settlement of open liabilities with the FGTS (Service Time Guarantee Fund).
The active debt with the fund was also reduced from R$270 million to R$180 million. O Power360 prepared an infographic to show how the agreement between Grupo João Santos and PGFN works and the consequences in case of non-compliance:
The expectation is that more than 2,000 cases involving the conglomerate are closed. To close the agreement with PGFN, the João Santos Group had to give up all administrative and judicial discussions on negotiated debts.
Before closing the deal, the government had only managed to recover less than R$20 million from the João Santos Group’s liabilities in the last 5 years. Alexandre de Andrade Freire, regional attorney for the National Treasury in the 5th Region, states that the importance of this type of negotiation “exceeds the billion dollar figure”.
“The prospect of resuming the activities of companies that were compromised in their fiscal regularity stands out. The settlement of all tax liabilities and, mainly, current tax obligations, enhanced by the resumption of operational activities, also guarantees the maintenance and generation of jobs, which is so important from a social perspective”he declared.
JUDICIAL RECOVERY
The conglomerate, which brings together 41 companies – such as Cimento Nassau and TV Tribune–it is in judicial recovery since December 2022. In addition to the approximately R$10 billion in tax debts, there are R$3 billion in civil and labor debts.
A financial crisis hit the conglomerate in 2009, when the group’s founder, the businessman from Pernambuco, died. John Pereira dos Saints.
PF TARGET
In May 2021, the João Santos Group was target of theoperation Background, initiated by the PF (Federal Police) in conjunction with the Federal Revenue Service and the Regional Attorney’s Office of the National Treasury of the 5th Region. The investigation took place under suspicion of crimes such as tax evasion and money laundering, which would have caused losses of R$8.64 billion.
O Power360 was unable to contact the João Santos Group to obtain an official position on the agreement with PGFN.
FARM EXPECTATIONS
In 2024, the Ministry of Finance expects to reach R$43.3 billion in tax transactions. The projection isthe project of LOA (Annual Budget Law). Here’s the complete (24 MB) of the document.
Tax agreements are part of the government’s estimate of obtaining R$ 168.52 billion in new recipes. With this, it hopes to bring the primary deficit to zero in 2024. The goal, however, is practically unenforceableaccording to economists.
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