PJ recovered more than 100 million euros from VAT fraud

Over the last five years, the PJ, in collaboration with the tax authorities, managed to seize assets worth 100 million euros to compensate for losses from VAT fraud.

ICMS fraud continues to be one of the most harmful practices to the State’s coffers, embezzling annually hundreds of millions of euros through complex international schemes. Organized groups use networks of fictitious companies and transactions in high-value goods, such as technological devices and automobiles, to exploit flaws in the tax system.

However, the Judiciary Police (PJ), in collaboration with tax inspectors, has intensified the response, and seized or arrested more than 100 million of euros in goods in the last five years, according to the .

Among the most common methods is “carousel” schemewhich takes advantage of the ICMS exemption on interstate transactions. The operation involves multiple shell companies, known as “missing traders”, which do not declare income to the tax authorities.

Goods circulate between companies in different countries, allowing a third entity request fraudulent refunds to the State. This mechanism, characterized by the multiplication of intermediaries, makes it difficult to identify those responsible and amplifies financial losses.

In addition to support from the Tax Authorities, bank alerts have been crucial. Anomalous financial transactions, detected by the banking system, often signal fraudulent transactions, allowing authorities to track financial movements associated with money laundering.

Although the schemes involve a sophisticated network of participants, not all participants are aware of the crime. Many companies and individuals are considered third parties in good faithindirectly benefiting from fraud without criminal intent.

For example, vehicle buyers below market price or suppliers of goods sold without VAT within the European Union can participate without suspecting irregularities.

Collaboration between the PJ and the tax administration has been essential to speed up investigations and strengthen the response against this type of crime, protecting public resources and hindering the operations of criminal networks.