Source: Folha de S. Paulo (São Paulo - SP) - 17/05/2012

The Petrópolis brewery factory in Boituva, in the interior of São Paulo, and distributors in the region were the target of an operation yesterday to investigate tax evasion.

This is the second time that the Petrópolis group, which owns the beer brands Crystal and Itaipava, is being investigated for alleged crimes against the tax order (read opposite).

The Petrópolis group said, about the operation, that "suspicions were launched without any real evidence".

Named Operation Czar, yesterday's action was attended by 80 inspectors from the State Finance Secretariat, prosecutors from the group for the fight against organized crime (Gaeco) of the Public Ministry and civil and military police.

Investigations began in 2011 and, according to tax authorities, the Petrópolis group would have failed to collect at least R $ 600 million in taxes.

The suspicion is that the company would be evading ICMS when simulating drinks transfers between the factory in the interior of São Paulo and a branch in another state, without highlighting the tax in the tax substitution system. Through the system, the industry collects all the ICMS in the production chain in advance.

"The company should collect both its own ICMS, due to its operations, as well as the incident in the other stages of the circulation of goods to the State, that is, the wholesale and retail sales tax", says the Finance, in a statement.

"The purpose of the simulation was to avoid paying the tax for tax substitution and which would be due to the supposed State of destination."

In a note, the legal director of the Petrópolis group, Fernando Jacob Filho, says that the group is “sure of its correct conduct in relation to taxes of any origin” and that the investigation takes place when “the group announces its intention to open a new unit in the Northeast".