Author: Alexandre Costa Nascimento

Source: Gazeta do Povo Online - Curitiba / PR - ECONOMY - 23/05/2010

Luiz Augusto / Archive / Gazeta do Povo

Tanker truck distributes fuel in the region of Curitiba: front companies evade half of the ICMS generated per year by distributors in Paraná

 

The fuel distribution sector, the main source of collection of Tax on Circulation of Goods and Services (ICMS) of the government of Paraná - represents 20% of the total collected -, is also the biggest source of concern of the Paraná Finance Department. Together, five ethanol distributors owe the state tax authority about R $ 1 billion, a volume that is equivalent to half of what the sector generates from the tax in one year.

As it concentrates more than 60% of the taxes in the fuel chain under the tax substitution regime, the distribution sector is fertile ground for the creation of “engineering” to circumvent the Tax Authorities. Despite the increase in the rigor of inspection, which in the past five years has paid more than R $ 800 million in assessments, the secretariat is not able to combat the performance of the distributors that operate under the scheme called "surrogacy".

The practice consists of creating shell companies, usually in the name of "oranges", to mediate the sale of fuel from the plants to the service stations, since the legislation prohibits direct sales. Without an operational structure or equity, these companies function as "bureaus" of invoices, which issue the sales document, but do not collect the taxes due. When the State Revenue initiates inspection actions, the distributors simply "disappear", leaving multimillion dollar debts behind.

According to the inspector general of inspection of the secretariat, Rafael Casanova, it is practically impossible to recover these values. “In cases of irregularities, the legislation establishes the collection of the tax due, in addition to a monetary fine. It is also possible to request the cancellation of the distributor's registration. But it is difficult to recover the debt, since the distributors have no guarantees or equity and are registered in the name of third parties ”, he explains.

According to Casanova, the Finance Department tries to act by increasing the rigor in granting registration to distributors. "But the Judiciary has not helped us much and, based on the right to free enterprise, has granted injunctions forcing the IRS to release the operation of companies."

Illegal profit

The choice of the tax evasion path can represent an increase of up to 500% in the profit margin of the fuel distribution companies. In Paraná, the tax bite at this stage of the chain is 60% - approximately R $ 0,25 per liter -, while operating profit is R $ 0,05 per liter. The increase in the margin allows these distributors to sell the product at a below average price, creating predatory competition and distorting the entire market.

For the director of the Brazilian Institute of Tax Planning (IBPT), Letícia do Amaral, tax evasion is motivated by the high tax burden in Brazil. “Some sectors resort to evasion to survive, because if they comply with the legislation to the letter, they end up making the business unfeasible”, he evaluates. “But it is worth remembering that evasion is a crime. For the company that evades, it gets much heavier if it has to pay the tax due and the fine. In addition, you have the possibility to respond to a criminal action. ”

According to Leticia, the consumer can do little to help reduce tax evasion in this sector. “This responsibility can even be passed on to the service stations, which buy the cheapest fuel, but the State has the duty to inspect it. The maximum that the consumer can do is demand the invoice ”, he guides.

The executive vice president of the National Union of Fuel and Lubricant Distribution Companies (Sindicom), Alísio Vaz, says that this type of practice is the main concern of the sector today. “These companies that act only to accumulate tax debts quickly reach a large market share, as they practice 'unbeatable' prices. Structured, serious companies that pay taxes correctly lose competitive power. ”

The problem is concentrated almost exclusively in the fuel alcohol (ethanol) sector, in which production and distribution are decentralized; in Paraná there are about 70 distributors - 42 registered with the National Petroleum Agency (ANP) -, and 30 producing plants. The concentration of gasoline and diesel production at Petrobras refineries makes this type of practice impossible for these fuels.

Paraná is the second largest market in the country in ethanol consumption, representing 10% of the national total. The state is only behind São Paulo, which alone holds 50% of the country's consumption. The ICMS rate charged in Paraná (18%) is the second lowest in the federation, also behind that of São Paulo (12%). The national average is 25%.