Source: ExpressaoNet - SP - BRAZIL - 09/08/2009

FATIMA FERNANDES
CLAUDIA ROLLI
of Folha de S.Paulo

The São Paulo government intensified the inspection at the sugar and alcohol plants because it verified a significant drop in the collection of ICMS in the sector. There are indications of tax evasion, according to Mauro Ricardo Costa, secretary of Finance.

The São Paulo Treasury also wants to charge Petrobras for burning gas in the State, in addition to seeking from the Federal Treasury tax refunds due to the accounting change made by the state company. This change generated controversy between the Lula government and the IRS.

The São Paulo government's attention is focused on the sugar and alcohol sector because it is one of the most encouraged by the State, according to Costa. The ICMS tax rate for hydrated alcohol is 12% and, for sugar, 7%. Most São Paulo products pay 18% ICMS.

“With this incentive, there is no reason for this sector to collect less tax than last year, and we already know that there was no drop in sales. The counterpart that the government expects, in terms of tax collection, is not going as we would like. For this reason, this sector deserves special attention ”, says Costa.

With the drop in the collection of ICMS, as a result of the retraction in the level of economic activity, the Serra government intensified inspection to minimize the effects of the crisis. From January to July this year, tax revenue, of R $ 52,4 billion, was R $ 1,4 billion lower than expected.

In addition to expanding the tax substitution regime (collection of ICMS at the beginning of the chain) to 23 sectors, the government intensified the inspection of IPVA debtors and tax evaders and merchants through the Nota Fiscal Paulista program, which returns part of the tax to consumers that ask for invoice.

Large companies are also in Costa's sights. This month, a large taxpayer will be charged R $ 2,7 billion, he says. This will be the highest tax assessment notice of the São Paulo Finance Department. Until then, the largest amount applied was R $ 2 billion, which is still under discussion at the TIT (Court of Taxes and Fees) - second administrative instance of the portfolio.

Petrobras

The National Treasury should be charged, according to the secretary, for Petrobras' accounting procedure that would have allowed the company to increase its cash flow in the order of R $ 4 billion and savings in the payment of taxes.

“One of the problems with this change was that we lost R $ 47 million in Cide. If what Petrobras did is right or wrong, it matters little to us. The discussion is between the Federal Revenue Service and Petrobras. Now it is necessary to account for this and make the transfer. We are claiming that the National Treasury transfers this lost amount, regardless of the dispute with Petrobras. Accounting must be done. Then, if the IRS finds it to be inadequate, it must reverse the accounting that Petrobras made and enter into administrative, judicial discussion. The State of São Paulo is charging, ”he says.

The São Paulo government will also charge, according to the secretary, the ICMS due on the gas that Petrobras has been burning in recent months. “If Petrobras wants to burn gas, that is a problem for it. I think it's harmful to the country. Now, the company has to pay the tax due because it extracted and circulated the gas. And if you did, you have to pay the tax, because the taxable event of the ICMS occurred. If I buy a good and destroy it, it's my problem, ”says the secretary.

The amount of the tax supposedly due for the discarded gas is still being calculated and could reach the billion, says Costa.