Source: Folha de S. Paulo, 18/01/2005

Etco (Brazilian Institute of Competition Ethics) will research how many there are and the impacts produced by “favelaised” companies, those that do not pay taxes, do not register employees and make up invoices. “Operating in this gray belt, they make predatory competition, corrupt tax officials, politicians and even the judiciary”, says Emerson Kapaz, president of Etco. In the information technology (hardware) sector alone, the “favelizados” account for 70%.