The paper industry is stepping up efforts to combat tax fraud in the sector. A campaign seeks to make consumers aware of the use of immune paper (sold tax-free) and measures are being adopted to curb criminal practices.

"The paper sector sees the fruits of collective efforts to fight fraud involving paper with tax immunity growing, which should be used exclusively for the printing of books and periodicals, as provided by the Brazilian Constitution". The statement is from the president of the National Association of Paper Distributors, Vitor Paulo de Andrade, commenting on the recent developments of the Immune Paper Operation, of the Federal Revenue.

Earlier this month, the Federal Prosecutor's Office in São Paulo denounced 11 people involved in fraudulent importation for money laundering, criminal organization and misrepresentation. Between 2009 and 2013, the group hid and concealed the origin, movement and ownership of around R $ 1,1 billion from various crimes, such as embezzlement and tax evasion. For this, it used shell companies, fake invoices and "oranges".

The criminal organization took advantage of the tax immunity granted to paper intended for books, newspapers and periodicals. However, instead of reselling the imported product without taxes to buyers linked to such purposes, the defendants passed it on to wholesale and retail companies with a price 20% lower than the market price, which generated millionaire profits. "The product is exempt from taxes to encourage education and culture, but ends up being diverted to the taxed paper market, resulting in unfair and fraudulent competition," says Andrade.

Source: Diário da Região (24/04)

To read the full story, click here

To learn more about Immune Paper, visit www.papelimune.org.br