Bricklayer: Public deficit? Not at all! Carf forgives R$ 27 billion from Itaú and Santander.

By Fernando Brito, from brick - It's on Poder360, in a report by Renan Melo Xavier, listing the pardons granted by the Administrative Council of Tax Appeals – the infamous Carf – to Itaú and Santander, exempting them from paying taxes on capital gains obtained in mergers and acquisitions of other banks, and also on alleged illegalities in the calculation of interest on equity, a remuneration to shareholders that Fernando Henrique Cardoso made immune to Income Tax.

It's "only" R$ 27 billion, perhaps a little more than the R$ 20 billion deficit that had to be added this year, raising the primary public deficit (excluding debt interest) to R$ 159 billion. I said perhaps because the certainty that this R$ 20 billion will be enough is increasingly diminishing.

Renan recounts that, in the case of Itaú, the most lucrative:

The controversy surrounding the case was not limited to the pardoned amount. The former rapporteur of the case, João Carlos Figueiredo Neto, was arrested in July 2016 during the unfolding of Operation Zelotes.

According to a complaint filed by the Federal Public Prosecutor's Office, Neto allegedly demanded R$ 150 million in bribes from the bank's lawyers. In a message sent to Itaú's defense team, Neto allegedly suggested writing the opinion "collaboratively."

Released one month later, João Carlos Figueiredo Neto ceased his work at CARF. He is responding to the proceedings while free. The final report on this case was assigned to council member Luís Fabiano Alves Penteado.

The advisors concluded that the deal did not involve money, but rather an exchange of shares. Which, of course, are worth money.

But that's beside the point.