Brazilian Federal Police dismantle tax fraud scheme in the Federal District.

Ivan Richard - Reporter for Agência Brasil

The Federal Police (PF) in the Federal District launched an operation this morning (4) to dismantle a criminal scheme of tax fraud that may have caused losses exceeding R$ 300 million to the public coffers of the DF. In total, seven search and seizure warrants were executed in Operation Alerta in the name of suspects of being part of the gang, at five residential addresses and two offices linked to the organization.

According to the Federal Police, the group contacted companies with tax debts and convinced business owners to "offset" the unpaid taxes by using tax credits from third parties, a practice not provided for in federal tax law. The Federal Police estimates that approximately 5 companies fell victim to the scam in the Federal District alone.

At the end of January, with the support of the Federal Revenue Service, the Federal Police dismantled a similar fraud scheme in Espírito Santo. At that time, according to data from the Federal Police, losses to public coffers of R$ 72 million were identified, and ten people were taken in for questioning.

According to the Federal Police, if the criminal scheme occurs in other states, the figures could reach billions. The agency stated that the name given to the operation aims to raise awareness among business owners about the scam and, consequently, prevent losses to their companies and the National Treasury.