Wine mafia in ES: public agents, businessmen and accountants are denounced by MPES

After the conclusion of the investigations relating to the so-called “Operation Decanter”, the Public Ministry of Espírito Santo (MPES), through the Special Action Group to Combat Tax Evasion (GAESF), filed a complaint against public agents, businesspeople and accountants, for committing crimes of criminal organization and ideological falsehood.

As evidenced, those accused organized a complex tax evasion scheme, aimed at suppressing the payment of Tax on Circulation of Goods and Provision of Services (ICMS) by Tax Replacement (ST) in the sale of hot drinks.

According to the latest estimate presented by the State Finance Department (SEFAZ), the amounts withheld by the group exceed the value of R$300 million.

Furthermore, some of the businessmen involved in the scheme were also charged with the crime of active corruption, while the former public agent was charged with the crime of passive corruption.

Throughout the investigation, the MPES Special Action Group to Combat Tax Evasion (GAESF) had technical support from the State Department of Finance.

Crimes attributed to members of the scheme
Some of the businessmen involved in the scheme were also charged with the crime of active corruption. The penalties for the crimes accused of those accused, combined, can reach 65 years in prison.

See the list of those reported below:

Group of entrepreneurs:
. Otoniel Jacobsen Luxinger
. Adilson Batista Ribeiro
. Ricardo Lucio Corteletti
. Gessio Oliveira Pereira
. Sergio Ricardo Nunes de Oliveira
. Ramon Rispiri Vianna
. José Gabriel Paganotti
. Frederico de Lima and Silva Leone
. Wagney Nunes de Oliveira
. Alexandre Soares de Oliveira

Appointed as intermediaries:
. Hugo Soares de Souza
. Henrique Couto Vidigal (Police Chief)
. Givanildo Padilha de Ávila Siqueira
. Adriano Badaró Albano

Counter core:
. Geraldo Ludovico
. Guilherme Tarcisio Silva
. Joabe Lopes de Souza

Orange:
. Andrea Silva

How the fraud worked:
In the first stage of structured tax fraud, accredited wholesale companies operating under a tax substitution regime regularly carried out interstate purchases of goods from producers, importers and distributors, only subject to their own ICMS (non-accredited firms had to collect ICMS-ST upon entry of goods).

After making payments on their stocks, the “accredited” companies issued outgoing invoices to companies located in states with which Espírito Santo does not have a protocol/agreement for advance payment of the tax, mainly Goiás, which exempted them from paying ICMS -ST. In these operations, the goods are only subject to the incidence of their own ICMS and, as the “accredited” companies are wholesalers, they still enjoy the tax benefit known as “compete”, which is why the effective rate on these “sales” is reduced to just 1 ,1%.

However, the interstate invoices issued by “accredited” companies in Espírito Santo were simulated, not reflecting an effective purchase and sale operation. In this case, the tax document was issued, but the merchandise remained physically in Espírito Santo.

In the subsequent moment of the criminal mechanism, wholesale companies with effective operations in the market were identified (called “pivot” companies in the complaint), which were responsible for issuing tax documents to support the sale, to Espírito Santo retailers, of goods that were acquired by through the “accredited” ones.

This was possible because these “pivotal” companies have their stock artificially inflated by ideologically false invoices (they do not reflect a true purchase and sale) issued by “instrumental” (“fictitious” or “shell”) companies. These invoices, it is worth mentioning, were issued with a code indicating the previous payment of ICMS-ST, but no tax was collected on previous transactions, especially because the “instrumental” companies, in most cases, did not even have a record of legitimate acquisitions.

In short, the “accredited” companies had the goods, but could not issue invoices to resell them internally, while the “pivot” companies had a fictitious stock, inflated by the ideologically false invoices issued by the “noteiras”, but did not physically carry the goods. In practice, then, the goods arrived at retailers with notes from “pivotal” companies, but physically left the establishments of accredited companies.