BRASILIA, Dec 10 (Reuters) – Brazil’s lower house approved a bill tightening rules for habitual tax debtors, aiming to curb practices often used by companies involved in money-laundering schemes.
Tuesday’s bill, which Finance Minister Fernando Haddad called essential to fighting organized crime, heads to President Luiz Inacio Lula da Silva to be signed into law, after having already cleared the Senate in September.
The Lula administration has labeled the measure as key to closing loopholes that allow companies to keep operating despite repeatedly failing to meet tax obligations.
Momentum for the proposal grew after recent federal police raids uncovered multibillion-dollar money-laundering and fraud schemes in the fuel sector, including at refinery Refit, one of Brazil’s most delinquent taxpayers, which owes more than $4.9 billion.
The bill describes habitual tax debtors as those with unjustified debt exceeding 15 million reais ($2.76 million) and more than 100% of their declared assets.
Such companies will be denied tax incentives, public sector contracts, and protection from bankruptcy, among other curbs.
($1=5.4331 reais)
(Reporting by Marcela Ayres; Editing by Clarence Fernandez)
