ADVERTISING

Latest Photo Galleries

Signs of Tension Signs of Tension

Published on 04/11/2016

Rio: a City in Metamorphosis Rio: a City in Metamorphosis

Published on 11/19/2015

Brazilian Markets

18h20

Bovespa

-2,34% 97.667

16h43

Gold

0,00% 117

17h00

Dollar

+1,10% 4,1240

16h30

Euro

+0,49% 2,65250

ADVERTISING

Banks Deny Making Deals to Pay Less Tax in Brazil

11/05/2014 - 18h00

Advertising

FERNANDO RODRIGUES
FROM BRASÍLIA

The banks exposed in documents leaked from the international financial consultants PricewaterhouseCoopers (PwC) were terse in their responses after being questioned by Folha regarding their operations in Luxembourg.

All deny having signed deals in order to pay less tax in Brazil.

ICIJ
CONFIRA TODAS AS REPORTAGENS

Itaú-Unibanco declared the following, through a spokesperson: "The document mentioned concerns exclusively the specific tax regime of Luxembourg, and while this may have an effect on the taxes due there, it does not affect taxes due in Brazil, which continue to apply to revenue declared by the subsidiary."

Bradesco's response was similar: "This is an agreement between the government of Luxembourg with Bradesco Luxembourg, an institution established there for more than 30 years. This agreement produces purely local fiscal effects, within that particular jurisdiction. It has no effect in Brazil."

Itaú and Bradesco are not being insincere in claiming that the agreements refer to Luxembourg. However, they avoid mentioning that they pay less tax in Brazil when their declared revenue in Luxembourg is reduced.

The banks are not obliged to inform the Federal Revenue of Brazil of their tax agreements in other countries. They are only required to declare their revenue obtained abroad.

PwC did not wish to make specific comments through its branch in Brazil. A statement read: "Owing to the confidentiality clauses in our contracts, and applied professional norms, we are unable to provide any information regarding the clients of our organization."

PwC said to the International Consortium of Investigative Journalists (ICIJ) that the reports published on Wednesday (November 5, 2014) are based on "old" and "stolen" information.

It also said that its services are "provided in accordance with local, European and international laws and agreements, and guided by the PwC's own Global Tax Code of Conduct."

In its statement, PwC maintains that the media "does not have a complete understanding of the structures involved" in the operations in Luxembourg. Although it says it is unable to comment on specific cases, it rejects "any suggestion of impropriety regarding the company's work."

Translated by TOM GATEHOUSE

Read the article in the original language

You have been successfully subscribed. Thanks!

Close

Are you interested in news from Brazil?

Subscribe to our English language newsletter, delivered to your inbox every working day, and keep up-to-date with the most important news from Brazil.

Cancel