Fruts Indústria investigated for R$ 500 million tax irregularity

The Special Action Group to Combat Organized Crime (Gaeco) launched an operation on Thursday to investigate alleged tax irregularities involving Fruts Indústria de Concentrados da Amazônia. Based in Manaus, the company is being scrutinized for a suspected R$ 500 million loss related to the improper use of ICMS (tax on circulation of goods and services) credits.

Fruts maintains a commercial relationship with Baly Brasil, a beverage manufacturer located in Tubarão, Santa Catarina. Fruts supplies inputs to Baly Brasil, a process that allows for the utilization of ICMS credits. While the administrators of Fruts are the children of a partner at Baly Brasil, legal counsel for Baly Brasil stated that the companies do not belong to the same business group due to the absence of common partners.

In an official statement, Fruts denied any wrongdoing, asserting that its operations strictly comply with Brazilian tax legislation and that the fiscal benefits used are regularly provided for by law. The defense maintains that the investigation is focused on verifying the correctness of the tax assessment rather than the legality of the credit claims themselves.