Rio de Janeiro proposes law against corporations owing over R$15 million in taxes

The Rio de Janeiro state government has submitted a bill to the state legislature that would establish guidelines and sanctions for companies with tax debts exceeding R$15 million. The proposal follows the state's request to convert the judicial recovery of Refit, a major debtor with a tax liability of roughly R$25.7 billion, into bankruptcy. Authorities argue that Refit's restructuring failed to generate cash flow and that the company continued to accrue losses, prompting the bankruptcy filing. The bill also targets other corporations with irregular tax obligations, aiming to strengthen fiscal compliance. Refit and its owners have not commented on the bankruptcy request, and the firm is under a federal police investigation for alleged fraud, tax evasion, and money laundering. Its principal shareholder, Ricardo Magro, is a fugitive in the United States and appears on Interpol’s red notice list.