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Santander Brasil reaches agreement with São Paulo over tax evasion charge

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Santander Brasil reaches agreement with São Paulo over tax evasion charge

Banco Santander (Brasil) SA reached an agreement with São Paulo's fiscal authority over a tax evasion inquiry and agreed to pay 195.6 million reais, according to several media reports.

Following the signing of the agreement on May 31 between Santander Brasil and the CPI parliamentary commission, the bank clarified that "it is in a situation of fiscal regularity with the municipality of São Paulo, and that the summoning of the 15 executives of the institution by the CPI occurs even after all clarifications have already been provided previously, and no new information can be added — therefore, the Bank will appeal the decision," according to a report from Diário Comércio Indústria & Serviços.

On May 30, Santander Brasil's chairman and other top execs had been summoned to testify over alleged fiscal fraud, in relation to an inquiry carried out by the CPI which targeted the Santander Leasing SA Arrendamento Mercantil unit. The parliamentary commission had investigated the possible use of false addresses by the bank as a way to avoid paying local taxes to São Paulo.

A similar case had been brought against Itaú Unibanco Holding SA, which struck a deal with the CPI earlier in May.

Hours after Santander reached its agreement with the CPI in May, another Brazilian bank, Banco Alfa SA, reached a similar agreement and agreed to pay the CPI 30 million reais, according to a report from O Globo.

As of May 31, US$1 was equivalent to 3.91 Brazilian reais.