The Customs denounced an export under-invoicing maneuver for US$5 million of cotton and sunflower derivatives. The body that runs William Michel He is seeking a fine of almost US$70 million and could face sentences of up to 8 years in prison, according to the agency in a press release.
The party explained that “the target company exported directly to Brazil and Uruguay, but triangulated billing through shell companies based in the US and the Virgin Islands.”
According to Customs, “the under-invoicing detected amounts to 70% in exports to Uruguay and 55% in those destined for Brazil”.
The complaint points to a company based in the Santa Fe city of Reconquista and the precise amount under-invoiced is US$5,392,666 in exports of products derived from cotton and sunflower.
“The objective of the irregular maneuver was to hollow out the tax base of the operations and avoid the due liquidation of foreign currency in our country. In this framework, Customs filed a criminal complaint against the firm before Federal Court No. 1 of Santa Fe,” the agency indicated. .
How the illegal operation was carried out
Specifically, exports of cottonseed pellets, sunflower meal pellets and cottonseed oil that were made directly to neighboring countries, but re-invoiced through intermediaries based in the United States and the Virgin Islands, are under scrutiny.
“It should be noted, there is no tangible added value provided by third-party operators that would justify the price increase, for which it is presumed that they acted as shell companies,” said Customs.
“The General Directorate of Customs maintains that the operation consisted of successive simulated sales in which intermediaries were appealed to to hide what, strictly speaking, were nothing more than direct sales,” according to the agency, which also stated that ” The analysis indicates that there would be links of a functional nature between the firm from Santa Fe and the re-invoicing companies”.
The Customs complaint falls under articles 863 and 864 of the Customs Code, for which penalties of up to 8 years in prison could be imposed. Likewise, under the terms of article 876 of the aforementioned regulations, it seeks a minimum fine of US$69,928,714.27.
Source: Ambito
