The Tax Intelligence Department found signs of illicit activity in the purchase and sale of properties. In addition to tax fraud, the source of the capital raised raises questions.

The real estate sector is one of the most popular and profitable areas for private investment. At the same time, the risks of money laundering and tax evasion associated with illicit activities are a constant cause for concern for public oversight agencies, according to the Financial Action Task Force (FATF).

In our country, the business of buying, renting, and selling properties is not immune to these risks, and the Undersecretariat of State for Taxation (SET) is already scrutinizing a dozen companies in the sector.

The Tax Administration ordered a targeted audit of about ten companies after the Tax Intelligence Department detected signs of tax evasion and money laundering by cross-referencing data and tax returns.

Information obtained by ÚH reveals that, on the one hand, investigators found serious suspicions of fraud involving corporate income tax (IRE) and personal income tax (IRP). The IRE is paid on corporate profits, while the IRP is paid on income earned by shareholders, executives, and/or salespeople.

Regarding the evidence of money laundering, the findings pertain to doubts about the origin of the funds used to capitalize the companies under scrutiny—whether for the acquisition of land, houses, or apartments, or for the construction and renovation of private homes, buildings, or condominiums, among other purposes.

Transition. The SET plans to complete this specific audit between late July and early August.

The goal is to specifically determine the amount of unpaid taxes in order to impose penalties, so as not to leave this task unfinished before the change in administration. However, the companies and taxpayers under investigation may appeal the penalties through a process known as a summary proceeding. Ultimately, if no agreement is reached, they may file a complaint with the Court of Auditors.

Furthermore, once the audit is complete, if evidence of money laundering is confirmed, the documents and reports will be forwarded to the Secretariat for the Prevention of Money Laundering or Asset Laundering (Seprelad).

Subpoena. The investigation into the real estate sector is not new.

According to reports, in late April, the agency issued summonses to 78 companies in the construction sector due to inconsistencies in their tax returns totaling USD 14 million.

The findings during the audit relate to expenditures lacking supporting documentation, although the use of false invoices is also suspected. Additionally, discrepancies were detected between income tax returns and consumption tax returns.

Due to the confidentiality of the proceedings, the SET cannot disclose the names of the companies until the penalty is confirmed by the courts.

Source: Diario Ultima Hora