São Paulo prosecutors ‘ask for’ tax investigation into Corinthians | OneFootball

UOL reports that São Paulo’s Public Prosecutor’s Office has filed a representation with Brazil’s Federal Revenue asking for a tax investigation into Corinthians over alleged financial irregularities.

The filing, signed by prosecutor Cassio Roberto Conserino, cites serious indications of misuse of the club for misappropriation and unjust enrichment, contrary to its statute.

Prosecutors say former presidents Andrés Sanchez and Duílio Monteiro Alves allegedly used corporate cards for personal spending, around R$ 480,000 and R$ 41,000 respectively. The statute bars remunerating directors, which would in principle be irregular.

The document also details large cash withdrawals by staff. Ex-head of security João Odair de Souza is said to have received over R$ 3.4 million, rising to R$ 7.3 million with correction, while driver Denílson Grilo moved about R$ 1.4 million. Sanchez’s defence argues the sums covered operational costs such as security, food and fuel.

Prosecutors ask the tax authority to adopt tougher measures, including possible loss of exemptions for IRPJ and CSLL and 35% withholding tax on unsubstantiated payments. They also seek a 150% qualified fine, alleging intent and fraud.

In practice, the club could face stricter fiscal treatment, potentially losing non-profit status and paying taxes like a regular company. If confirmed, the impact could be significant through new taxes, backdated charges and sanctions.

The filing points to governance failings, citing omissions by those responsible for financial control and missing Fiscal Council minutes and accounting records. Former finance director Matias Ávila said all accounts were duly recorded and approved internally.

Separate requests for judicial intervention are already pending in São Paulo. Audits by Alvarez & Marsal and Ernst & Young are referenced, with their reports requested.

Source: Meu Timao