São Paulo prosecutors ‘seek’ tax probe into Corinthians finances | OneFootball

São Paulo’s public prosecutors have asked Brazil’s Federal Revenue to open a tax investigation into Corinthians over suspected irregularities, UOL reports. The representation was filed on Wednesday.

A document signed by prosecutor Cassio Roberto Conserino cites serious concerns, alleging the club was used for misappropriation and unjust enrichment, breaching its statute.

Prosecutors say ex-presidents Andrés Sanchez and Duílio Monteiro Alves used corporate cards for personal expenses of about R$480,000 and R$41,000. The statute forbids remunerating directors, which would in principle be irregular.

The filing also cites large cash withdrawals. Former security chief João Odair de Souza is said to have received more than R$3.4 million, potentially R$7.3 million when adjusted, while driver Denílson Grilo moved about R$1.4 million. Sanchez’s defence says the sums covered operational costs such as security, food and fuel.

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

The club could lose non-profit treatment and be taxed as a regular company, sharply raising costs. If irregularities are confirmed, the hit could be heavy via new taxes, backdated charges and sanctions.

Prosecutors also flag weak oversight, missing Fiscal Council minutes and absent accounting records. Former finance director Matias Ávila said all accounts were recorded and approved internally.

Corinthians faces petitions for intervention in São Paulo courts, and audits by Alvarez & Marsal and Ernst & Young have been requested.

Source: Meu Timao