ITAÚ AND THE DEBT OF R$20 BILLION

A report by Metrópoles, written by journalist Andreza Matais, draws attention to a billion-dollar dispute between Itaú and São Paulo City Hall. The case involves the collection of ISS, a municipal tax on services, and a central question: where should part of the bank's operations have collected the tax, in Poá or in the capital of São Paulo?

According to the City of São Paulo, the Itaú Group appears today at the top of the list of the largest debtors registered in the municipality's active debt. The updated value is R$20.05 billion, according to a survey released by the municipal administration in June.

The origin of the controversy dates back to investigations carried out by the City Council in 2019. At the time, the Tax Evasion CPI investigated suspicions that companies maintained formal registrations in cities in Greater São Paulo, where the ISS was lower, although the City Hall understood that the main activities took place in the capital. In the case of Itaú, the CPI report cited addresses in Poá and stated that the locations would not have a structure compatible with the operations registered there.

Still in 2019, the bank presented a proposal to transfer activities of group companies to São Paulo. The Chamber estimated, at the time, that the change could yield up to R$230 million per year in ISS for São Paulo's coffers. But the discussion about values from previous years has not been closed.

Now, the matter is back on the agenda with the CPI dos Debtors, installed in the City Council to monitor large debts owed to the city. In June, councilors approved requests and invitations for companies listed among the largest debtors to provide clarifications, including Itaú.

The bank, in turn, contests the version presented in the report. In an official position, Itaú states that it maintained real operations in Poá between 1992 and 2019, with employees on site, and that it collected the taxes owed to the municipality. The institution says that the charge made by São Paulo represents an attempt to recharge amounts already paid and states that the case remains in court, with guarantees presented to the Court.

In practice, the dispute brings together two opposing readings. On the one hand, City Hall and Chamber investigations point to a possible address simulation to reduce ISS payments in São Paulo. On the other hand, Itaú maintains that it acted regularly in Poá and that there was no fraud. Until there is a definitive decision, the case remains one of the biggest tax disputes involving a financial institution in Brazil.

Source: Antena 1