Santander pays US$50mn to end São Paulo tax probe

The Brazilian unit of Spanish banking giant Santander agreed to pay 196mn reais (US$49.7mn) to terminate an investigation over alleged tax evasion.

Last week, legislators in the city of São Paulo unveiled a tax evasion probe that included some banks, including Santander.

A special commission is investigating allegations that São Paulo-based leasing and factoring companies linked to banks registered their headquarters in other cities for tax reasons. The case drew media attention after a local court ordered top executives at Banco Santander Brasil, including CEO Sergio Rial, to attend a session that the commission would hold to hear the bank’s defense.

Shortly after the court decision, Santander agreed to pay the city government, but without acknowledging that tax fraud had been committed, a spokesperson from the bank told BNamericas.

“We have to congratulate the members of the special commission because it was this commission that succeeded in bringing these funds of more than 195mn reais to the public coffers of São Paulo," said Eduardo Tuma, head of the city council.