Brazilian steelmaker Gerdau is suspected to have paid BRL 50 million in bribes to avoid a BRL 4 billion tax, according to media reports.
Brazil’s Federal Police is investigating several companies, including Gerdau, that are accused of avoiding a combined BRL 6 billion in taxes.
According to reports, Gerdau allegedly paid BRL 50 million to Brazil’s Administrative Council of Tax Appeals (Carf) to avoid BRL 4 billion in taxes.
In response, Gerdau told local media it hired a third party law firm to advise the company on tax matters, but didn’t give further details.
Additionally, in a filling with Brazil's securities commission, CVM, Gerdau said on Wednesday it said that "until this moment, it hasn't been contacted by any public authority regarding the Zelotes Operation." The company said it has "high ethical guidelines in the conduction of its claims before public institutions."