The legislative body of Pará state, Alepa, is currently investigating an allegedly fiscal triangulation scheme used by miner and iron ore producer Vale to avoid taxes in Brazil.
An Alepa investigative commission, known as CPI, made inspections at Vale’s site in Marabá city, in the state of Pará, as part of the investigation, Alepa said on Thursday. According to Alepa, Vale reportedly skipped tax payments of about $3 billion since 2006.
Vale owns the S11D iron ore project in Canaã dos Carajás in Pará state. It is Vale’s biggest iron ore mine and the world’s biggest iron ore project, according to Vale.
Citing Maria Duarte, a fiscal researcher who studied Vale’s alleged scheme, Alepa said Vale used Switzerland, China, the Cayman Islands and Brazil to declare below-than-realized sales revenues in Brazil.
According to a media report, Vale has denied any wrongdoing.