Operation Apagão Uncovers Major Tax Fraud in São Paulo

São Paulo, Brazil — On Wednesday morning, September 10, authorities launched Operation Apagão, targeting two businesses in Bebedouro accused of tax fraud. The operation involved the Civil Police and the State Department of Finance and Planning (Sefaz).

The crackdown focused on a transport company and a metallurgy firm, as part of a larger investigation into fraudulent activities in the copper and aluminum wire industry. No arrests were made during the operation.

In total, 25 companies across nine municipalities, including São Paulo, Guarulhos, and Osasco, were subject to search and seizure warrants. The operation began following surveillance by Sefaz, which uncovered evidence of shell companies and fake invoices designed to create illegal tax credits for the Goods and Services Tax (ICMS).

According to the Secretary of Public Security, the estimated value of tax fraud over the last three and a half years exceeds R$ 727 million. Authorities noted that the fraudulent practices involved pretending to conduct interstate operations and misrepresenting the origin of illicit goods.

The police have initiated an inquiry into the matter, and while the names of the companies under investigation have not been disclosed, officials are reviewing the seized documentation. Those found complicit could face both tax and criminal charges.