Mayer Brown Attorneys Discuss Tax Court Corruption Scandal in Brazil

Despite recent initiatives to curb bribery, corruption remains endemic in Brazil.  The evolving Petrobras scandal exposed extensive corruption in the petroleum industry and now another multi-billion dollar corruption scandal has come to light involving one of Brazil’s tax tribunals.  Taxpayer intermediaries appear to have bribed judges on Brazil’s Administrative Council of Tax Appeals (known as CARF) to secure favorable outcomes.  Dozens of CARF decisions from 2005 through 2013 are being investigated.  A recent program presented by Mayer Brown offered valuable insights into the corruption scheme, the pending investigations and potential liabilities for participants in the scheme under both Brazil’s Clean Companies Act and the FCPA.  The program featured Mayer Brown partner Kelly Kramer, who moderated the discussion, and Salim J. Saud Neto and Eduardo Telles, partners at Tauil & Chequer Advogados, Mayer Brown’s Brazil affiliate.  This article summarizes the key takeaways from the program.  See also “Experts on Brazilian Law Explain the Latest Fallout from the Petrobras Scandal” (May 27, 2015); and “Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal”  (Mar. 18, 2015).

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