Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 05BRASILIA3091, Brazil: Tax Agency Chief Under Investigation

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05BRASILIA3091.
Reference ID Created Released Classification Origin
05BRASILIA3091 2005-11-23 17:17 2011-07-11 00:00 UNCLASSIFIED Embassy Brasilia
This record is a partial extract of the original cable. The full text of the original cable is not available.

231717Z Nov 05
UNCLAS SECTION 01 OF 02 BRASILIA 003091 
 
SIPDIS 
 
STATE PLEASE PASS TO IRS WASHDC 
NSC FOR CRONIN 
DEPT OF TREASURY FOR FPARODI 
BUENOS AIRES FOR BOGNANNO 
BOGOTA FOR IRS - OLGA ACEVEDO 
 
E.O. 12958: N/A 
TAGS: EFIN ECON SNAR PGOV BR
SUBJECT:  Brazil:  Tax Agency Chief Under Investigation 
 
 
1.  Summary: On November 18, 2005, federal prosecutors filed 
a civil lawsuit against Jorge Rachid, Secretary of the 
Ministry of Finance's Secretariat da Receita (i.e., the 
Brazilian counterpart of the U.S.  Internal Revenue Service) 
alleging "administrative improbity."  Prosecutors are 
seeking to have Rachid, along with one of his assistants, 
Ricardo Pinheiro, removed from office.  In addition, they 
are pushing to have the pair's assets frozen so these goods 
can be used to compensate the GOB for the losses (the 
precise amount has not yet been calculated) it may have 
suffered due to Rachid's actions.  Separately, the GoB 
suffered a setback when a scandal-distracted Congress failed 
to ratify a Provisional Measure (presidential decree) 
combining Receita Federal with the revenue gathering arm of 
Brazil's social security system, Receita Previdenciaria. 
The GoB likely will seek to resurrect the failed merger, 
which aims to make its tax collection arms more efficient. 
End Summary. 
 
The Case Against Rachid 
 
2.  The allegations against Rachid date from 1994 when he 
was a fiscal auditor in Salvador, Bahia.  Prosecutors 
affirmed that Rachid acted with negligence in favor of two 
friends representing one of the largest construction 
companies in Brazil -- OAS.  Specifically, Rachid was part 
of a group of Receita Federal auditors responsible for 
issuing a fine of R$1.1 billion (well over US$1 billion at 
the exchange rates prevailing at the time) against OAS. 
Later during the proceedings, the amount of the fine was 
dropped to R$25 million.  Prosecutors are accusing Rachid of 
negligence through the use of the wrong formula to calculate 
the amount owed by OAS.   They believe that Rashid 
associates Sandro Martins and Paulo Baltazar, both OAS 
representatives, pocketed R$18.3 million (US$ 8.3 million) 
in the wake of the large reduction in the assessed fine. 
 
3.    Prosecutors also believe that since 2003 Rachid has 
been taking advantage of his position to impede the 
investigation into himself and his OAS associates. For 
instance, in 2003, Martins served as Rachid's special 
assistant for 3 months.  In addition, on October 6 of this 
year, Rachid signed a decree making it possible for him, 
under certain circumstances, to remove a member of the 
commission which was looking into the charges against him. 
Meanwhile, Ricardo Pinheiro, Rachid's assistant, is being 
sued along with Rachid as Pinheiro managed the 1994 audit 
against OAS. 
 
The Death of the Super Receita 
 
4.  After the no show of  at least 41 senators at the 
Senate's voting session on November 18, Medida Provisoria 
258 (MP258) which would have created a "Super Receita" -- 
i.e., the integration of Receita Federal with the Receita 
Previdenciaria (the US counterpart of Social Security) 
expired.  Many observers felt that having Receita Federal 
work in conjunction with Receita Previdenciaria was an 
eminently sound idea.  A Super Receita would facilitate and 
increase tax collection and simplify and stimulate better 
and more efficient procedures, thus helping to reduce tax 
evasion.  However, in order for all this to happen, both the 
Chamber of Deputies and the Senate would have had to approve 
MP 258 within 120 days of its issuance.   They never did, 
principally because of the continued distractions from the 
ongoing political corruption scandal. 
 
5.  Still, the GOB hasn't given up on the idea. It is 
already working on developing a formal law (Projeto de Lei) 
reestablishing the Super Receita. However, for foreseeable 
future the Super Receita will not be an easy sell for GOB. 
Opposition parties such as the PFL, PSDB and PDT aren't 
buying the proposal, noting that the GOB is trying to 
concentrate too much power in one place.   Not even industry 
and the entrepreneurial sector has been able to budge the 
opposition on this.  And as an election year is just around 
the corner, chances are considerably diminishing for both 
sides - the GOB and the opposition -- to reach an agreement 
on the Super Receita. 
 
Next Steps for Rachid and the Super Receita 
 
6.  Coincidence or not, the timing of events has been good 
for Rachid.  Under enemy fire, he has been nominated, by 
President Lula, to command simultaneously both Receita 
Federal and Receita Previdenciaria while the GOB tries to 
gain approval of the formal law uniting them. This is the 
first time that one person has been tapped to lead at the 
same time two secretariats within two separate ministries: 
Finance and Social Security.   The elevation of Rachid to 
"Super Secretary" of the still separate Receitas  is not 
only a device for the GOB to keep the dream of the Super 
Receita alive, but it is a sign that the Lula administration 
plans to stick with Rachid notwithstanding the current 
allegations against him. 
 
7.   Still, Rachid continues to face challenges as ongoing 
strikes at Receita Federal continue to impede that agency's 
work.  On November 22, Receita's fiscal auditors and 
technicians returned to work after extended stoppages. 
Employees have threatened to return to the picket line if 
the GOB sends to congress the formal law proposing the 
creation of the Super Receita. 
 
Chicola