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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: wl9839 who wrote (15235)	5/12/1999 9:02:00 AM
From: wl9839	Read Replies (1) \| Respond to of 22640

Brazil Senate Inquiry To Probe Intl Bank Tax Evasion Next Wk Dow Jones Newswires BRASILIA -- Brazil's Senate inquiry committee into banking irregularities next week will focus on allegations that five foreign financial institutions are dodging taxes. In a session Tuesday the inquiry committee approved the subpoena of Internal Revenue secretary Everardo Maciel, who oversees all federal taxes. Maciel is scheduled to appear before the Senate next week, at 1300 GMT Thursday. The allegations are based on a report published by daily O Estado de Sao Paulo. According to the report, the Internal Revenue Department suspects Citibank, J.P. Morgan, Deutsche Bank, Credit Suisse First Boston, and Credit Commercial de France of tax evasion. The report didn't cite any sources. Under the inquiry committee's working agenda, set up in early April, executives from the five institutions will also be subpoenaed. This, however, will depend on the approval of the Senate committee. This week, the inquiry committee will conclude the first phase of investigations. This phase focused on a secret operation to rescue two tiny banks in the wake of the currency devaluation in mid-January. The bailout operation resulted in a 1,567 billion reals (BRR) ($1=BRR1.655) loss for the central bank. On Thursday, the owners of the two banks are scheduled to appear before the committee. All the material collected by the Senate committee will be passed on to federal prosecutors, who will then decide whether to take any legal action. -By Adriana Arai; 55-61 321-1224 or 965-6883; aarai@ap.org