By Brazil Stock Guide – Fast Shop was fined R$1.04 billion, about $192 million, by the São Paulo state government over alleged irregularities involving ICMS, Brazil’s state value-added tax on goods and services. The penalty was imposed by the São Paulo State Comptroller General’s Office, known as CGE-SP, and is the largest fine ever applied in Brazil under the country’s Anti-Corruption Law.
The administrative case stems from Operation Icarus, an investigation launched in 2025 by São Paulo prosecutors into alleged tax fraud and corruption involving state tax auditors and large companies.
CGE-SP said the retailer committed acts harmful to the public administration, including the alleged offer of improper advantages to a public official, the acquisition of undue tax benefits and interference in tax inspection and investigation activities.
The case centers on Fast Shop’s hiring of Smart Tax Consultoria e Auditoria Tributária Ltda., a tax advisory firm operated by former tax auditor Artur Gomes da Silva Neto. The company allegedly provided services tied to the recovery of ICMS tax credits under Brazil’s tax substitution regime.
According to CGE-SP, there are indications that Fast Shop knew privileged tax information had been improperly obtained through irregular access to São Paulo’s tax authority systems. The state agency said the information was allegedly used to secure improper tax credits and distort the tax system.
The alleged arrangement would have included the facilitation of tax procedures, protection from audits and the intermediation of transactions to monetize tax credits. CGE-SP said Fast Shop obtained R$1.04 billion in undue tax credits registered by Silva Neto and that R$422 million was paid in bribes.
The comptroller’s office said the fine was based on evidence in the case file, the seriousness of the alleged conduct, the extent of damage to the public administration, the alleged improper advantage, the impact of the irregularities and the company’s economic capacity.
In a statement to Money Times, Fast Shop said the administrative proceeding is still ongoing and that there is no final decision in the case. The company said it will appeal through the appropriate administrative channels and, if necessary, in court, arguing that the amount is disproportionate and does not follow legal criteria or precedents tied to the same facts.
“The company emphasizes that no penalty should disregard measures and sanctions already adopted in other investigative instances, so that there is no duplicate punishment. Fast Shop also reiterates that it has cooperated and continues to cooperate with the authorities throughout the process and has been carrying out a business renewal cycle focused on strengthening governance, compliance culture and operational efficiency,” the company said.
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