Brazilian Federal Police on Tuesday made 14 arrests and executed dozens of search warrants as part of a sweeping investigation into alleged misuse of government tax exemptions for cultural events. Police said they were investigating tax exemptions worth R$180 million obtained by music and event promotors for 250 cultural ‘events’ approved by the Ministry of Culture. Ministry approval makes the events eligible for tax exemptions under the so-called Rouanet Act, named for a former Minister of Culture. Police said many of the events simply never took place while others, such as expensive wedding receptions, were entirely private.
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