Fintech firms under probe after falsified documents mask tax liabilities

The Oriente Moderno Financial Authority announced on Monday that a coordinated review uncovered falsified tax documents at three prominent fintech startups. The investigation found back‑dated paperwork used to reduce corporate tax liabilities by an estimated ₣ 45 million over the past two fiscal years.

Auditors traced the scheme to a shared accounting service that altered invoice dates and omitted revenue streams. The service, based in Nueva Singapur’s tech park, supplied templates that allowed firms to claim earlier expense recognition and lower taxable profit.

The Authority’s director, Liu Wei, said the practice violated the Republic’s tax code and the federal charter’s transparency provisions. The firms involved have been issued correction notices and face possible penalties pending a formal hearing.

Regulators plan to tighten filing requirements and introduce real‑time reporting for virtual‑citizen‑owned enterprises. The next step will be a draft amendment to Article VII, slated for debate in the Federal Assembly’s Constitutional Committee.