Chilean Restaurateur Accused of $1.4 Billion Tax Fraud Scheme
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The Internal Revenue Service (SII) of Chile has launched a major examination into Óscar Martínez Catalán,a businessman accused of defrauding the government of more than $1.4 billion through a complex network of fraudulent activities centered around his fast-food chain, “El Chaday.”
The SII alleges that Martínez engaged in five distinct tax crimes, utilizing false invoices and strategically leveraging his Rancagua-based restaurants to conceal his financial maneuvers. This case represents one of the largest tax fraud investigations in the O’Higgins regionS history.
A History of Allegations
This is not the first time Martínez’s name has surfaced in connection with illicit activities. According to reports compiled by BBCL Investiga, in 2024, he was implicated in bribing Juan Ramón Godoy, the former mayor of rancagua, during an investigation into embezzlement of public funds, treasury fraud, money laundering, tax crimes, and aggravated bribery. The current SII complaint,thus,adds another layer to a concerning pattern of alleged misconduct.
The Rise of “El Chaday”
Approximately 14 years ago, Martínez established “El Chaday,” a fast-food restaurant specializing in sandwiches and chorrillanas – a popular Chilean dish. The business quickly expanded from its initial location in Rancagua to include nearly a dozen restaurants throughout the O’Higgins region. All premises were reportedly owned by Servicios Gastronomicos Chaday SpA, with martínez holding 100% ownership and serving as its legal representative.However, the SII investigation contends that this corporate structure was merely a façade to facilitate a fraudulent scheme.
The first alleged act of evasion involved the under-declaration and omission of value Added Tax (VAT) payments.Between June 2021 and November 2023, the company reportedly enjoyed considerable sales while systematically failing to issue receipts. The profits generated through this practice exceeded $1.2 billion.
according to the complaint, a significant portion of these funds – over $295.7 million between june 2021 and September 2022 – was transferred to the account of servicios Gastronomicos Chaday SpA from 2,075
Second Evasion: False Invoices and Shell Companies
The SII alleges a sophisticated scheme involving the creation of false invoices through shell companies. A, which issued 49 false invoices to BOD seguridad SpA, despite a mismatch between its purchases (primarily meat) and the billed services (cleaning and sanitation).Visión y Seguridad SpA issued 7 false invoices to Comercial y Servicios Integrales SpA, a company lacking the assets, personnel, or operational capacity to support the invoiced services. Notably, Martínez reportedly owned 100% of Comercial y Servicios Integrales SpA, a fact not disclosed to the SII, and the company’s registered address was a residential property, raising further suspicions.
Omission of Complementary Global Tax
As the sole shareholder of Servicios Gastronómicos Chaday SpA, Martínez allegedly directed a substantial portion of food sales revenue directly into his personal accounts, bypassing the company’s accounting system. The unreported income totaled $402,649,274 in 2021,$483,422,378 in 2022,and $170,911,997 in 2023,resulting in a fiscal damage of $529 million.
A Case for Maximum Penalties
The combined impact of these five alleged crimes exceeds $1.45 billion, making this one of the largest tax fraud cases investigated in the O’Higgins region. “The investigation made it possible to establish conduct sustained over time, which extended for at least three business years and which generated a tax loss of more than $1.4 billion for the benefit of the businessman,” stated Marcelo Freyhoffer, the SII’s deputy legal director. The SII intends to pursue the maximum legal penalties and recover the defrauded funds.
The Bío Bío Investigation Unit attempted to contact Óscar Martínez for comment but had not received a response as of press time.
