SANTIAGO (Reuters) - Chile's internal revenue service (IRS) said on Monday that it has asked a local court to initiate a criminal investigation of President Michelle Bachelet's daughter-in-law, Natalia Compagnon, for tax crimes.
The IRS's request concerned alleged tax crimes "related to the filing of maliciously false tax declarations, incorporating false invoices into the accounting of the company (Exportadora y de Gestion Caval ltda.), and illegally reducing the tax base on income that needed to be paid."
The request for an investigation grew out of accusations that Sebastian Davalos, Compagnon's husband and Bachelet's son, used his political connections to get his spouse access to a $10 million dollar loan that she used to turn a quick profit on a real estate deal.
The scandal, which came to light in February last year, has tarnished Bachelet's reputation and hurt her popularity.
The IRS said it has also requested that the court investigate Compagnon's business partner, Mauricio Valero Illanes, and four other individuals for their role in the alleged tax crimes.
It has not requested the court to investigate Davalos.
(Reporting by Anthony Esposito; Editing by Steve Orlofsky)