By Antonio De la Jara
(Reuters) - The daughter-in-law of former Chilean president Michelle Bachelet is facing four years' imprisonment after she was found guilty on Wednesday of tax evasion by a court in the southern city of Rancagua.
Natalia Compagnon was convicted after an investigation that lasted several years and was seen as having dented Bachelet's reputation and hampered her attempts to push a reformist agenda through a divided congress.
Compagnon was investigated in what became known as the Caval Case, after her real estate firm Caval Export and Management Ltd, for issuing false tax declarations, submitting fraudulent invoices and misrepresenting her income.
She was found guilty of tax evasion between 2012 and 2015, according to the court.
Prosecutors have asked for her to be jailed for four years and fined the equivalent of 300 percent of the $165,400 taxes evaded.
(Reporting by Antonio de la Jara, writing by Aislinn Laing; Editing by Susan Thomas)