BRASILIA (Reuters) – Brazil’s authorities proposed tightening the screws on habitual tax evaders in a invoice it despatched to Congress this week, suggesting a broad new framework to promote tax compliance.
The bundle consists of defining technical standards for habitual tax evaders, and shutting loopholes that usually prevented their arrest.
“In Brazil, almost no one has ever been arrested for crimes against tax order,” tax income secretary Robinson Barreirinhas instructed a press convention on Friday, noting that till now, such circumstances resulted in taxpayers merely paying the debt to droop punishment.
Under the proposed guidelines, but to be permitted by lawmakers, there would now not be a proper to extinguish punishment if the debt is paid.
Barreirinhas revealed that these with irregular money owed exceeding 15 million reais ($3 million) and surpassing their belongings shall be thought-about habitual debtors. If they select not to regularize their scenario, they are going to be listed in a registry.
According to the tax income service, round 1,000 Brazilian taxpayers fall into this class, accounting for roughly 100 billion reais ($20 billion) in debt.
The invoice introduces a number of different modifications, together with transparency on these benefiting from tax incentives.
The purpose is to allow the federal government to adjust to a constitutional directive that, in 2021, mandated the discount of tax advantages from 4.5% of Gross Domestic Product (GDP) to 2% over an eight-year interval.
“We are not eliminating the tax benefit. We are providing governance over this benefit. We will see who is benefiting, who is using it, and, with this, verify if they really have the right to it,” mentioned Barreirinhas.
The invoice may also embrace packages to encourage tax compliance by corporations, providing advantages for self-regularization. Barreirinhas mentioned the bundle of measures would wish to be in place for a while to increase authorities revenue considerably.
($1 = 4.9481 reais)