Source: Legal Consultant - São Paulo / SP - 07/10/2010

Brazil does not need a tax reform, but a simplification of its tax collection system. The assessment is by the president of the Brazilian Institute of Tax Studies (Ibet), Paulo de Barros Carvalho, who opened this Wednesday (6/10) the XNUMXth International Congress on Tax Law in Pernambuco, held in Recife. He pointed out that it is necessary that the Union, the states and the municipalities stop fearing the reduction in the collection of taxes and start to rationalize the system for the benefit of all.

“Our tax system works well, as it allows the State to collect taxes and offers mechanisms for taxpayers to defend themselves against abuse. However, this does not mean that it works for good. The taxpayer has numerous instrumental and formal duties, as well as several taxes to be paid. There needs to be a political effort to simplify the system, ”explained Carvalho.

Currently, Brazil has taxes that are levied on practically identical bases, income tax at source, contributions on company revenues, taxes and contributions required on imports of inputs, goods and goods, and a lot of bureaucracy, as the rules of the Brazilian tax system oblige the taxpayer to provide detailed information on the payment of taxes. “The problem is not always with the tax burden. Many taxpayers also complain because the State's return is small in relation to what we pay in taxes, ”said Carvalho. For him, if the simplification of the system came only from the Union, the results would already be positive.

Lack of clarity

Professor Mary Elbe Queiroz, president of the Pernambucano Institute of Tax Law (Ipet), understands that the Brazilian system is not clear. There must be rules that regulate the relationship between the tax authorities and the taxpayer, he argues. “We have cascading taxation, withholding tax and a system that charges taxpayers. From 1% to 1,5% of the companies' payroll is dedicated to taxes, not only to the payment of taxes, but to the costs of documents, guides, fees, records, declarations necessary to avoid evasion. ”

It advocates tax reform, but only if it is really effective. “Since the 1988 Constitution, we have had 13 reforms, none of them consistent in the sense of improving taxpayers' lives. This is because the reforms are aimed at increasing the tax burden. ”

Mary Elbe also pointed out that two complementary bills, one by deputy Sandro Nobel (PR-GO) and another by former senator Jorge Bornhausen (DEM-SC), which provide, in a single law, all the taxpayer rights, which today if they are in disarray and scattered in several legislations are stopped in Congress. “There is a fear that this code will benefit the tax evader. There is a lack of a better discussion about the taxpayer's rights, and not only about the tax burden. ”

Also participating in the opening ceremony of the event were professor emeritus from PUC-SP, José Souto Maior Borges, and the attorney general of Pernambuco, Francisco Tadeu Barbosa Alencar. The Congress will be held until this Friday (8/10) and will bring together the main Finance authorities and experts in the tax area.
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