Source: Gazeta - MT, 07/09/2007

Brasilia
State Agency

The Federal Revenue Secretary, Jorge Rachid, stated that the Provisional Contribution on Financial Transactions (CPMF) is a very effective tax for inspection, functioning as the basis for a large number of investigations on the payment of taxes and contributions. According to Rachid, in 2006, the CPMF was the starting point for 13% of the tax credit generated by legal entities supervised by the Revenue. The Provisional Contribution on Transactions was also the basis for the inspection of 56% of individuals.

In the case of special operations involving the PF and the MP, he said that the CPMF was used as evidence in 41% of individuals and 28% of legal entities. “CPMF has been tested and approved. It is effective. To take another measure to replace the CPMF is to take a risk ”. Rachid pointed out that the agency strives to reduce unfair competition in the economy, as tax evasion creates distortions in competition between expenditures. The Federal Revenue Secretary also presented data from 2004 in which the agency collected more than R $ 500 million from taxpayers who, in some way, are outside the tax system, such as those exempt. “Sometimes people want very sophisticated taxes. I choose efficiency ”. Rachid also informed that this year the secretariat collected R $ 4,38 billion in interest and fines related to taxes and contributions.