Tax substitution opens a gap to evade ICMS
Author: Carolina Freitas
Source: Época Negócios - São Paulo / SP - 08/01/2010
The tax substitution regime opened a gap for the evasion of R $ 2 billion of the Tax on Circulation of Goods and Services (ICMS) in the last three months. The calculation is made by the São Paulo State Finance Department, which today forwarded 1.743 criminal representations to taxpayers against taxpayers who passed on the value of the tax on their goods without actually paying the tax. The action is part of the National Operation to Combat Tax Evasion, which took place this Tuesday in ten states.
"Not passing on to the Treasury the ICMS charged to the merchant is a form of misappropriation," said the tax administration coordinator of the state Treasury, Otávio Fineis Júnior, at a press conference at the secretariat's headquarters, in the center of the city of São Paulo. “Tax substitution, when circumvented, gives a greater advantage to those who are working illegally, as the tax evader ends up paying zero tax. The model has this drawback. ” Despite this, Fineis ruled out the government's review of the regime. "Tax substitution is effective against tax evasion, but it does not solve all problems."
The model transfers to the beginning of the production chain, that is, the producer, the collection of ICMS from the other phases to the final consumer. Governor José Serra (PSDB) adopted the regime in 2008 and, since then, more sectors have been included in the system - today there are 23, including food, construction, auto parts, medicines and household appliances.
The action of São Paulo tax agents also targeted companies that maintain fleets of registered cars outside the state and would be withholding the IPVA. Fifty-four establishments from five major companies were notified to provide information about the entire fleet at their disposal.
Today, the Finance Department also intensified the work of Operation De Olho na Bomba, with visits to 124 gas stations, expiration of 11 operating authorizations and 96 notifications of renewal of registration with the Tax Authorities so that the stations detail their data with the Secretariat.
(Carolina Freitas)
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Tax substitution opens a gap to evade ICMS
Source: LegisCenter - SP - ARTICLES - 18/11/2009
The tax substitution regime opened a gap for the evasion of R $ 2 billion of the Tax on Circulation of Goods and Services (ICMS) in the last three months. The calculation is made by the São Paulo State Finance Department, which today forwarded 1.743 criminal representations to taxpayers against taxpayers who passed on the value of the tax on their goods without actually paying the tax. The action is part of the National Operation to Combat Tax Evasion, which took place this Tuesday in ten states.
"Not passing on to the Treasury the ICMS charged to the merchant is a form of misappropriation," said the tax administration coordinator of the state Treasury, Otávio Fineis Júnior, at a press conference at the secretariat's headquarters, in the center of the city of São Paulo. “Tax substitution, when circumvented, gives a greater advantage to those who are working illegally, as the tax evader ends up paying zero tax. The model has this drawback. ” Despite this, Fineis ruled out the government's review of the regime. "Tax substitution is effective against tax evasion, but it does not solve all problems."
The model transfers to the beginning of the production chain, that is, the producer, the collection of ICMS from the other phases to the final consumer. Governor José Serra (PSDB) adopted the regime in 2008 and, since then, more sectors have been included in the system - today there are 23, including food, construction, auto parts, medicines and household appliances.
The action of São Paulo tax agents also targeted companies that maintain fleets of registered cars outside the state and would be withholding the IPVA. Fifty-four establishments from five major companies were notified to provide information about the entire fleet at their disposal.
Today, the Finance Department also intensified the work of Operation De Olho na Bomba, with visits to 124 gas stations, expiration of 11 operating authorizations and 96 notifications of renewal of registration with the Tax Authorities so that the stations detail their data with the Secretariat.
