Recipient's Statement reaches the entire fuel chain in July 2014
Inclusion of the mandatory validation of banknotes in the “alcohol for other purposes” segment can inhibit the adulteration of ethanol and gasoline; proposal will be submitted to Confaz in December
As of July 2014, the Recipient Manifestation project should reach a new and important segment of the fuel chain in Brazil: that of alcohol for other purposes. This is because this type of alcohol, which excludes ethanol, is widely used in adulterating fuels, and the obligation to validate banknotes by the recipient company should inhibit this practice.
According to the general coordinator of the National Meeting of State Tax Coordinators and Administrators (Encat), Eudaldo Almeida de Jesus, the proposal will be submitted in December to the National Council for Farm Policy (Confaz). “The requirement for this segment has not yet been regulated because the system is still in the pilot project phase”, he explains. "The approval will close the fuel chain." According to him, since March 2013 the requirement became valid for liquid fuel distributors - except alcohol for other purposes - and, in July, for gas stations and transporters and retail resellers throughout Brazil.
The start of mandatory requirements for other sectors has not yet been defined. "Currently, other sectors can spontaneously use the Recipient Manifestation, but only the fuel sector is mandatory", observes Eudaldo. Fines vary by state.
Developed by Encat, the Recipient Manifestation project has the support of ETCO and allows the notes to be validated by the recipient company. This action protects companies from tax administrative proceedings and avoids tax evasion and the issuance of notes that are not consistent with reality. The intention is to prevent fraudulent operations in the movement of goods, for example, shipments to a recipient other than that indicated in the tax documentation, or ghost and irregular companies, thus allowing to control and minimize the occurrence of this and other frauds, which often involve the misuse of registration data of suitable companies.
