The government closed an agreement with the National Congress to unlock the reform of the ICMS (Tax on Circulation of Goods and Services), which is state. The last obstacle was the creation of a fund that will compensate the states for changes in the tax rate. But the Minister of Finance, Joaquim Levy, sewed with parliamentarians a settlement whereby the source of funds for this fund will come from the tax collection that is obtained with the repatriation of money sent abroad without being declared to the IRS. The measure is in a bill that is already pending in Congress and will be put to a vote in the coming days.

The idea is to open a deadline for taxpayers to enter this money in Brazil, settle accounts with Leão and be amnestied for crimes such as tax evasion, foreign exchange evasion and money laundering. When the funds enter the country, they will be taxed at a rate of 17,5% in Income Tax (IR) and a further 100% fine. According to parliamentarians' calculations, the collection potential is at least R $ 40 billion, half of which would go to the state funds.

Source: O Globo (09/07)

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