Source: Valor Econômico

Tax evasion is one of the factors that most compromise the development of an economy, especially when it comes to the economy of an emerging country, such as Brazil. All sorts of justifications are used by tax evaders, from the high tax burden, through the complex steps for paying taxes, to corruption among those responsible for the destination of the tax.

Although totally or partially true, in the vast majority of cases these justifications end up being used more as pretexts for a practice that has been eroding the health of the national economy: unfair competition. In order to face the problem, mega operations are carried out, which are punitive and also have a significant media effect.

In August, for example, the Federal Police carried out one of these initiatives, with coordinated actions in the Federal District and in 17 states. The objective was to recover R $ 1 billion in deviated taxes from the public coffers.

Technology can help when it provides resources needed to track products from the source

These operations are very important, as they are part of the inspection effort. But prevention is also essential to avoid tax evasion.

In that case, technology can help. Especially when it provides the necessary resources for product tracking, from production to sale to the consumer. Mechanisms to track and control products have been developed in initiatives by companies and civil society institutions that have the collaboration of the Union and Federation units.

Two mechanisms have had good results: the Beverage Production Control System (Sicobe) and the Cigarette Production Control and Tracking System (Scorpios). These are two sectors of the economy that are very well organized, but which often suffer unfair competition because they are in the sights of some producers eager to obtain competitive advantages through tax evasion.

Research by the Getúlio Vargas Foundation (FGV) pointed out that more than 60% of sales of spirits occur informally. To change this reality, in 2008 the Union adopted Sicobe, a tool that allows tracking the drink produced in the country. Sicobe sends to the IRS, in real time and directly from the factories, information about the manufacturer, brand, product manufacturing date, volume, packaging, etc.

The results are expressive: one year after its implementation, the collection of federal taxes, such as IPI, PIS and Cofins, increased by 20% in the beverage sector. Success is leading States to repeat the experience, to combat tax evasion such as the ICMS.

The disbursement of R $ 0,03 per unit, in order to reimburse the Casa da Moeda for the system maintenance procedures, provoked a reaction from some small and medium manufacturers. But time must show that it is more worthwhile to invest in prevention to face unfair competition.

The same is true in the cigarette industry. According to industry data, the illegal cigarette trade (contraband, counterfeiting and tax evasion) represents more than 28% of the Brazilian market. Estimates indicate that the collection loss in the sector is over R $ 2 billion per year.

The Cigarette Production Control and Tracking System (Scorpios) is the mechanism used by the Union to identify the route of the marketed product, in order to interrupt the evasion chain. Adopted in 2007, Scorpios also allows you to control the cigarette production and sealing process in real time. Manufactured by the Casa da Moeda, the stamps contain information about manufacturer, brand, date of manufacture and tax class.

States can now also count on the so-called Business Intelligence - Electronic Invoice (BI-NF-e), which adds intelligence to the analysis of data generated by electronic invoices, and is already being implemented in 16 states. It also allows the Finance Secretariats to extract information for better inspection of the segments required to issue the NF-e, mainly in the control of interstate operations.

In addition, it also contributes to increase the collection of the Tax on Circulation of Goods and Services (ICMS). A resource for the States, which makes it possible to expand the collection without increasing the tax burden.

In the drug industry, another sector that is very affected by tax evasion and fraud, control processes are fundamental to guarantee not only competitive equality, but mainly to avoid risks to public health, given the nature of the object. In a statement released in December 2011, the National Health Surveillance Agency (Anvisa) stated that it has already decided on the guidelines that will guide the implementation of the National Drug Control System, as determined by Law 11.903 / 09.

The way to pay taxes must be simplified in Brazil and the destination of taxes must be monitored by society. Regardless, measures to prevent and inspect the collection need to be on the priority list of any public administrator.

With the implementation of the aforementioned instruments, everyone wins. The government, in all its spheres, has more resources to apply to social improvements; the private initiative, which now has more equitable market conditions, and society in general, which can consume tested and approved quality products, from their manufacture to the point of sale.

Roberto Abdenur is President of ETCO