The challenges of fighting him

Ending the defaulting debtor requires more determination of the tax authorities and special weapons, which are the subject of an important discussion in court. Understand why


In theory, getting the default debtor out of the market could be simple. The tax authorities would do careful prevention work to identify suspicious attitudes, such as transferring the company to an orange or disposing of the assets, and taking steps to prevent the debt from becoming unpayable. Unresolved cases in the administrative collection stage would quickly reach the courts, which would also be quick to separate the wheat from the chaff, that is, verify whether the action refers to a persistent debtor or not. In a short time, the company would be judged, condemned and forced to act correctly or disappear from the map.

Unfortunately, Brazil does not yet meet this set of conditions, and the battle has been much more complicated. Prevention is not exactly the specialty of the tax authorities; Justice is slow, and specific laws are lacking to condemn this practice. "It is often difficult to find out who the real debtor is, where his assets are, before the debt ends up being too high, and these charges, immense and impossible," says judge Paulo Sérgio Domingues, of the Federal Regional Court of the 3rd Region.

The good news is that the forces that fight the heavy debtor are taking shape, bringing together judges, lawyers, tax administrators and associations. “We need to find weapons to fight them,” says Evandro Guimarães, president of ETCO-Brazilian Institute of Ethics in Competition, which defined the fight against the persistent debtor as one of his priorities. “The systematic, premeditated, non-paying tax is a major terrorist in the business environment.”