Tag: Contumaz Debtor

ETCO develops material with the objective of clarifying in a clear and simplified way, what is the Debtor Contumaz, the losses that this type of debtor causes to the country and how we must combat it.

Tighten the siege against the heavy debtor

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New legislation of the State of Paraná

starts to differentiate the default bad debt

 

Decree No. 3.864, published by the Government of Paraná on April 14, starts to differentiate the regular debtor, creating specific rules and sanctions for those who make default a business model that, according to experts, configures unfair competition and damages public accounts . The executive president of ETCO - Sindicom's partner institute on this issue -, Evandro do Carmo Guimarães, estimates that the gap caused by these debtors in the accounts of the Union and the states is at least R $ 3 billion per year.
Luciana Printim, head of the Paraná State Revenue collection sector, says that the impetus for the new legislation came from the conclusion that there were many taxpayers “who make their default not an occasional thing, a time of difficulty, but a repeated thing; persistent practice. We started to realize that this was not being fair competition with the others, who pay their taxes correctly ”, describes Luciana, adding that the tax that is not paid increases the profit margin of those who do not pay.
The state of Rio Grande do Sul was a pioneer in this differentiation and has one of the most important specific laws against the country's persistent debtor. It was created in 2011 and has since managed to recover R $ 17 million owed by these taxpayers and reduce by 26% the number of companies in this situation. Luciana clarifies, however, that the legislation of Rio Grande do Sul was studied and considered valid, but even so, there are differences between the laws of the two states. “The main difference is that they do not allow the customer of a frequent debtor to have ICMS credit. Our intention is to punish the debtor, not the client, ”he says.
Luciana also explains that there are several sanctions that apply when serious debtors are identified. They include the loss of tax benefits, in addition to the obligation to collect the tax per operation (for each sale) and not for calculation (only once a month). “The taxpayer will be notified and will have 30 days to qualify. Our main objective is for him to stop this practice, which is not sectoral ”, he concludes, counting that this month (May) the first batch of notifications will be made to regular debtors.
According to ETCO's executive chairman, long-term debtors are usually wholesale or distributor companies. “It is common for this business to be in the name of oranges, it has no equity. Thus, true partners escape punishment, ”says Evandro. The executive president also indicates that the profit margin can be increased considerably through this practice. “If it is a company that distributes fuels, it can represent up to 30% of the product's price; if it is a cigarette, up to 70% of the product price ”, he points out.
The importance of the actions developed by ETCO, together with Sindicom, to better explain the difference between the persistent debtor and the one who occasionally experiences some financial difficulty promotes the creation of legal tools to combat this practice, also emphasizes Evandro.
“We hope that the Federal and State legislatures also separate these two different types of defaulters. In a country where the active debt of the states and the union is huge, it is very important to separate the types of debtors ”, he concludes.
Source: Sindicom

Paraná publishes Decree Law on the Contumaz Debtor of ICMS

DEBTOR CONTUMAZ PARANA

 

The State of Paraná published Decree Law No. 3.864, which qualifies the Contumaz ICMS Debtor, also establishing that the CRE (State Revenue Coordination of PR) may determine a special control, inspection and payment regime for taxpayers considered permanent debtors. .

This is one of the ways that the ETCO defends: the inclusion of the concept of incumbent debtor in the new rules for the collection of the Union's active debt and instruments to combat companies that practice anti-competitive prices.

Click here and access the full Decree Law

 

 

ETCO publishes special content on the fight against CONTUMAZ TAX DEBT

debtor-contumaz-of-tributes-carouselOne of ETCO's priority projects is the fight against the Contumaz Tax Debtor, which, unlike the tax evader, issues a note and notifies the tax authorities that it has sold its products, but does not collect taxes on it and uses this illicit advantage to reduce its prices and gain market unfairly. Understand what the default debtor is and what we can do to combat it

The persistent debtor and unfair competition

The main conclusions of the event held by ETCO in partnership with the newspaper Valor Econômico

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Gaining an advantage over competitors, gaining a market and increasing profits through systematic non-payment of declared taxes: this is what the so-called heavy duty debtors do, businessmen who make default a way to gain market quickly. To debate the main issues surrounding the theme, the ETCO-Brazilian Institute of Competition Ethics promoted on the 16th of November, in partnership with the Valor Econômico newspaper, the seminar “The Debtor Contumaz and Competition Ethics”.

The event received judges, judges, lawyers, as well as the Federal Revenue Secretary, Jorge Rachid, and the São Paulo Finance Secretaries, Renato Villela. “Duty to tax is a taxpayer’s right under normal conditions,” recalled Evandro Guimarães, president of the ETCO Institute. “Making it your own business is a crime. We need to find weapons to combat this practice ”.

The Seminar showed the actions that are being developed by the Federal Revenue Service and the Secretariats of Finance to recover tax credits and discussed the need for legal instruments to punish the taxpayer who declares tax, but does not pay it systematically. It also presented the case of the state of Rio Grande do Sul, which established a differentiated collection regime for the frequent debtor and obtained important results.

To deepen the discussion, ETCO is preparing a publication with the points covered and the paths that were presented at the event, which should be launched next month.

 

 

 

Debt with tax authorities has heavy fine

I owe and don't deny, I pay when I can. Such decisions do not help companies that owe the tax authorities, let alone exempt them from fines and sanctions. Their situation is aggravated when there is a lawsuit for the collection or execution of tax debts in progress. However, the severity of the fines' punishment is not linked to the nature of the tax, but to the way the taxpayer declares it, explains Márcio da Costa, president of the FecomercioSP Tax Affairs Council and the Taxpayer Defense Council (Codecon)

Source: Valor Econômico (18/11)

To read the full story, click here.

Lack of specific legislation prevents strict punishment

The Brazilian legal system is going through a phase of reformulation of its set of laws, with more specific rules, which typify certain forms of crime. It is, for example, what can be observed in Law 12.486 / 2013, known as the Anti-Corruption Law, which has a total focus on administrative and civil liability of companies that commit harmful acts against the public administration. But, in the case of the figure Debtor Contumaz, there is still “a legal vacuum”, in the opinion of tax lawyer Hugo Funaro. “Traditional mechanisms are insufficient. Some states are resorting to different regimes, but this works like net fishing. They take together both big debtors and hard debtors, ”he says.

Source: Valor Econômico (18/11)

To read the story straight from the source, click here.

Stubborn debtor

In the midst of the economic crisis and a drop in federal government revenue, and with a balance of R $ 1, 3 trillion to be received in tax debts, the IRS establishes working groups with new strategies to redeem part of this liability. The objective is to permanently monitor the debtor's assets, in general the large companies that resort to legal tricks to protect their assets from the tax authorities.

Source: Valor Econômico (18/11)

To read the full story, click here.

Watch the transmission of the event Debtor Contumaz and the Competition Ethics

The event is sponsored by ETCO-Brazilian Institute of Ethics in Competition and discusses topics such as typification of permanent debtors, differentiated inspection regimes, market impacts and limits on free competition.

The seminar is aimed at presidents, CEOs, lawyers, corporate legal department executives, public farm attorneys, federal judges, judiciary officials and members of the judiciary and legislative branch.

Click here and watch now.