Repatriation of resources opens extensive agenda in Plenary on Tuesday

Senators enter the last week before the parliamentary recess with a Plenary agenda that promises long debates, whether due to the complexity of the issues or the political importance. Already aware of this, President Renan Calheiros announced that the deliberative session on Tuesday (15) will have early votes to 14 pm. Before that, at 11 am, a meeting of leaders is scheduled, from which changes can come out in the list of projects to be analyzed.

One of the propositions that most interest the government is the second item on the agenda. This is the House Bill (PLC) 186/2015, on the repatriation of funds held abroad that have not been declared to the IRS.

The text was approved on December 2 by the Special Committee on National Development and received a favorable opinion from the rapporteur, Walter Pinheiro (PT-BA). The collegiate also approved the urgency request for the Plenary vote.

According to the proposal, Brazilians and foreigners residing in the country will be able to declare all lawful assets held outside Brazil, or already repatriated, but not yet declared, existing until December 31, 2014.

Senator Walter Pinheiro proposes that part of the funds raised from repatriation go to the National Regional Development Fund (FNDR) and, for that, he presented a proposal to amend the Constitution (PEC 154 / 2015), which is also on the agenda for this Tuesday (15th).

PEC also creates a compensatory fund for the states, with a duration of eight years, aiming at the unification of the rates of the Tax on Circulation of Goods and Services (ICMS).

Source: Agência Senado (9/12)

Walter Pinheiro proposes that repatriation resources combat regional inequalities

He is on the Constitution, Justice and Citizenship Commission (CCJ), awaiting the appointment of rapporteur, the Proposed Amendment to the Constitution (PEC) 154/2015, by Walter Pinheiro (PT-BA), which allocates part of what is collected through the repatriation of resources for the creation of the National Fund for Regional Development (FNDR). The proposal also creates a compensatory fund for the states, with a duration of eight years, aiming at the unification of the rates of the Tax on Circulation of Goods and Services (ICMS).

The government seeks through the Special Regime for Foreign Exchange and Tax Regularization, to be created after the approval of the Bill of Law of the Chamber (PLC) 186/2015, make possible sources of funds with the application of income tax and fine on assets and assets of lawful origin kept abroad that are regularized with the IRS.

According to PEC 154/2015, the Regional Development Fund should receive, from this and other sources, at least R $ 3 billion per year, during the first five years. To the ICMS convergence aid fund, R $ 1,5 billion should be allocated annually in its eight years of effectiveness. Still according to the proposal, the FNDR should prioritize the Northeast, Midwest and North regions, with the Northeast receiving 50% of the resources.

The ICMS convergence aid fund will allocate its resources in proportion to the losses recorded in each state. If the eight-year term is over and there are still losses, the fund should be extended for another two years.

STF Summary

Pinheiro recalls that the Supreme Federal Court (STF) can vote at any time on the Súmula Vinculante 69, which makes all tax incentives granted since the 1990s unconstitutional, such as those dealing with the ICMS.
- If this occurs, there will be unpredictable economic and social consequences for several states, such as the cancellation of scheduled investments, the closure of production units and the increase in unemployment - he warns.
The senator believes that this is a fundamental complementary measure related to the reform of the ICMS interstate tax system, which is already being debated in the Senate through the PRS 1/2013.
Source: Agência Câmara (7/12)

To understand the fiscal war

Fiscal WarTax incentives involving the ICMS are the cause of tax war between states, legal challenges and legal uncertainty in the country's competitive environment. ETCO-Brazilian Institute of Ethics in Competition supports the drafting of laws and actions to solve the problem. To clarify those interested and give more visibility to the topic, the Institute created a folder with the main points under discussion and their positioning.

The newsletter is available in the publications area of ​​the website or at the institute's headquarters. More information by phone (11) 3078-1716 or email to