Tag: taxation

Ideal time to rethink taxes

The simplification of the tax system and the burden on various sectors, such as fuels, one of the ones that most pay taxes in the country, were some of the topics of Correio Debate. Authorities, such as João Otávio de Noronha, president of the STJ and André Luiz Mendonça, attorney general of the Union, attended the meeting, which took place on 21/08/2019. ETCO's president, Edson Vismona, was also one of the speakers and spoke about the need to simplify the tax system, as one of the tools in the fight against stubborn tax debtors.

Jornal Correio Braziliense published the full coverage of the event in a special section and also on the website.

See here the link to the main articles:

Current model makes room for tax evasion [click here]

In the sector that most collects in the country, that of fuels, besides the complexity, there is still the chaos of each of the Federation units to practice different rates for products, points out the president of ETCO

 

 

 

 

 

 

 

For improvements, legislation needs to be reformed [click here]

A defaulting debtor is protected by law, which treats defaulting taxpayers equally for different reasons. Identifying the fraudster is critical

Change the federal pact to decentralize tax collection [click here]

Government intends to advance the discussion on tax reform, without increasing the burden, currently at 33% of the Gross Domestic Product. To do so, it will have to face several challenges, says the Union's attorney general

Reduce cost with default defaults competitive mechanism  [click here]

The selection of the market puts the most efficient and productive in better conditions. When the dishonest ones stand out, there is a distortion, points out the secretary of Competition and Competitiveness of the Ministry of Economy

The country's complex system leads to excessive judicialization  [click here]

Disproportionate taxation, with a lot of cumulative taxes, provokes a taxpayer reaction, which seeks to discuss the reduction of the burden in court, Power not appropriate for discussion

Experts defend few rates to avoid chaos [click here]

Congressman Alexis Fonteyne (Novo-SP) points out that many entrepreneurs who are taxed today as tax debtors are victims of the complexity of the Brazilian tax system

Taxation Seminar in Brazil

ETCO, in partnership with the newspaper Valor Econômico, held on Tuesday (July 23), in São Paulo, the Taxation in Brazil seminar.

The event brought together renowned experts to discuss how tax reform can contribute to Brazil's growth. Access here the exclusive articles covering the event, published on July 30, in a special section of the Valor Econômico newspaper:

Illegality advances and funds violence

In an interview, Edson Luiz Vismona, chief executive of ETCO, tells how smugglers and heavy debtors benefit from the tax system.

Tax review is crucial to the country

Brazilian system is put in check by experts during Taxation seminar in Brazil

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"We don't need to unify taxes"

Roberto Mosquera defends minor changes with more significant economic results

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Smuggling is an evil to be fought

Tax review should prioritize productive sector and focus on weakening the illegal market

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"History in Brazil is a big mistake"

Belief that foreign models can be reproduced here is a mistake, says tax expert

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Fiscal balance challenges lawmakers

Sustainable and harmonious taxes will favor more advantageous negotiations

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"We don't need to unify taxes"

For the doctor and professor of Tax Law Roberto Quiroga Mosquera, the ideal would be for less drastic changes to be made than those currently being discussed by the government. He believes that one way is not to focus on tax unification.
“It is no use just joining the taxes that already exist and putting a different name for them” - says Mosquera. As an example, he cites so-called excise taxes, taxes on specific products such as fuels, tobacco and energy. “We already have our
IPI (Industrialized Product Tax). It is a selective tax, which represents less than 5% of the collection, but which already takes the place of excise taxes. There is no need, therefore, to change this tax. ”
For him, taxation alone will not be enough to change the situation in Brazil. “Currently, R $ 1,4 trillion is collected
federal taxes, 80% of which are levied on income and revenue. It would hardly be possible to raise so many resources otherwise. With only 5% of the population earning more than R $ 4 thousand, it is complicated to transfer taxes in an economy
that is stagnant. It is necessary to have an economic change to then make the taxation accompany it. ”

CONTENTIOUS TAX

Another difficulty is tax litigation, litigation between companies and the tax authorities. According to Mosquera, there are about 15 thousand companies in this situation, which will end in a discussion in the Judiciary with a ten-year term and a decapitalization of the company, which can generate a major macroeconomic problem.
“And today it is not easy to discuss a tax issue within the federal court. Judges demand guarantees, and this is costly for a
company." According to Mosquera, the tax rule has to adapt to the country's economic factors.
“There is no use for a magic rule to solve the economic problem. It is the substrate of the tax issue. Of course, it will impact business, but that means she is not the savior of the country. We need to change the economy a lot to have a tax rule that is really efficient. ”
For Mosquera, it is necessary to create specific solutions for the country and not have principles based on parameters from abroad.
“What to do so that there is no more cigarette smuggling in Brazil? Eventually companies that manufacture cigarettes
Premium can produce other products to compete with the tax evader. You need to know the Brazilian reality to find the best solutions. ”
As alternatives for greater efficiency in Brazilian taxation, Mosquera points to small reforms, which can be much more assertive. “I find it difficult for the merger of taxes at the federal, state and municipal levels to be accepted. But taxing fate and not origin is an interesting idea. And sometimes, a value added tax, thinking about public finances, may be the most correct. ”

History in Brazil is of great misunderstandings

In his explanation at the Taxation seminar in Brazil, tax attorney Everardo Maciel, former secretary of the Federal Revenue Service, brought up contemporary tax issues, both in Brazil and in the world - and the main differences in approaches in these scenarios. When it comes to the Brazilian situation, Maciel points out that this is a point of enormous social rejection, and that is why it is easy
find many hasty conclusions on the topic. Among the highlights, he points to the belief that foreign models can be easily reproduced here, without taking into account legal aspects of our reality. The fact that many professionals affirm that the tax system is extremely complex is also a belief that, according to him, needs to be analyzed.

- Complexity is inherent in the system. It needs to be operable and not simple. There are 27 ICMS laws, for example, and you need to have that, because the tax is state. But in general everyone is very similar to each other, except in special situations.

Among the main tax problems in Brazil today, the expert highlights points such as excessive litigation and bureaucracy - however, always stressing that this is a problem with the tax process and not with the tax itself. Therefore, solutions such as joining ICMS and ISS are considered simplistic.

- They are different taxes, with different destination. How is the federative issue? How is all the jurisprudence that exists around this? It is like throwing dirty water with the child in the basin. Is that what you want to do? Or is there a lack of willingness to think about it and find solutions with some degree of creativity?

The tax collector recovered the history of tax reforms that have already taken place in Brazil and assessed the trajectory as being more mistaken than correct. In his opinion, most interventions carried out after 1965 can be classified as disastrous. And Constitutional Amendment Proposal 45, known as the PEC for tax reform, follows the same line of misunderstanding.
According to Maciel, there are currently three major tax issues being discussed in various locations around the world: the erosion of tax bases; the taxation of the digital economy; and new sources of social security financing.

- The transfer of capital and the taxation of profits from countries with higher taxation to countries with lower taxation or without taxation, tax havens, is something that bothers everyone - he highlights.

The taxation of the digital economy, a highlight in this scenario, draws attention mainly for the creation of the GAFAM tax - currently under discussion in countries like France and the United Kingdom. It is an initiative of local governments to tax the big technology companies: Google, Apple, Facebook, Amazon and Microsoft. He also talks about the possibility of taxing financial transactions and robots as a way of financing social security.

Fiscal balance challenges lawmakers

Sustainable and harmonious taxes will favor more advantageous negotiations

Taxation and a sustainable economy presuppose adequate taxation. It cannot be very low, to allow the financial health of the State, and it cannot be high, to the point of stifling the economy and making business impossible. With this explanation, Phelippe Toledo Pires de Oliveira, deputy attorney general of the National Treasury, summed up the State's challenges in developing policies conducive to business development in the country during the Taxation seminar in Brazil. For him, reflecting on whether the tax bases are correct and whether they can be improved is of great relevance to the national scenario.
According to data from the latest study conducted by the Federal Revenue, in 2017, taxation in Brazil is based on consumption and the payroll. The rate on equity is less than 5%, while the rate on income is less than 20%, on consumption it is 48% and the one on payroll is 26%.
- Complexity is inherent to our tax system. It is complex because we have different tax types in the Brazilian system: taxes, fees, improvement contributions, compulsory loans. And each of these species still has its own taxes: Income Tax, contribution on the payroll, etc. Being complex, however, does not mean that it cannot be simplified.
For Oliveira, the challenges are great, and this is a great time for this discussion. To illustrate, he explains that currently the country has about 6 million tax foreclosures per year, only within the Union. There are approximately 1 million taxpayer lawsuits against the federal tax administration. The Deputy Attorney General recognizes that it is necessary to think about specific changes to simplify the system and reduce litigation. However, you need to be aware of
do not generate other unwanted occurrences.
- The end of the dividend exemption, for example, while bringing a benefit to end the discussion of disguised distribution of profits, also generated the phenomenon of "Pejotização" to pay less taxes. The individual who would receive that income taxed at a higher percentage creates a Legal Entity to be taxed at a percentage
smaller.
Oliveira also highlighted points such as the reduction of rates as a condition for the broadening of the bases. Despite the fact that tax benefits exist worldwide, it is necessary to ask whether they are fulfilling the purpose
should comply.
- The moment is to bring up these discussions, which until then were not very common in the tax sphere, but unusual among society.
Regarding tax reform, Oliveira says that the government's intention is to discuss the proposals and make the best of each one to arrive at a solution that is viable and reasonable for tax simplification.
- The desirable reform, in my opinion, is one that respects the federal pact, promotes simplification
and respect the fundamental rights and guarantees of the taxpayer.

Tax review is crucial to the country

Brazilian system is put in check by experts during Taxation seminar in Brazil

Marcos Lisboa draws attention to the tax discrepancy

"We have to recognize that there is something very wrong with our economy, because the world is growing and getting rich, but Brazil is not."  The statement was made by economist and president of Insper, Marcos Lisboa, during the seminar on Taxation in Brazil, held by the newspaper VALOR ECONÔMICO in partnership with the Brazilian Institute of Competition Ethics (ETCO), on Tuesday, July 23, in São Paulo. Paulo. The event brought together renowned experts to discuss how the tax review can contribute to Brazil's growth.

"The tax regime directly affects economic decisions and investments made in Brazil. It is crucial that we discuss tax change, as it will largely contribute to the country's growth. ” For the economist, there is already an agenda of tax micro-reforms that the Secretary of Finance can put into practice.

"First, it is necessary to correct this tax discrepancy, adjust foreign trade and end the insecurity regarding investment in infrastructure" - says Lisbon, defending that the tax rules together with the industrial and education policies are the most important factors for the
countries' growth.

CORPORATE TAX

One way for the economy to develop, according to Lisbon, is to promote the internationalization of companies. But, for that, he explains, Brazil needs to do like the countries that reduced the corporate tax to about 20%. Today, Brazilian companies are not as competitive and have less growth. It also points out that it is necessary to have greater clarity regarding infrastructure works to attract more investments, which can also contribute to the recovery of the economy.
Lisbon defends the value added tax (VAT), which is the most used in the world and can be applied in Brazil. Through it, taxation is made on the amount sold and all taxes that were paid before are discounted. Regarding the CPMF, the economist has his reservations and says that it increases the demand for money, reduces the supply of credit and generates less growth
industry.

The Taxation seminar in Brazil was held at the Tomie Ohtake Institute. In addition to Marcos Lisboa, tax attorney Everardo Maciel, former secretary of the IRS; Edson Vismona, president of ETCO and the National Forum Against Piracy
and Illegality; Phelippe Toledo Pires de Oliveira, Deputy Attorney General of the National Treasury; Roberto Quiroga Mosquera,
doctor and master in Tax Law; and Efraim Filho, federal deputy. The mediation was carried out by journalist Samy Dana, a columnist for the financial education website Valor Investe and a professor at the School of Business Administration at Fundação Getúlio Vargas (FGV).

The main highlights of the experts' discussions were the challenges of a change in taxation that would bring gains for both the State and taxpayers and provide for national development. The speakers also explained the reasons why the current tax system favors illegality and smuggling in the country, enabling consolidation
of hard-hitting debtors.

Smuggling is an evil to be fought

Tax review should prioritize productive sector and focus on weakening the illegal market

 

 

The fight against the illegal market that took over the country and expectations regarding the tax review were the main issues addressed by the federal deputy and president of the Mixed Parliamentary Front to Combat Smuggling and Counterfeiting, Efraim Filho, at the Taxation seminar in Brazil.

For the deputy, the productive sector needs to be prioritized and be able to maintain his business. “The problems are not circumstantial, they are structuring. There is a rule in the country to make life easier for the State, the collection, but not to collaborate
with the taxpayer. It is necessary to value those who create jobs and offer opportunities. ”
He questioned the fact that the cigarette sector, for example, has almost 60% of the illegal market. “We are failing to collect taxes and generate jobs. Smuggling is extremely harmful to society. ”
According to Efraim Filho, society is tolerant of small deviations, but when investigating, it is possible to see that the market
illegal finances organized crime, generates evasion of foreign exchange, loss of revenue, in addition to harming the formal labor market and offering a product without registration or control by Anvisa. “It is a game of lose lose. Smuggling inhibits business and needs to be fought. ”
For him, during the period when the country's economy was growing, contraband was not adequately combated
and settled down. However, in times of crisis, increasing losses have been a cause for concern for Brazilian companies.

ROLE OF THE CONGRESS
According to the deputy, despite the challenges, there is fertile ground to advance the discussion on tax reform. For Efraim Filho, the role that Congress assumed in pension reform should be repeated in this agenda. He says the intention is that the productive sector, the Federal Revenue and the government give their opinions so that the proposal has legitimacy.

"We have chosen president and rapporteur, the special tax reform commission is installed, but public hearings must take place so that the most diverse sectors can be heard."
According to Efraim Filho, the great challenge of tax reform is not to change the law, but to change the country's culture. “Our role is to lead the renewal process and keep our hands out for those who want to collaborate.”
For the deputy, Congress is open to receiving suggestions and making a really new proposal possible. According to him, parliamentarians need to accept opinions on the matter and call the responsibility to advance reform. “In the Temer government, the discussion that took place in the special tax reform commission left the legacy of a more mature debate. The diagnosis, therefore, is already ready. Now the focus must be on the approval of the materials. ”

Taxation and Legal Security Seminar discusses ways to improve the Brazilian tax system

Promoted by the Brazilian Institute of Competitive Ethics (ETCO), the event brought together some of the leading jurists to strengthen discussions and raise the inevitable proposals for the country's current moment

 

Edson Vismona (Executive President of ETCO)

In the midst of discussions on Tax reform, the Brazilian Institute of Competition Ethics (ETCO) held on the 25th, in São Paulo, the seminar Taxation and Legal Security. Bringing together some of the country's leading lawyers, the event aimed to strengthen discussions and raise the inevitable proposals for Brazil's current moment. “Taxation is today one of the major problems we face in attracting investments and generating jobs. For this reason, it is our obligation to debate the topic and suggest ways that can improve the system ”, said Edson Vismona, president of ETCO.

The seminar addressed the interpretation of the Tax Rule, the tax process, reform and taxation of the XNUMXst century. All presentations were mediated by Everardo Maciel, president of the ETCO Advisory Council and former secretary of the Federal Revenue, who reinforced the importance of the event. “This initiative brings up what I consider to be the most relevant topic for determining investments in Brazil, which is precisely legal security. It is necessary to have a clearer definition, not only for the taxpayer, but, above all, for the investor of the concepts that integrate and constitute Brazilian tax law ”, he highlighted.

From left to right: Dr. Heleno Torres (Holder of Financial Law at USP), Dr. Roberto Quiroga (Professor of Tax Law at USP) and Dr. Humberto Ávila (Holder of Tax Law at USP and UFRGS)

 

 

First speaker of the day, Heleno Torres, Full Professor of Financial Law at USP, drew attention to the importance of tax reform. “There will be no recovery of the economy just with the pension reform. It is essential to have a tax reform that comes to guarantee the predictability of taxes levied on commercial operations and that reduces the complexity of our system ”, he said.

Dr. Hamilton Dias de Souza, Master and Specialist in Tax Law at USP

Heleno's opinion was shared by Roberto Quiroga. During his lecture, the lawyer, who is a professor of Tax Law at USP and the Professional Master's Degree at Fundação Getúlio Vargas (FGV), highlighted the need for further clarification regarding the functioning of the Brazilian tax system for companies and the population. "It is essential that everyone participate in the discussions that hinder tax reform, especially with regard to the rules that may undergo some type of change."

Hamilton Dias de Souza, a master and specialist in Tax Law at USP, explained that Brazil has a chaotic and harmful tax system for the business environment, which impacts on investments in the country and job creation. The lawyer was emphatic in defending the reform, but with some reservations. “Should the reform be absolute and total? Disruptive? A reform that, instead of taking advantage of what works well, creates entirely new legal forms? I do not think so. I am in favor of a specific tax reform that takes advantage of some of the positive points that we have today ”, he said.

Development of legal certainty and XNUMXst century taxation

Humberto Ávila, national and international reference in legal security, reinforced the concept of the theme. “Legal certainty is the principle of principles. It is she who instrumentalizes the validity and effectiveness of all the others ”, he explained. For the Titular Professor of Tax Law at the University of São Paulo (USP) and at UFRGS (Federal University of Rio Grande do Sul), what happens in Brazil today is a lack of understanding by the Judiciary about its function. "In many cases, he is concerned with issues that are not fundamental," he said.

 

Dr. Gustavo Brigagão, president of the Brazilian Association of Financial Law (ABDF)

Gustavo Brigagão, president of the Brazilian Association of Financial Law (ABDF), brought the scenario of legal security and taxation in the XNUMXst century. “New technologies revolutionize the way we live and negotiate. To discuss the future, it is necessary to be aware of the mistakes of the past in relation to everything that concerns our tax system so that, thus, they will not be committed again ”, he said.

 

The seminar Taxation and Legal Security was held at the Renaissance hotel in São Paulo. The event, conceived by the Brazilian Institute of Competition Ethics (ETCO), it had the support of the Brazilian Association of Financial Law (ABDF), the Association of Federal Judges of Brazil (AJUFE) and the Center for the Study of Law Firms (CESA).