Originally published in the September 30 edition of World Tax Daily (Copyrights Tax Analysts)
Brazilian Federal Revenue Department (FRD) Chief Commissioner Otacilio Cartaxo is preparing to increase tax revenue by strengthening tax enforcement and compliance efforts.
The focus will be on large taxpayers, including multinationals, as the FRD plans to open two new offices specializing in large taxpayers in São Paulo and Rio de Janeiro. It also plans to strengthen its enforcement efforts targeting financial institutions. The changes will likely be implemented soon because Cartaxo believes tax revenue, which has been dropping since the financial crisis began in October 2008, will begin rising in the last quarter of 2009.
Finance Minister Guido Mantega believes the recently improving economy should have been reflected in an increase of federal tax revenue. Finance Ministry officials believe the reduction in tax revenue is partly a result of poor tax enforcement and audit efforts under the administration of former FRD Chief Commissioner Lina Vieira.
David Roberto R. Soares da Silva