Originally published in the August 6 edition of World Tax Daily (Copyrights Tax Analysts – www.taxanalysts.com)
Brazil’s Finance Ministry on July 31 announced the resignation of Federal Revenue Department (FRD) Chief Commissioner Jorge Rachid.
The government appointed as his replacement Lina Maria Vieira, former FRD regional commissioner for the Fourth Region with jurisdiction over the northeastern states of Alagoas, Rio Grandedo Norte, Paraíba, and Pernambuco.
There was no official reason given for Rachid’s departure. The FRD had scheduled an August 1 press conference with Vieira, but it was canceled at the last minute.
In an August 4 interview with Folha de São Paulo, one of Brazil’s largest newspapers, Vieira said she favors new personal income tax brackets rather than the existing two brackets (at 15 percent and 27.5 percent rates). She argued that in developed countries, the tax rates are higher than 27.5 percent.
She said she also supports the creation of a new bank transactions tax (similar to the expired 0.38 percent CPMF) that would allow tax authorities to monitor taxpayers’ financial information to fight tax evasion and tax crimes.
David Roberto R. Soares da Silva