Originally published in the August 28 edition of World Tax Daily (Copyrights Tax Analysts)
Twelve high-ranking Brazilian Federal Revenue Department (FRD) officials have resigned in response to the July dismissal of FRD Chief Commissioner Lina Maria Vieira. Observers fear the resignations could affect the FRD’s operations and investigations.
The officials signed a collective resignation letter, dated August 24 and addressed to new Chief Commissioner Otacílio Cartaxo, noting their disapproval of the way Vieira was dismissed. The letter also states their dissatisfaction with alleged attempts of political interference in the FRD’s administration. The FRD should be technically autonomous and free from political and economic interference and pressures, the officials said.
The officials include 6 of the 10 regional superintendents, including São Paulo’s and Rio de Janeiro’s, as well as the general coordinators of taxation and audit. Their resignation came after two close aides of former Chief Commissioner Vieira, Iraneth Weiler and Alberto Amadei, were exonerated on August 24.
Despite statements from Finance Minister Guido Mantega that the FRD is not experiencing an unprecedented crisis, the situation escalated on August 26 when UNAFISCO (the FRD tax auditors’ union) announced that 30 high-ranking regional officials in the states of São Paulo and Rio Grande do Sul had also resigned from key positions.
UNAFISCO estimates that it will take three months to replace all the FRD officials and for the delicate situation to return to normal. Appointing new high-ranking officials is a time-consuming process that often requires the formation of a special team.
It is uncertain whether the situation has settled or will escalate further with more dismissals and resignations. So far basic FRD activities such as tax auditing and taxpayer services at local FRD offices have not been compromised.
David Roberto R. Soares da Silva