Tax reforms are increasingly needed in Brazil, where several issues still require a lot of attention, such as the release of casinos and gambling.
The regularization of gambling in Brazil has been discussed since the mandate of Michel Temer in 2018, and this year it gained a major boost when Arthur Lira and other deputies took over the agenda in the Chamber of Deputies.
The website Consultor Jurídico published a news item detailing the importance of the reforms on the national scene.
Check out the full news about renovations and casinos in Brazil
Almost daily there are reports that there is a new bill trying to improve tax legislation. (Tax Justice, Ed. Other Words, São Paulo, 2014, page 97).
Currently, certainly as a result of the confused electoral panorama that presents itself for the next year, the discussions not only reach tax reforms, but also administrative and electoral reforms.
Concurrent with discussions on taxation, administrative reform is still being discussed, with the draft constitutional amendment that is in the Chamber. The text is reported to be not good, especially in the part where it would serve certain “interest groups” who would be granted or maintained special privileges, such as automatic progression by seniority.
In this reform, the government intends, for example, to prevent civil servants from being prohibited from exercising other economic activities. In the Special Committee of the Chamber, the rapporteur Arthur Maia (DEM-BA) made some changes to the initial proposal, including to define the typical careers of the State, benefiting the security forces and defining the municipal guards as having a police nature.
On the tax issue, which is under discussion in the Senate, the rapporteur Angelo Coronel (PSD-BA) intends to increase the income tax for mining companies and even admits to legalizing games of chance.
On 01/04/2019, under the title “Tax reform and taxes in Brazil request the release of casinos”, we recorded that:
“CASSINOS LIBERATION — The regulation of so-called ‘gambling’ is being discussed today, with the release of casinos in areas of tourist interest. It is reported that the mayor of Rio, Marcello Crivella, asked the President of the Republic to license a ‘ supercasino’, of interest to Las Vegas businessman Sheldon Adelson.
The President has already stated that he was against the release of the casinos, admitting that he would see the best way out”, according to a report by the newspaper Valor Econômico. It was noted that this could stimulate the economy. MP 846/18 on “sports betting” points in this direction. It is said that religious sectors would be against the approval. It doesn’t seem to us that churches can interfere in the matter.
MONEY LAUNDERING – To prevent this crime, casinos must be required to identify by CPF (which will be our only document) the winners, sending the information “on line” to the tax authorities.
CASINO WHERE? Tourism will collect a lot of taxes. This should be at “resorts” in suitable locations. In this state we have Guarujá, Campinas, Lins and Olímpia, for example. In Bahia, Costa do Sauípe and in Rio Grande do Sul the charming city of Gramado.”
As for the administrative reform, the most important item is the limitation of vacations to 30 days, as occurs with workers in general. It is unreasonable for public servants to enjoy a 60-day vacation, as is currently the case in the magistracy.
It is never too much to remember that the constitutional principle of equality of all before the law is a fundamental clause of our Constitution.
Perhaps no one remembers law 12,325 of 15/09/2010, certainly one of the simplest in this country, containing only two articles:
“Art. 1 The National Taxpayer Respect Day is hereby established, a date of civic awareness to be celebrated annually on May 25, with the aim of mobilizing society and public authorities for awareness and reflection on the importance respect for the taxpayer.
Article 2 – The public bodies responsible for inspection and collection of taxes and contributions will promote, in all cities where they have their headquarters, awareness and clarification campaigns on the rights and duties of taxpayers. Sole paragraph. The employees of the bodies referred to in the caput will actively participate in the activities of celebration of the National Day of Respect for Taxpayers.”
This law was intended to replace the Taxpayer Defense Code, which disappeared in the drawers of Congress. It was sanctioned by President Lula and also by Minister Guido Mantega and the Union’s attorney general, Luís Inácio Lucena Adams. Apparently, a law made for nothing.
A recent demonstration of respect for the taxpayer is contained in the decision of the Supreme Court to exclude ICMS from the PIS and Cofins calculation basis.
Taxpayers can now recover the difference since March 2017, as the judgment was made with general repercussion, prevailing the vote of the rapporteur, Minister Cármen Lúcia. The amounts correspond to what was actually paid and can be recovered through court orders, whose payments are usually delayed.
The “Nos conformes” program, adopted by the São Paulo Finance Department, was created by State Complementary Law 1,320, of April 6, 2018, whose article 1 determines:
“Art.1 – This complementary law creates conditions for the continuous and growing construction of an environment of mutual trust between taxpayers and the Tax Administration, through the implementation of concrete measures inspired by the following principles: I – simplification of the state tax system; II – good faith and predictability of conduct; III – legal security due to objectivity and consistency in the application of tax legislation; IV – publicity and transparency in the disclosure of data and information; V – fair competition between economic agents. Sole paragraph – The principles established in the “caput” of this article shall guide all policies, actions and programs that may be adopted by the Tax Administration.”
This law created a “classification” of taxpayers who may have better conditions to guarantee the payment of debts under discussion in court, where their conditions are defined.
The State Attorney’s Office has an efficient body of lawyers to defend the Treasury, which does not depend on the debtor’s “classification”. By admitting that “better conditions” can be granted to taxpayers, the constitutional principle of isonomy is broken.
