When a company fails to meet its tax obligations, it gains an undue advantage over the competitor who pays taxes correctly. In addition, tax evasion compromises the provision of public services by the State and usually leads to an increase in the tax burden to compensate for the loss in revenue.
The fight against tax evasion is one of ETCO's central flags. Since 2003, we have participated in several projects to promote tax ethics, such as the creation of the Electronic Invoice, the introduction of beverage and cigarette production control systems and the institution of Article 146a of the Federal Constitution.
Approved by a Constitutional Amendment, this legal instrument authorized the creation of differentiated tax collection systems for taxpayers that adopt tax practices unfair to competition. Its regulation is now pending in the Federal Senate and will represent an important step forward in the fight against regular tax debtors, an unfair practice that is very present in the country. It consists in declaring but not collecting taxes, thus avoiding the stricter penalties intended tax evaders, and profit from the illicit tax advantage.
ETCO also advocates measures to simplify the country's chaotic tax system, which creates legal uncertainty and opens loopholes for tax evasion and unfair taxation competition.
