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 banners. Since 2003, we have participated in several projects to promote tax ethics, such as the creation of the Electronic Invoice, the introduction of control systems for the production of beverages and cigarettes and the institution of the 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.
Tax legal certainty
The Brazilian tax system is extremely complex and insecure. And the rules change all the time. From 1988, when the Federal Constitution was enacted, until 2018, 16 Constitutional Amendments and more than 390 thousand tax rules were issued in the country. The situation generates enormous legal uncertainty and is the source of a problem that is growing… Continue reading Tax legal security
Defense of the legal market
Good companies invest in research, development and quality to offer increasingly better products and services. Often, however, they end up having to dispute the market with products that are the result of smuggling, piracy, counterfeiting and other illicit acts. These practices do a lot of damage. Illegal products do not pass the appropriate quality and safety controls, putting in… Continue reading Defense of the legal market