Many believe that tax evasion is nothing more than an administrative violation, a misconduct, but in reality it is an offense provided for since 1990 by Law 8137. What at first seems to be little for taxpayers, has become over the years one of the biggest problems that the Brazilian government faces, considering that the lack of financial resources created by this practice leads to the emergence of social inequalities and less investment in key areas such as health, education, and security.
But what exactly is tax evasion? The answer is simple and complex at the same time. The practice would be not to pay or pay less taxes than due, distorting or completely concealing an already existing tax obligation. The way this is carried out can occur in different ways: through the concealment of income, manipulation of financial information and so many other routine unlawful practices.
Law 8137, dated December 27, 1990, in its Articles 1 and 2, defines the suppression or reduction of tax, social contribution, and any ancillary obligation as an offense against the tax order practiced by individuals, including 10 listed conducts:
I – omission of information, or provision of a false representation to the tax authorities;
II – fraud to tax inspection, through the insertion of inaccurate elements, or omission of operation of any nature, in a document or book required by tax law;
III – forgery or modification of a tax bill, invoice, duplicate invoice, sales invoice or any other document pertaining to taxable transactions;
IV – preparation, distribution, supply, issuance or use of a document that one knows or should know to be false or inaccurate;
V – denial or failure to provide, when mandatory, an invoice or equivalent document, relating to the selling of goods or the provision of service, effectively performed, or provide it in violation of the law.
On the other hand, the conducts that constitute an offense of the same nature, but have considerably smaller penalties, are:
VI – to make a false representation or omit information on income, assets or facts, or use other fraudulent means to avoid, wholly or in part, paying taxes;
VII – to fail to pay, within the legal deadline, tax or social contribution to the public treasury, deducted from or charged to the actual taxpayers;
VIII – to require, pay or receive, for themselves or for the beneficiary taxpayer, any percentage of the portion discountable or discounted from a tax or contribution on account of a tax incentive;
IX – fail to invest, or invest in violation of the established rule, any tax incentive or tax installments released by development entities or agencies;
X – use or disclosure of data processing programs that enable taxpayers to obtain accounting data other than that provided to the Tax Authority by law.
It is undeniable that this behavior of many taxpayers is actually a response against the country’s tax system, since Brazil has one of the heaviest tax burdens in the world. However, crime never pays. Recent studies have shown that if there were no tax evasion in the country, the weight of the tax burden could be reduced by almost 30%, maintaining the same level of revenue. That is, the government, knowing that tax evasion exists, imposes increasing rates, so that those who pay correctly pay both for themselves and for those who evade.
Therefore, tax evasion is much more than an offense against the tax system, it is also an offense that endangers citizenship and damages the socioeconomic structure of the country.
Lastly, it is important to remember that in addition to violating the law and civic duty, the penalties for those who evade are harsh. The Federal Revenue Service has an inspection mechanism to spot lost payments. When this happens, you will face legal charges such as penalties of up to 20% of the amount owed, as well as default interest on the amount owed. In addition, as provided by law, sentences may be imposed, in the form of imprisonment for periods ranging from 6 months to 5 years.
Available in: https://www.metropoles.com/brasil/que-tal-usar-o-feriado-para-declarar-o-imposto-de-renda-veja-dicas
Autor: Flávia Sant'Anna Benites • email: flavia@ernestoborges.com.br • Tel.: +55 67 99984 1406
