According to Brazilian weekly news magazine Veja the imposition of a retroactive taxation on online operators is gaining traction amongst lawmakers. The taxes could provide the government with R$12.6 billion amid the need for fiscal adjustments.
According to Veja one of the ideas under consideration is to use the funds to compensate victims of INSS (National Institute of Social Security) fraud, as advocated by Senator Hiran Gonçalves.
The Federal Revenue Service already plans to implement a compliance program for online gambling operators this year. An interministerial working group has been formed and is expected to present a model in September. Some models are already being discussed in the Ministry of Finance according to Veja. One of these models would involve paying 50% of the owed amount upfront, with the remaining balance to be paid in instalments over time.
The idea began to first gain momentum after the head of the Federal Revenue Robinson Barreirinhas appeared before the Parliamentary Inquiry Commission (CPI) on betting in March of this year. He stated that betting companies that operated in Brazil before regulation should pay retroactive taxes. Soraya Thronicke the head of the CPI inquired about the Secretary’s opinion on a possible retroactive tax on betting due to activities prior to regulation between 2018 and 2023. While Barreirinhas agreed with retroactive taxation he admitted that there may be “operational difficulties.”
“If there was a material presence here in Brazil and there were profits, they must pay Income Tax; if there was revenue, they must pay (federal tax) PIS-Cofins,” he said. In August the issue was addressed by a working group that included the Federal Revenue (RF) and the Secretary of Prizes and Bets (SPA) from the Ministry of Finance.
The post Momentum builds to impose retroactive tax on operators in Brazil appeared first on G3 Newswire.
According to Brazilian weekly news magazine Veja the imposition of a retroactive taxation on online operators is gaining traction amongst lawmakers. The taxes could provide the government with R$12.6 billion amid the need for fiscal adjustments. According to Veja one of the ideas under consideration is to use the funds to compensate victims of INSS…
The post Momentum builds to impose retroactive tax on operators in Brazil appeared first on G3 Newswire.