Trump, national security and steel making

April 25, 2017

The Constitution of 1988 proposes the construction of a civilized society. Its supreme values are: 1) the broadest individual freedom; 2) the systematic pursuit of equality of opportunities; and 3) constructing an efficient coordination of the economic activity of citizens compatible with them. The three conditions are not easily accommodated. The long history of mankind suggests that so far the only available form of coordination capable of hosting freedom and equality is through “markets.” For its good operation they demand the private property, which reduces the equality and puts at risk the democratic legitimacy. Read the rest of this entry »

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Government prepares National Plan for Internet of Things

February 23, 2017

Gilberto Kassab, minister of Science, Technology, Innovation and Communications, says the so-called “internet of things” could generate R$200 billion for the Brazilian economy by 2025 and revealed the government is working on a plan to encourage the industry. On Thursday, while heading the Brazilian delegation to Barcelona’s Mobile World Congress, the minister said the plan might include adjustments in industrial policy, telecom regulation, project and innovation financing, and labor training. Officials even study directing tax breaks to suppliers and manufacturers who join the production chain, but any changes would require reforming the Law of Informatics.

A GOP Regulatory Game Changer

January 27, 2017

Legal experts say that Congress can overrule Obama regulations going back to 2009.

bn-rv070_pw0127_jv_20170126181434Todd Gaziano on Wednesday stepped into a meeting of free-market attorneys, think tankers and Republican congressional staff to unveil a big idea. By the time he stepped out, he had reset Washington’s regulatory battle lines. Read the rest of this entry »

Federal government may lose R$500bn in cases linked to tax issues

January 2, 2017

Nine tax issues discussed in lawsuits in both the Federal Supreme Court (STF) and the Superior Court of Justice could together amount to R$500 billion in losses for the federal government if it is defeated in all of them. The case with the greatest impact on public coffers — estimated at R$250 billion — will define if sales tax ICMS is included in the calculation basis of social contributions PIS and Cofins. The case has not yet begun to be tried in the STF. Other pending issues are the definition of an input to obtain PIS and Cofins credits, valued at R$50 billion, and the possibility of collecting PIS and Cofins on revenues from financial institutions, which may reach almost R$136 billion. There is also expectation that the courts will review the right of a credit related to the Tax on Industrialized Products (IPI) in the acquisition of exempt inputs from the Manaus Free Trade Zone.

Temer allies try to invalidate “widely publicized” Odebrecht testimony

December 11, 2016

Allies of President Michel Temer, mentioned along with him in the plea bargain of former institutional relations director of Odebrecht, Cláudio Melo Filho, advocate that his testimony should be disregarded because its content was widely publicized in the press. This is one of the strategies discussed by Mr. Temer’s inner circle at meetings in Brasília and São Paulo after the release of the document, which involves the president of the Republic, the speakers of the Chamber of Deputies and the Senate, as well as dozens of parliamentarians from the allied base and opposition in the corruption scheme confessed by the construction company. “This plea bargain will have to be annulled, this is the legal norm,” said a member of the Brazilian Democratic Movement Party, or PMDB, who was cited in the accusations.

Brasília considers creation of “recovery law” to aid indebted states

November 30, 2016

The federal government is studying the creation of a “recovery law” for states in financial difficulty. In general, the new law would allow the renegotiation of debts, disciplining the relation with creditors and public officials. Sources heard by Valor emphasize that the measure would have to be approved by Congress and could hardly be applied in the short term. According to one source, this mechanism is already applied in the US, but the conditions for its activation are quite strict. “There, the administrator loses practically all the capacity to manage the state.”

Brasília hardens stance with states over repatriation funds

November 28, 2016

The government rejects sharing the money obtained from fines on undeclared assets abroad with the states unless the states commit to a fiscal adjustment effort, a high-ranking source told Valor. Brasília had agreed to channel R$5 billion from the R$45 billion collected to the states in exchange for a national pact to improve the health of public accounts. Officials argue that current legislation doesn’t force the federal government to share the fines with states and without concessions from them it is even willing to let the Federal Supreme Court resolve the issue.

Federal Revenue to publish rules on repatriation of funds this month

March 7, 2016

The normative instruction draft of the Secretariat of Federal Revenue that will regulate Law No. 13,254, establishing the conditions for the legalization of funds sent illegally abroad, has received 284 suggestions for changes or requests for information during the public consultation period ended on Thursday. The suggestions can be divided into three groups: instruments considered illegal for violating the Law 13,254; rules that would be inapplicable due to operational incompatibility; and articles that can lead taxpayers to differing interpretations, causing legal uncertainty. The suggestions include one from teacher Eduardo Salusse, of FGV\’s Law School, in São Paulo. He advocated that the payment of tax and penalty could be done with funds from abroad. Today, when capital enters the country, first the taxpayer must pay the tax and the fine, and then report it to the Federal Revenue and the Central Bank and, finally, to the financial institution in order to convert the currency and release the money in Brazil. According to the Federal Revenue, the normative instruction will be published this month.

valor.com.br

Rousseff bets on mosquito hunt to regain popularity

February 11, 2016
Dilma Rousseff

Dilma Rousseff

President Dilma Rousseff bets on the fight against the Zika virus and the microcephaly epidemic as a vaccine to contain the progress of Operation Car Wash investigations on former president Luiz Inácio Lula da Silva. In the opinion of Rousseff aides, the affected image of her predecessor hits the president directly and makes her more vulnerable to the impeachment that although asleep, it has not been buried. She will command the mega-operation scheduled for next Saturday, when 220,000 military officials will take the streets to battle the Aedes aegypti mosquito. Read the rest of this entry »

Repatriation Law raises concerns, but encourages asset managers

January 18, 2016
Fernandes, Figueiredo, Françoso Petros Advogados

Edison Fernandes

The so-called Repatriation Law, which President Dilma Rousseff signed into law Thursday, was received with some concern by law firms and with enthusiasm by wealth-advisory services of financial-service providers. The new act, still dependent on regulation by the Secretariat of Federal Revenue, allows taxpayers to regularize unreported funds they hold abroad by paying a 15% tax and a 15% fine. Read the rest of this entry »