Archive for the ‘Repatriation’ Category

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.