Brazil adopts single standard for fiscal risk

January 14, 2016

The federal government started to use new parameters, similar to private-sector ones, to classify legal liabilities as “fiscal risks” that could cause unlikely, possible and probable losses – the Treasury has to set aside reserves to cover the last ones. Officials say the change aims to create transparent criteria for lawsuits against the federal government and its bodies. Before, every sector classified the risk according to its own interpretation. Last year’s budget had 49 issues that could result in R$838.1 billion in liabilities, while this year the number fell to 12 with R$662.9 billion in potential liabilities.

valor.com.br

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Eleven states raise inheritance and donation taxes

December 23, 2015
Gustavo Querotti e Silva

Gustavo Querotti e Silva

To raise revenues, at least 11 states changed rates on the Inheritance and Donation Tax (ITCMD). Starting next year, the rates become progressive in most states until the legislated cap of 8%. The rate usually hovers around a fixed 4% today.

The new rates go into effect on January 1st in the Federal District and the states of Goiás, Ceará, Maranhão, Paraíba, Pernambuco, Rio Grande do Sul, Rio Grande do Norte, Sergipe and Tocantins. Only three of them already apply progressive rates. Read the rest of this entry »

Rousseff wins first battle against impeachment

December 17, 2015

The Supreme Federal Court (STF) ended Thursday — with a positive outcome for the government — the review on the rules for the opening of potential impeachment proceedings against President Dilma Rousseff.

As one of the main points of the ruling, the majority of ministers invalidated, for two reasons, the special committee of the Chamber of Deputies formed to analyze the impeachment request: they did not accept the alternative group created and approved by the opposition, with the support of government dissidents, and also because the election of its members was made in a closed vote. The members of a new committee must be appointed by party leaders and chosen in an open vote. Read the rest of this entry »

Bill changing rules for land acquisition by foreigners still on hold

December 14, 2015

In the face of growing resistance within the government about the issue, a Congress vote to authorize the purchase of land to companies with majority foreign capital, particularly multinationals, is increasingly distant from an outcome and should happen only next year.

Oppostion starts to coordinate resignation of lower House speaker

November 23, 2015

The maneuver of Chamber of Deputies speaker Eduardo Cunha (Brazilian Democratic Movement Party, PMDB, of Rio de Janeiro), who prevented last week that the Ethics Council evaluated an opinion requesting his ousting, was a mistake that should precipitate his resignation. The analysis is of an opposition leader who believes that Mr. Cunha has lost political support in Congress with his decision to suspend the council session, also saying that the speaker has less and less support among deputies. The resignation of the PMDB member would be a less traumatic alternative to a potential ousting, according to this parliamentarian. The opposition is about to start working behind the scenes with Mr. Cunha’s allies to persuade him to step down still this year. The resignation is seen by the opposition as a first step to carry out the impeachment of President Dilma Rousseff.

valor.com.br    23nov15
Waldemar Jezler

Property developers to continue facing crisis in 2016

November 20, 2015

Real-estate developers are going through their worst period since a wave of IPOs in 2007. Demand has contracted, credit funded by savings accounts has become more restrictive, job and income levels have fallen, consumer confidence is low and developers have too big structures for the current market. “The sector needs a new equilibrium,” an analyst says.

Read the rest of this entry »

Eduardo Cunha maneuvers to avoid explusion from Chamber of Deputies

November 17, 2015

The presentation of a brief on admissibility of representation against Chamber of Deputies speaker Eduardo Cunha (PMDB Rio de Janeiro) before his defense could open a procedural front that could hamper the expulsion of the congressmen by the chamber’s ethics committee. The allegation of a denial of the right to defense could place the matter before the chamber’s judiciary committee (CCJ), a body where Mr. Cunha is represented by a majority and which is chaired by one of his closest allies, Arthur Lira (PP-AL), who has been accused in Operation Car Wash investigations as an intermediator of bribery. The possibility of this legal maneuver has already been mentioned by Mr. Cunha’s attorney, Marcelo Nobre. “The role of the CCJ is to re-establish due process of law,” said Mr. Nobre. Mr. Cunha has been under investigation for alleged receipt of up to R$5 million in bribes.

valor.com.br 11/17/15

Waldemar Jezler

 

Corruption investigations draw closer to Lula

November 3, 2015

Federal Public Ministry prosecutors and the Federal Police are intensifying investigations of former president Luiz Inácio Lula da Silva and his circle in at least six criminal fronts. A Criminal Investigative Procedure (PIC) opened in Brasília is looking into alleged influence peddling in favor of construction company Odebrecht. Operation Zelotes, in turn, investigates payments received by Mr. Lula\’s son, Luís Claudio, and the suspicion that former Chief of Staff Gilberto Carvalho acted on influence peddling and corruption with companies in the automotive sector. In Operation Car Wash, the investigations try to find out if a contract for drillship Vitoria 10000, contracted by Petrobras, would have been delivered to Schahin without a bidding process thanks to the mediation of agribusiness investor José Carlos Bumlai, a friend of Mr. Lula. In return, the Schahin bank would have settled a R$60 million debt of Mr. Lula\’s campaign in 2006. Operation Car Wash also investigates company payments to LILS, established by the former president for his lectures, and to the Lula Institute.

valor.com 11/3/15

Waldemar Jezler on Google+

 

Brazilian Supreme Court freezes assets of Chamber Speaker

October 23, 2015

The Federal Supreme Court (STF) ordered the remittance to Brazil of 2.5 million francs owned by Chamber of Deputies speaker Eduardo Cunha in a Swiss account. Minister Teori Zavascki ordered the funds to be deposited in court, accepting a request from the Attorney-General of the Republic. Mr. Cunha, his wife and daughter are under investigation after allegations that he received bribes related to Petrobras contracts. The STF also denied the speaker’s request for trial secrecy. The Attorney-General is considering measures to request the removal of the controversial speaker, elected at the beginning of the year and who has repeatedly challenged the government’s plans in Congress

valor.com.br 10/23/15

Court Ruling Threatens to Hamper Brazilian Judge Sergio Moro’s Anticorruption Success

October 18, 2015
Federal Judge Sergio Moro spoke in São Paulo, Brazil, in late September.

RIO DE JANEIRO—A single federal judge has overseen the adjudication of Brazil’s vast corruption scandal involving state-run oil company Petróleo Brasileiro SA, issuing a string of warrants and multiyear prison sentences against some of the country’s most powerful executives. Read the rest of this entry »