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.

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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 »

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

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.