U.S. Desk News

Brazil is a continental country organized in the form a Federation where the Union, the States and Cities have the constitutional power to tax. In federations subject to non-centralized structures, as it is the case of Brazil, tax collection is specially associated with political leverage. The complexity derives from the various key actors (federal, state and city lawmakers, governors, mayors) with specific agendas backed by the apportionment of tax revenues.

With the benefit of hindsight in a post-financial crisis world, the G-20 group concluded that enhancing transparency for tax administrations was key for tackling base erosion and profit shifting (BEPS). G-20 commissioned the OECD to analyze the problem in 2009. In 2013, the OECD announced the action plans on BEPS intended to modernize the global tax system at a moment of transition between industrial and digital economies and counterpoint tax avoidance strategies that take advantage of gaps of the legislation.