Top Treasury Lawyer Expects Brazil to Exceed Revenue Outlook for Tax Disputes
Brazil’s Government Relies on Strong Negotiations to Erase Budget Deficit
Nearly 40% of the additional revenue required to eliminate Brazil’s budget deficit next year hinges on the Brazilian Treasury’s top lawyer utilizing stronger negotiation tactics to resolve tax disputes. Anelize Almeida, the Treasury’s attorney general, is optimistic that they will be able to collect even more revenue than anticipated.
A Rule Change Boosts Confidence in Winning Tax Trials
Recent rule changes for tax trials have provided a significant advantage to the government. In case of a split vote on the federal tax appeal board CARF, where companies and individuals dispute their tax obligations, the government now automatically wins. This change has boosted the confidence of Anelize Almeida and her team.
Finance Minister’s Revenue Projections Met with Skepticism
Many private economists are skeptical of Finance Minister Fernando Haddad’s revenue projections and argue that spending should be reduced to ensure the government adheres to its ambitious new fiscal rules. However, Almeida insists that the outlook for more revenue from tax disputes is conservative. In addition to the revenue outlined in the 2024 budget, the government is focusing on the 100 largest and most promising tax cases in the courts, with a staggering 180 billion reais at stake.
Potential Negotiations with State-Run Oil Firm
Anelize Almeida highlights that state-run oil firm Petrobras, involved in four cases totaling around 40 billion reais, has shown a willingness to negotiate a settlement. This demonstrates a positive sign for the potential resolution of these disputes.
Prioritizing Cases with Deposits as Collateral
The Treasury’s attorney general is prioritizing 100 judicial cases that involve companies that have made a deposit as collateral in their disputes. This increases the likelihood of actual payment and resolution.
Large Number of Cases at CARF
Anelize Almeida reveals that the revenue forecasts only reflect a fraction of what is on the docket at CARF. One subset of 1,500 cases alone represents around 800 billion reais. The Treasury’s attorney general emphasizes that it is highly feasible and reasonable for CARF to adjudicate 1,500 cases in a year.
In conclusion, Brazil’s government is relying on the expertise and negotiation skills of the Treasury’s attorney general to resolve tax disputes and generate additional revenue. With the recent rule change and a focus on the largest and most promising cases, there is optimism that Brazil will exceed its revenue outlook for tax disputes.
