Brazilian government plans to bring ministries together to reduce tax risks from court rulings
Joint inter-ministerial monitoring aims to avoid negative impacts on financial planning and the state treasury as a result of decisions unfavourable for the country
The government of President Luiz Inacio Lula da Silva is implementing a strategy aimed at continuously monitoring judicial fiscal risks in order to avoid negative impacts on the public treasury as a result of decisions unfavourable to Brazil, as reported by Brasil247, a partner of TV BRICS.
The idea is to bring together various parts of the executive branch, including ministries, to monitor actions to overcome negative tax planning effects.
“In the future, the plan is to determine the time at which a final and non-appealable decision (when resources are no longer available) materialises in public accounts, depending on the type of impact: preventive, permanent spending increases or revenue reductions. This will help to more accurately determine the amounts to be factored into the budget for the coming years,” the report emphasises.
The Tax Risk Prevention Strategy began work in January, when President Lula’s decree created the Tax Risk Judicial Monitoring Council. Since then, the council, formed by Jorge Messias (Brazil’s Attorney General), Ministers Fernando Haddad (Finance) and Simone Tebet (Planning and Budget), has met three times (twice online) and developed a plan with ten measures to be implemented by next June.
Also, according to the report, “PLDO (Budget Guidelines Bill) 2024, the government reported the existence of actions with a “probable risk” of R$1 trillion, which means a high probability of loss. There are even more significant amounts in the “possible risk” classification – in the more distant future.