Brazil: Special Procedures for Tax refunds on exports
Description
On June 16th 2010 the Ministry of Finance established trough the “Portaria nº 348” special procedures for the refund of taxes on exports related to PIS/Pasep, Cofins and IPI credits. On August 3rd the Federal Revenue of Brazil published “Instrução Normativa nº 1060” containing additional rules for the implementation of the special refund procedure.
The refund procedures apply only to credits accounted for from April 1st 2010, subject to some conditions, for instance: exports must represent at least 30% of the companies’ revenues during the last 2 years; companies must have exported in the last 4 years; and, companies must be subject to the availability of funds from the part of the Central Government.
The regulation implemented by the Federal Revenue of Brazil established additional rules to restrain the access to the tax refunds, as for instance the limits which apply to the IPI refund – credits originating from the acquisition of raw materials, intermediate goods and packing materials destined to the production of certain specified goods are not entitled to the refund.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | No |
| Is there any evidence that alternatives to the proposed measure were considered? | No |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | No |
| Was such evidence identified? | No |
| Is such evidence publicly available? | No |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | No |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | No |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | No |
| Did the government state its intention to review the measure within one year of implementation? | No |
Date Discovered: 17/06/2010
Implemented: Yes
Date of inception: 16 Jun 2010
GTA Evaluation: Red
Source:
“Portaria nº 348” of the Ministry of Finance and “Instrução Normativa nº 1060” of the Federal Revenue of Brazil –http://www.fazenda.gov.br/portugues/legislacao/portarias/2010/portaria348.pdf
http://www.fazenda.gov.br/portugues/releases/2010/agosto/r040810.asp
Government Response: The government issued the measure
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