Federal Revenue – New rules for monitoring large taxpayers


Federal Revenue - New rules for monitoring large taxpayers

On Dec-11-2020, the Federal Revenue of Brazil (RFB), through the Ordinance 4888/2020 , published new rules for monitoring large taxpayers.

According to the RFB, the ordinance was prepared “to foresee, as an activity understood in the monitoring of the largest taxpayers, the checking compliance with the main and accessory tax obligations and the monitoring of the effective change of behavior after applying the compliance”.

The monitoring of the largest taxpayers consists of the analysis of their economic-tax behavior to promote tax compliance, through:

    a) the monitoring of taxpayers’ revenues, income and property;

    b) the monitoring of the payment of taxes administered by the RFB;

    c) the analysis of economic groups and sectors; and

    d) the management for priority treatment of non -compliance in order to prevent the formation of tax liabilities.

Source of information

The information used in the monitoring activity of the largest taxpayers will be internally and externally obtained from the RFB.

The external information is surveyed through:

    a) public data and information source;

    b) telephone contact of the server responsible for monitoring, previously and formally communicated to the taxpayer by the RFB;

    c) contact by electronic means, through the Virtual Service Center (e-CAC), available online;

    d) face-to-face or virtual compliance meeting, priory scheduled by e-CAC; or

    e) diligence procedure, with issuance of its Distribution Term of Diligence Tax Procedure (Termo de Distribuição do Procedimento Fiscal de Diligência - “TDPF-D”).

Choice of taxpayers to be monitored

I - Legal entities

For establishing legal entities subject to the monitoring of the largest taxpayers, the following criteria will be adopted:

    a) reported gross revenue ;

    b) reported debts;

    c) mass salary;

    d) interest in the collection of taxes administered by the RFB; and

    e) interest in foreign trade.

Annually, the RFB will communicate the legal entity subject to monitoring by the last day of January of the respective calendar year.

II – Individuals

The criteria to stablish the individuals subject to monitoring are:

    a) total reported income;

    b) goods and rights;

    c) variable income operations;

    d) single proprietorship investment funds; and

    e) interest in legal entities subject to differentiated monitoring.

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