It is important to pay attention to the movements of the market, to the voting of projects by the executive and legislative branches, and to the judiciary.
One of the barriers that most keep Brazil from competitiveness and expansion of industries, according to a survey done by FIESP/CIESP, in the year 2019, is the tax issue. And it is not without reason. There are countless regulations, excessive legislation, the lack of timing between the payment of taxes and the receipt of sales from companies, among others. And this, without a doubt, restricts the investment of foreign companies and even the national ones, which are already more used to the national reality, experience difficulties in expanding their business.
Added to this are the risks that companies and their representatives face due to the misapplication of legislation, which can lead to criminalization, excessive fines and lawsuits. Our office recently made a survey of the main tax impacts on corporate business and it is really surprising, even to the most experienced professionals, the number of issues that are being discussed at the Federal Supreme Court.
The issues include the exclusion of ICMS from the calculation basis of PIS and COFINS, which may also extend to Tax on Services (ISS). And the issues are extensive, because they affect, for example, other sectors of the economy. In other words, they circulate through the productive, service, and trade areas.
There are also other issues such as the constitutionality of the S System and themes such as the tax regime of the Corporate Income Tax, Social Contribution, PIS, COFINS on the repetition of undue payments/offsets, with regard to the SELIC rate, court measures and accounting recognition of credits. These are just some of the examples of the actions that haunt companies in the country and that discussions are in the Judiciary sphere.
To understand and serve a diversity of businesses, I see the need to have a structured equation that brings good numbers for the company, allied to social and fiscal responsibility, supported by laws and resolutions. Sometimes, we are faced with a tax planning that is not up to date, which causes countless financial losses, reputation losses, and even legal implications. One path may be the implementation of Tax Compliance programs and its Tax Indicators, aiming to achieve process efficiency and the mitigation of financial and asset risks, generating a sustainable growth of the companies even by being in accordance with the Compliance rules.
Therefore, I take the liberty of asking: when did you, investor or entrepreneur, revisit the tax planning of your business? Did your advisor make an analysis considering the legal and financial impacts? Was the team multidisciplinary and focused on your business? Are the updates periodic? I ask this because there are many processes occurring simultaneously and this can mean savings in resources, better management, and improved competitiveness.
Time is a key factor. A previously filed lawsuit is a sign of preparation and possible positive results. Many resolutions and judgments give rights to those who have spoken previously. In other words, those who were «waiting» for the decisions to follow can be left out of the benefits. Therefore, it is important to pay attention to the movements of the market, to the voting of projects by the executive and legislative branches, and to the judiciary.