Brazil raises over $15.8 billion in repatriated funds

Brazil's Revenue Service raised $15.87 billion in taxes and fines through the declaration of assets abroad, in a program outlined by the so-called Repatriation Law. A report was released Tuesday (Nov. 1) by Federal Revenue Secretary Jorge Rachid. The amounts declared add up to $53 billion, the secretary said.

The number of natural persons who adhered to the plan reached 35.011 thousand, compared to 103 legal entities. “The program was successful. The teams at the Service worked to answer the questions posed by taxpayers in a number of seminars,” he said. In the US, he instanced, a similar initiative collected some $8 billion in 2009, against Brazil's $15 billion.

For assets surpassing $100 thousand, the Service postponed the deadline for the response from foreign financial institutions to Brazilian banks to December 31.

Suspect taxpayers will only be cut out of the program after questioning or if tax authorities deem the clarifications provided insufficient. According to the Service, the plan aims to keep its adherents safe. Some 49% of the taxes collected will be shared among states and municipalities, Rachid added.

The special tax and exchange declaration program was brought into force for those resident or domiciled in Brazil on December 31, 2014 holding assets, goods, or rights prior to December 31, 2014, even if they did not own a fund balance or a certificate of ownership of good and rights on that day.

Translated by Fabrício Ferreira