Taxation system in Brazil can affect the longevity of small and medium companies

Brazilian Tax System is still a barrier to the growth of the country. The fact is that election campaigns begin in the same way: the speech of necessity of tax reform. UN data shows that low-income people pay the equivalent of 46% of their income in indirect taxes, while the favored layer of Brazilian society passes 16%. "With this, it is obvious the rich get richer and the poor, poorer. So our country, which has improved in many ways, ends up staying with other side issues that could already have been resolved, "said the lawyer Cecilia Galician. Besides its higher taxes for the less financial favored ones, another emblematic aspect in Brazil is the number of rules created for the tax system. Since the duration of the Federal Constitution in 1988, were issued more than 250,000 rules for tax matters, with more than 60 taxes and VAT, by the way, it has 27 different laws. "Apart from these, we have a hundred accessories obligations, and the cost to meet these obligations is around 2% of revenues. Excessive taxes can affect the longevity of small and medium entrepreneurs, "says the lawyer. It further states that this example system is a barrier to the growth of the country. "Other countries, like Germany, has a tax higher than Brazil, however, the allocation of resources affects the needs of society such as schools, hospitals, road quality, among others. Around here, we do have a high tax burden, and we still have to bear the cost of school, health, among others. The cost is too high for a country that still receives most low wages. " At time of declaration of Income Tax IRS, Cecilia warns that the taxpayer should seek information or expert in taxes in time to prepare a declaration to the tax authorities, because many people fall into the "Fiscal Demands" due to its complexity. "The IRS system is one of the most modern in the world. The technology makes cross-checking is done quickly and with it, citizens can have problems, "she warns. Cecilia believes it is necessary that the business trade associations and professional groups linked to economic activities may act together to help push the representatives of legislative power, to reduce the rate of production of laws and other normative acts, subjecting them to always analysis of its necessity and convenience, in order to identify the bureaucratic requirements that can be eliminated, subject to the controls required by the public sector. "Such measures should aim to stop the ongoing lawmaking, initiate a process of simplification and consolidation of legislation, but more than that, an effective recovery by better management of public resources, time, what is critical is not the collection but what the Govern provides back to taxpayers with the product of its collection, which is called tax fairness. " Source:Factor. Translation:EGE