BRAZIL Law and Practice Contributed by: Paulo Honório de Castro Júnior, Bruno Marques Feitosa and Urick Soares, William Freire Advogados
As this is an emerging topic, there have been no official statements from tax authorities regard - ing the collateral effects of compensating adjust - ments. However, when assessing whether to implement such adjustments, potential impacts on customs and consumption taxes should be taken into account. 5.2 Secondary Transfer Pricing Adjustments Brazil does not have rules regarding secondary adjustments. Brazilian legislation only provides for the pos - sibility of the tax authorities making a primary adjustment, whose sole consequence described in the applicable rules is the increase of the Income Tax assessment basis. In recent decades, Brazil has signed a series of treaties and joined mutual co-operation pro - grammes for sharing tax information. Among the most relevant expedients, the authors list the fol - lowing. • Brazil has been a member of the OECD Global Forum on Transparency and Informa - tion Exchange for Tax Purposes since 2010. • Double taxation agreements, as a rule, include devices that allow the exchange of information between contracting states. Cur - rently, Brazil has agreements in force with the following jurisdictions. (a) South Africa; 6. Cross-Border Information Sharing 6.1 Sharing Taxpayer Information
(e) Belgium; (f) Canada;
(g) Chile; (h) China; (i) South Korea; (j) Denmark; (k) United Arab Emirates; (l) Ecuador; (m) Slovakia; (n) Spain; (o) Philippines;
(p) Finland; (q) France; (r) Hungary;
(s) India; (t) Israel; (u) Italy; (v) Japan; (w) Luxembourg;
(x) Mexico; (y) Norway; (z) Netherlands; (aa) Peru; (ab) Portugal; (ac) Czech Republic; (ad) Russia; (ae) Singapore; (af) Sweden; (ag) Switzerland; (ah) Trinidad and Tobago; (ai) Türkiye; (aj) Uruguay; (ak) Ukraine; and (al) Venezuela. • Tax Information Exchange Agreement – TIEA, developed by the OECD Global Forum in 2002 and deals with the exchange of tax information. • Convention on Mutual Administrative Assis - tance in Tax Matters, signed by the mem - ber states of the Council of Europe and the
(b) Germany; (c) Argentina; (d) Austria;
96
CHAMBERS.COM
Powered by FlippingBook