Brazilian tax authorities will be able to audit Brazilians in the US.
An agreement between the Brazilian and American governments, published this Wednesday in the Official Gazette of the Union, is a long-standing demand of the Federal Revenue Service, which will now be able to better monitor Brazilian companies in the United States and even combat money laundering; the text still needs to be approved by President Dilma.
Daniel Lima
Reporter from Agência Brasil
Brasilia - Published today (13) in the Official Gazette of the Union, a legislative decree approves the text of an agreement between the Brazilian and American governments for the exchange of tax information, which was celebrated between the two countries on March 20, 2007.
According to the Brazilian Federal Revenue Service, after being signed into law by President Dilma Rousseff, the agreement will allow the United States tax authorities to conduct inquiries about American citizens residing in Brazil, and the same will be possible for Brazilian citizens in that country.
The approval of the text is a long-standing demand of the Federal Revenue Service, which will allow for better oversight of Brazilian companies in the United States and, among other things, combat money laundering.
These agreements are common among member countries of the Organization for Economic Cooperation and Development (OECD), which had been demanding Brazilian participation, the tax authorities reported.
According to the decree, any actions that may result in a revision of the aforementioned agreement are subject to approval by the National Congress.
Editing: Denise Griesinger