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Brazil House Panel OKs Exchange Of Tax Information With US

October 29th, 2009

income-taxBrazil’s lower-house judiciary committee Wednesday gave approval for an accord with the U.S. government to exchange information on tax collection and supervision.

The agreement stipulates that any exchange of tax information can be made only in specific cases upon presentation of evidence of tax evasion.

The U.S. Department of the Treasury announced in March 2007 that it had signed with Brazil a tax-information-exchange agreement that “establishes the means by which the tax authorities of the United States and Brazil may exchange information for the purpose of facilitating the administration of both countries’ tax systems,” according to the U.S. Treasury’s Web site.

Under the agreement, U.S. and Brazilian tax authorities will be permitted to exchange information on taxpayers’ payments of federal income tax, goods and services taxes and financial, welfare and inheritance taxes. The accord doesn’t cover information on state and municipal taxes.

The bill will be submitted for final vote on the floor of Brazil’s lower house.

Brazil has similar tax-information accords with Portugal, Chile, France, South Africa, Argentina, Austria, China, Belgium, Italy and India.

By Gerald Jeffris

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