The International Mutual Assistance in Tax Matters and Brazil

Theoretical Contributions

Abstract

The establishment of norms aimed at allowing a greater distribution of fiscal benefits and different fiscal treatments, in order to attract foreign investments and to foster the local market, as well as the internal competition, in the environment of globalization, boosted the phenomenon of capital flight. Practices such as tax evasion and the aggressive tax planning, adopted by taxpayers for omission purposes or reduction of the tax burden on their operations, led tax administrations as a necessity to readjust their internal tax systems and, mainly, their control mechanisms. It is in this context that the discussion about the importance of adopting the exchange of information for tax finances will be edify, mainly as a means making tax justice feasible in income taxation, as well as of establishing and rendering effective international tax transparency. For this purpose, the essential components of mutual international assistance will be addressed, in line with the instruments of the Multilateral Agreement and FATCA.