Income Tax on the Distribution of Goods and Services by Prize Draw or Competition

Abstract

This article aims to analyze the constitutionality of article 63 of law n. 8.981/1995. This provision prescribes that the distribution of goods and services by drawing or competition will be taxed by income tax withheld exclusively at source. It is tried to demonstrate that the taxation exclusively at source, in this case, violate the constitutional norms that regulate the income tax, specially the rule of tax jurisdiction, because, the legal hypothesis taxes person who does not receive income. Moreover, for argumentative purposes, it will be shown that the Federal Revenue of Brazil’s interpretation of article 63 violate the article 43 of the National Tax Code, therefore, it seeks to tax hypothesis in which there is no availability of income.