During a recent speech at the CDES - the Brazilian Social and Economic Development Council - the president of Brazil, Luiz Inácio Lula da Silva, said that he is not to blame for the nearly decade long postponing of the so-called "tax reform," which would be a major change in the Brazilian taxation system, one of world's heaviest, most confused and highly bureaucratic taxation systems.
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The Virtual Corporation written by Ricardo C. Amaral,
September 21, 2009
The above article said: "A Brazilian company at 1 billion dollar revenue needs 29 employees to take care of the taxation bureaucracy, the world average is 1 employee."
I doubt this statement is true.
Most companies with $ 1 billion US dollars in revenues most be an international company, and I doubt any 1 billion dollar company can operate with only one person working on its tax department.
That kind of information it does not make any sense to me.
Maybe these companies have 2 employees - one person generating the $ 1 billion dollar revenue and the other person working the tax side of the operation.
That is called a virtual corporation.
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The Virtual Corporation written by Ricardo C. Amaral,
September 21, 2009
These one billion dollar companies that has only 1 person handling the tax matters - his only responsibility is to outsource all the tax work to other corporations located in other countries.
******
Note:
virtual corporation: A business that has few employees and outsources nearly all its work.
.
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... written by João da Silva,
September 21, 2009
A very good article describing the reality of the current Tax system in Brasil.Kudos to Mr.Luciano Martins has raised some valid questions.
However,the probability of an ample Tax reform in the foreseeable future is almost zero.The reason is that we need plenty of tax revenue to implement the PAC,spend on defense,health, education,etc; For this reason, CSS is likely to approved with a larger percentage than its predecessor CPMF.
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a pity written by sage,
September 21, 2009
no tax reform is a pity. this is the only thing that holds Brasil back from her tru potential growth trajectory - 7% annually.
veja bem o presidente, fazer uma esforco supremo para passou reforma em sistema de taxas. esse para seu legado permanencia em historia de pais!
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Not enough workers to man the tax department written by Simpleton,
September 23, 2009
in a billion dollar company? What about us poor suckers going the microempresa route?
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To Ricardo "The above article said: "A Brazilian company at 1 billion dollar revenue needs 29 employees to take care of the taxation bureaucracy, the world average is 1 employee." written by ch.c.,
September 23, 2009
Sorry...sorrry...but the article most probably meant us$ 1 million...OBVIOUSLY !
You Ricardo Amaral the ONEWHOKNOWSEVERYTHING WHY DONT YOU READ IF YOU CAN...the Doing Business Ranking on the subject described in the article ?
Brazil is ranked SECOND WORST on earth on time needed for companies to figure out their due taxes. SECOND AFTER CAMEROON !!!!!!!!!
Viva Brazil and Cameroon ! they often shine at or near the bottom of many rankings !
Continue to caress your navel. It should be much infected by now !
On Lula answers it is strange that everything positive is due to HIM and everything negative is DUE TO..... OTHERS ! And this type of innocence/guilty has been his motto since his was elected nearly 7 years ago....strangely ! Has HE not even said that HE was betrayed by his own ranks at the time of the vote buying scandal in 2005 ?????? And that he was not responsible, innocent and knew nothing ??????
Lets face it, brazilians can only elect a cheater, liar, hider and corrupted to the roots as President, Governor, Senators or Mayors.
Because every brazilian secretly dream of becoming a direct beneficiary one way or another of your filthy system !
You are NOT Against Corruption, You are PRO Corruption ! And this explain why You elect, re-elect, re-re-elect, re-re-re-elect time and again people you know are TOTALLY CORRUPTED TO THE ROOTS !
Believing something will change for the better in Brazil is just an heresy and an utopia !
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And to Joao .... written by ch.c.,
September 23, 2009
why dont you refer to my other thread written 1-2 days ago, coincidentally, talking about the subject !
Many many many taxes create A NEED FOR GOVERNMENTS TO HIRE AN ARMY OF EMPLOYEES ...TOTALLY UNNECESSARY ! Problem further multiplied because corporations will then also need to hire NECESSARY..... BUT UNPRODUCTIVE PEOPLE...TO MATCH THE GOVERNMENTS MANY TAX FORMS !
And all this at the expense of GENERATING PRODUCTIVE GOODS AND SERVICES...WHO THEN WOULD GENERATE MORE PROFITS AND THUS MORE TAXES...AND THUS MORE REDISTRIBUTION OF THE COLLECTED TAXES (AND BETTER SALARIES AT THE CORPORATIONS LEVELS) BECAUSE LESS IT KEPT WHERE IT HAS NO REASON TO BE KEPT!
Results would then be.....more money available for infrastructure, healthcare, education...meaning also more JOBS, MORE PRODUCTIVE WORKERS...AND BETTER PAID WORKERS !
It would just end up as a snowball of positive effects, instead of a snowball of negative effects as Brazil does now !
ONE LESS GOVERNMENT UNECESSARY EMPLOYEE...END UP AS TWO NEW NECESSARY EMPLOYEE IN THE SOCIETY.
But...but...brazilians are so sure to be so superiors to others (when reading them about their apparent prowess...never proven)....that they cant stop shooting in their own rear....because they can no longer realize the EVIDENCE OF COMMON SENSE ! Sadly this is transmitted from generations to generations. This is by now in your genes, blood and ADN !
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Hmmmmmm........ written by ch.c.,
September 23, 2009
Hopefully you understood My Sarcasms on the us$ 1 million...obviously !!!
My point is this : - wether it is us$ 1 billion, 100 millions, 10 million or 1 million it doesnt change anything. IT IS THE RATIO 29 TO 1 THAT COUNTS ! One may as well say 29 hours against 1. The ratio is the same.
Furthermore... when looking at the Doing Business Ranking Report, although I did not figured out the AVERAGE, with many developed nations and some emerging nations the RATIO IS EVEN....MUCH MUCH MUCH WORSE THAN 29 TO 1.
At times it is GREATER than 100 to 1 and may go as high as 150 to 1 !!!! Whoaaaaaaaaaa !!!!! Incredible.... but true !
And hopefully all brazilians know that since Lula was elected....things got worse on these ratios. Has he NOT hired many many many many new Governments employees since he was elected ? And in an already OVERLoaded Bureaucracy ?
And in all administrative departments and not only in the overloaded tax dept ?????
Noooooo Ricardo Amaral the Brazilian Junkie. THIS IS NOT VIRTUAL....THIS IS REAL AND HARSH REALITY IN BRAZILIAN DAILY LIFE, and wether you like it or not will not change COMPARATIVE FACTS & REALITIES !
Enjoy the World Largest Army of UNECESSARY AND TOTALLY UNPRODUCTIVE BUREAUCRATS.....COMPARATIVELY SPEAKING !
I agree in part but question the accuracy of many of the statistics. And there is a great discrepancy between official taxation levels and what people actually pay. In Brazil the "pay no tax" earning level is high - I may be wrong but I think Brazilians earning up to about r$12000 per month tax free. Certainly not the case in the UK. A great many businesses happily dodge paying taxes entirely. And of course there is the enormous number of "informal" workers who also pay no tax. I´m not questioning the article entirely, but I´m not sure it´s fair to paint a picture of a Brazilian swimming in money (and squandering it). Endless, confusing and unnecessary paperwork and bureaucracy, though - yes, yes, yes. Isn´t it in the constitution?
You are right, I misspelled it, it is on million. So you become a little less doubtfull on the statistis I have mentioned take a look o the recent world bank's report calle DOING BUSINESS 2010.
Unfortunatly I have to say Brazil is the world's most complex and proportionally heavy taxation system nowadays. I would go even further away and say Brazil is a curious manifestation of a new kind of dicatatorship, very subtle, technical and well succeded one that is a lot more efficient that the Nazis were in making millions of slaves.
Thanks for all the attention given to my humble text.
I would go even further away and say Brazil is a curious manifestation of a new kind of dicatatorship, very subtle, technical and well succeded one that is a lot more efficient that the Nazis were in making millions of slaves.
100% correct.
Thanks for all the attention given to my humble text.
Your article was not "humble", but factual. With the current tax structure and labor laws, we are not going to attract any "productive" investments. Uruguay and Chile are far ahead of us. Dunno about Argentina.
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James Young written by João da Silva,
October 03, 2009
Um, that should be r$12,000 per year. Obviously. Sorry.
Those who are earning R$12,000/year or less may be exempt from paying personal taxes.But everybody pays heavy indirect taxes when buying anything. The Federal and state taxes are quite high compared to other countries and unfortunately the tax rates are not shown separately in bills of sales to the consumers.
The author Luciano Martins´s facts and figures are absolutely correct. One rarely reads articles in this magazine about the absurd tax rates in Brasil and I am glad he had the courage to publish one regarding this thorny issue.
During a recent speech at the CDES - the Brazilian Social and Economic Development Council - the president of Brazil, Luiz Inácio Lula da Silva, said that he is not to blame for the nearly decade long postponing of the so-called "tax reform," which would be a major change in the Brazilian taxation system, one of world's heaviest, most confused and highly bureaucratic taxation systems. 
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The above article said: "A Brazilian company at 1 billion dollar revenue needs 29 employees to take care of the taxation bureaucracy, the world average is 1 employee."
I doubt this statement is true.
Most companies with $ 1 billion US dollars in revenues most be an international company, and I doubt any 1 billion dollar company can operate with only one person working on its tax department.
That kind of information it does not make any sense to me.
Maybe these companies have 2 employees - one person generating the $ 1 billion dollar revenue and the other person working the tax side of the operation.
That is called a virtual corporation.