Under the Brazilian Federal Constitution, the authority to institute taxes is distributed and delineated among the federative entities, with the objective of tax collection, and the activity of auditing is fundamental to ensure fiscal compliance from taxpayers.
At the federal level, the auditing activity is planned annually through a specific plan that delineates and concentrates the auditing workforce in certain sectors.
More specifically, on April 8, 2024, the Brazilian Federal Revenue Service published its “Annual Audit Report” to define the priority measures that the said fiscal body will adopt in 2024 to ensure that auditing actions do not contradict the current determinations of the national Tax System, in addition to encouraging the fulfillment of tax obligations by taxpayers, ensuring their tax compliance.
Such report brings structural measures, which include initiatives intended to improve the areas of Auditing, interaction with society, and the enhancement of the fiscal body’s own systems so that taxpayers can fulfill their ancillary obligations more efficiently.
Also noteworthy is the special concern of the Federal Revenue Service regarding the improper use of tax losses, improper appropriation of PIS/COFINS [Social Integration Program/Social Security Financing Contribution] credits, and improper exclusions related to the Assets Law [Lei do Bem] benefits.
As measures to simplify the tax relationship between the tax authority and the taxpayer, it is worth highlighting the section of the audit plan regarding the implementation – still in 2024 – of actions to facilitate the filling out of the ECF (ancillary obligation related to Corporate Income Tax (IRPJ) calculations) and also the provision of a Tax Guidance Manual.
As assistance measures, intended to guide taxpayers towards self-regularization concerning tax issues identified by the Federal Revenue Service, this body shall send communications and open deadlines for self-regularizations of discrepancies/irregularities focusing on matters of CIDE (Contribution for Intervention in the Economic Domain) Remittances and PIS/COFINS Importation on remittances abroad, CSLL (Social Contribution on Net Profit) concerning Themes 881 and 885 of the Brazilian Supreme Federal Court (STF), Taxation of IRPJ and CSLL on the “Thesis of the Century” (exclusion of ICMS (Tax on Distribution of Goods and Services) from the PIS and COFINS calculation base) and issues related to the Digital Tax Mesh.
Finally, there are coercive control measures, which cover audits applied in cases of deliberate non-compliance with tax obligations, such as fraud, and in cases where taxpayers remain irregular after the opportunity for self-regularization.
Additionally, there is also an express concern regarding taxpayers who acquired improper tax credits for investment subsidies (and did not self-regularize in 2023) and taxpayers with high tax compliance risk or who have operations with signs of fraud, who will be subject to special monitoring.
Therefore, the 2024 Annual Audit Report establishes strategic measures to ensure compliance with tax obligations (main and ancillary), which is why it is essential for companies to have a critical and strategic view to be prepared for the movements of the Federal Revenue Service during the year, as this document allows identifying the central themes of the Federal Revenue Service’s actions, enabling adequate preparation and prevention of possible tax assessments.