Originally published in the December 13 edition of World Tax Daily (Copyrights Tax Analysts – www.taxanalysts.com)
Brazil’s official gazette of November 29 published Normative Instruction No. 11,311/07, which creates a periodic and systematic internal procedure to verify and investigate the wealth accretion of revenue agents. The purpose of the procedure is to identify potential cases of illicit wealth increase and corruption.
The investigation procedure will be confidential and carried out by the Revenue Department’s Internal Affairs (Corregedoria-Geral, or COGER) and should rely only on technical and objective criteria to be defined by COGER’s coordinator.
COGER’s investigators will review possible inconsistencies between an agent’s assets and his/her earnings and income. COGER investigation teams may carry on field investigations, hear the relevant agent and witnesses; obtain documental evidence; and request breach of the agent’s bank secrecy.
COGER’s investigations must be concluded within 60 days, renewable for another 60-day period upon justified request. After concluding any investigation, the investigation team must prepare a report suggesting whether the case must be closed (because of lack of evidence) or remitted to competent authority to pursue disciplinary or other legal measures.
David Roberto R. Soares da Silva