In addition to being an inherent obligation of the merchant's activity, failure to comply has serious implications, since this is one of the ways in which regulatory bodies exercise control.

The Brazilian Federal Revenue Service routinely tracks transactions, from the issuance of the purchase invoice to the receipt of the product by the final recipient, primarily through the SPED Fiscal and Accounting system.

Technology is advancing every day, enabling tax authorities to have more and more control over commercial operations.

For example, there's the so-called "half invoice." This is a common practice where a company issues an invoice for half the actual amount to be billed, with the other half being paid by the customer separately. This is a classic example of under-invoicing.

The consequence is outlined in Law 8.137/90, Article 1, Item III, characterizing the tax crime as tax evasion.

The law is clear in stipulating a prison sentence of 2 to 5 years and a fine, but the businessman may not be imprisoned if the imposed sentence does not exceed 4 years and the agent meets the subjective requirements to receive the benefit, according to article 44 of the Penal Code.

Furthermore, as if that weren't enough, the perpetrator may also be charged with "continued crime," if that is indeed the practice, increasing the penalty by 1/6 to 2/3.

In addition to criminal consequences, there is a tax penalty for providing false information, which can reach up to 150% of the evaded amount, plus interest.

In this scenario, the agent's excuse of ignorance will have no effect. It is essential that companies have technical support in the tax and criminal spheres, both preventive and in litigation.

Stay informed!

If you have any questions, please contact our team!

News commented on by Fabricio Norat, Lawyer, graduated in Law in 2014 by FMU/SP. Area of Expertise: Customs Law, Tax Law. Brazilian Bar Association (OAB): 431.023.

Source: Crumbs