Understanding CONFIA: The Brazilian Cooperative Compliance Program

Cooperative Compliance is a relationship between taxpayers and Tax Administration based on principles like good faith, collaboration, and transparency. CONFIA aims to provide legal certainty, prevent disputes, reduce compliance costs, and improve tax compliance through voluntary and cooperative development. The biggest challenge lies in cultural change, requiring investments in capacity building and communication. The program's development involves phases like alignment, design, testing, implementation, and expansion.

• Cooperative Compliance
• Tax Administration
• Legal Certainty
• Cultural Change
• Capacity Building

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Uploaded on Mar 26, 2024 | 1 Views

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2. CONFIA The Brazilian Cooperative Compliance Program

3. What is Cooperative Compliance? It is the relationship between taxpayers and Tax Administration With dialogue and mutual benefits Based on: the principle of good faith the spirit of collaboration transparency justified trust legal certainty

4. What are the main objectives of Confia? Provide legal certainty Prevent disputes Reduce compliance costs Improve business environment Improve tax compliance NO NO What are the diferences between Confia and self-regularization? Voluntary Relationship Joint and cooperative development Behavioral economics and risk management techniques Preventive, continuous and systemic analysis

5. What is Confias biggest challenge? The cultural change is a critical success factor for the Confia Program. However, to achieve it, it is necessary to invest in capacity building and communication. Communication Cultural Change Capacity Building "Communicating Cooperative Compliance - Obtaining Trust from Society" Jeffrey Owens

6. Development Phases Align Design Test Implement Expand Confia National Center

7. How is Confia being developed? Management Dialogue Forum Propositional Purpose Relacionamento Committee Deliberative Body (RFB Leadership) (Joint Development and Interaction with Taxpayers)

8. Cooperative since the design 41 largest taxpayers 3 representatives of economic sectors Industry Finance Commerce Dialogue Forum Infra structure Service

9. Test of Procedures Cooperative Renewal of Tax Certificate (CND) Cooperative Analysis of Tax Issues RFB Point of Contact TEST OF PROCEDURES - 9 voluntary taxpayers within the members of the Dialogue Forum Main benefits: communication, relationship, regularization of inconsistencies, improvement in governance, mutual understandings, improvement of processes, cooperative renewal of Tax Certificate (CND) and draw a clear distinction between disagreements and objective information.

10. Structure of Confias Draft Bill CHAPTER I The Confia Program Section I The Program Art. 2nd Definition and target audience Chapter II Principles Art. 3rd Principles Chapter III Duties Art. 4th General Duties Art. 5th RFB Duties Art. 6th Taxpayers Duties Chapter IV The working processes Art. 7th Disclosure and monitoring Art. 8th Agreement: Self-regulation without late payment fine o sem multa de mora Art. 9th Disagreement: Imposition of tax penalties by Tax Officers changes the current model of tax sanctions for Confia Art. 10 Dispute resolution incentive to reduce disputes at the administrative level Chapter V Eligibility and exclusion criteria Art. 11 Eligibility criteria Art. 12 Exclusion criteria Confia is a voluntary cooperative compliance program that fosters compliance through a cooperative relationship. Taxpayers that have a solid business governance and a tax compliance management system.

11. The Confia Pilot Program Next phase after a test of procedures Eligible for RFB s largest taxpayers category (around 1.500) New quantitative and qualitative requirements for Confia s candidate taxpayers selection Tiebreaker criteria to optimize RFB s operational capacity Testing the Program s eligibility criteria

12. Do you want to know the latest news from Confia?

13. Questions? confia@rfb.gov.br confia@rfb.gov.br

14. Tax Administration and Taxpayers: Together we are fundamental to developing CONFIA jointly and cooperatively