Business team reviewing graphs and data in an office setting. — The Tax Management Options That You
In view of this being a preliminary exploration of the data, we should see the results contained in this study only as an approximation, as a line of observation. More important than the magnitude of the estimated effects, is the fact that we obtained evidence of the deleterious impacts of the current tax burden on our country’s long-term economic growth.
In this article, you will learn important information about the tax authorities and companies, understanding how the agency works, the main problems that the company may have and how to avoid them. You can choose the best tax software for tax preparers to get the data as well.
Conclusions and Suggestions for Economic Policy
This data points to indications that the increase in the tax burden, in the last 15 years, had an impact on the low economic performance of the economy. The results found suggest a high sensitivity of the GDP to the tax burden. This means that, in the long run, the increase in the tax burden has negative impacts, and of significant magnitude, on economic growth. Our preliminary results suggest that, taken in isolation, the 1% increase in the tax burden reduces GDP in the long run by up to 3.8%. As previously mentioned, more important than the magnitude of the reduction in GDP (which due to the statistical problems mentioned above should be seen as an upper limit), is the indication that the Brazilian tax burden is posing an obstacle to long-term growth.
In relation to the short term, we found that an increase of 1% in the growth rate of the tax burden generates a reduction of 0.42% in the GDP growth rate. In other words, even in the short term, the performance of GDP would be severely hampered by increases in the tax burden.
The economic policy conclusion of this article is obvious: possibly reducing the current tax burden would have the potential to boost the short-term, and above all, long-term economic growth of the economy.
- The name Fisco refers to the farm authority that has the function of controlling and inspecting compliance with tax legislation.
- The Tax Authorities are an old acquaintance of the managers, mainly for the influence that this organ has in the organizational routines.
- Therefore, it is important to be aware of compliance with legislation and the importance of accounting advice in business practices.
How does the tax authorities work?
When talking about tax authorities it is important to know the concept of this body and understand that it comprises three distinct levels:
Municipal Tax Authorities: authority responsible for the collection and inspection of municipal taxes. For example, the Service Tax (ISS) is a municipal competence.
State Tax Authorities:
Authority responsible for the collection and inspection of state taxes. For example, the Tax on Circulation of Goods and Services (ICMS) is a state responsibility.Federal Tax Authorities: authority responsible for the collection and inspection of federal taxes. For example, Income Tax (IR) is a federal competence.Each farm authority has the ability to monitor compliance with tax obligations to the extent of its powers.
