Brazil's Chamber Approves Bill to Crack Down on Repeat Tax Dodgers

Overview

• The House passed the Senate text 436–2, allowing the proposal to go straight to presidential review.
• The bill defines a substantial federal debt as at least R$15 million and greater than 100% of the taxpayer’s known assets, with repeated and unjustified nonpayment as a key criterion.
• Tax authorities must notify suspected offenders and grant 30 days to pay or present a defense with suspensive effect, with exceptions for schemes set up to defraud or tied to criminal organizations.
• Sanctions include exclusion from public procurement, loss of tax incentives, and restrictions on seeking or continuing judicial recovery when structured fraud is identified.
• The Finance Ministry and Receita plan refined mapping focused on fuel and cigarette sectors and cite roughly 1,200 CNPJs with about R$200 billion in debts, with initial enforcement results expected in the first half of 2026.