Tax regulatory process in Brazil as public policy intervention tool: Its mechanisms and impacts

Resumen

Purpose ”“ This article aims to provide an inicial analysis of the regulation process in the current Brazilian tax environment. It also intends to investigate whether those tax administrative regulations have their guidelines extracted from a legal-procedural theory that allows them to be clear, simple and trusty on their rulemaking process.

Methodology/approach/design ”“ The text adopts as methodological approach the regulatory administrative procedure that is actually applied by Brazil’s Revenue Service (Portuguese acronym: SRF), Foreign Trade Chamber (Portuguese acronym: Camex), National Committee on Revenue Policy (Portuguese acronym: Confaz), and Revenue Appeal Chamber (Portuguese acronym: Carf), considered the regulatory influence and the economic consequences that they entail. As a guideline to this text, some theoretical assumptions needs to be made on public choice and public interest theories, based on Steven P. Croley criticism, and on legal analysis of economic policy developed by Marcus Faro de Castro.

Findings ”“ Debates on proposed reforms of Brazil’s tax system have brought about concerns related to excessive amount of regulations, leading to lack of perception of safety, clarity and confidence in the national legal environment.Practical implications ”“ It provides basic guidelines to developing a regulatory rulemaking process focused on taxation.

Originality/value ”“ This article fosters the debate on the Brazilian tax system simplification, transparency, and publicity, focusing on regulatory rulemaking process and on social participating at the discussion agenda about tax public policies and regulation.