Friday 23 April 2010

Fighting tax evasion - 2 tactics from South America

1) In Argentina, tax autorithies rebate the taxpayer on your debit card expenses. That way, it reduces the opportunity of tax evasion from businesses (especially restaurants, apparel stores,...)

2) In Brazil, when you ask for an invoice (nota fiscal) in a restaurant / shop / ..., that is directly issued by the central taxes autorithy (yes, the service owner needs to log to a governmental portal that will then issue the invoice). Taxpayers are sweetned to ask for invoices, as there is a lottery associated, that (if you win) will give you millions of reais as a prize.

I am not sure if these tactics are working... but they are really different from what I am used to!

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