ADVERTISING

Latest Photo Galleries

Signs of Tension Signs of Tension

Published on 04/11/2016

Rio: a City in Metamorphosis Rio: a City in Metamorphosis

Published on 11/19/2015

Brazilian Markets

18h30

Bovespa

+1,27% 73.437

16h43

Gold

0,00% 117

17h00

Dollar

-0,48% 3,2640

16h30

Euro

+0,49% 2,65250

ADVERTISING

Judges' Extra Compensation Targeted by Federal Revenue Service

11/09/2017 - 12h02

Advertising

JULIO WIZIACK
MAELI PRADO
FROM BRASÍLIA

The Federal Revenue Service is mounting an operation to calculate benefits that Magistrates have improperly incorporated into their compensation, according to auditors, as taxable income and subject to income tax. The payment of these benefits, such as living expense allowances, is provided for by law.

Since these benefits are not considered as part of basic compensation, they aren't subject to income tax calculations and payments. Living expense allowances cost the treasure around R$ 1 billion (US$ 308 million) per year and added to direct salary push total compensation for the Judiciary beyond the maximum level permitted by law (R$ 33.7 thousand, or US$ 10.4 thousand) for federal employees.

Also targeted by fiscal agents are Federal and Judicial Prosecutors and Defenders, and employees of the Accounts Auditing Courts from the States. A task force is expected to conclude a data analysis by the end of the year which will determine who is improperly receiving the benefits.

The Revenue Service will consider any living expense allowances not spent as taxable compensation like salary and will calculate and charge income taxes on amounts paid this year. If all Magistrates were included in this manner by fiscal agents, the amount charged could reach as much as R$ 330 million (US$ 102 million).

Translated by LLOYD HARDER

Read the article in the original language

You have been successfully subscribed. Thanks!

Close

Are you interested in news from Brazil?

Subscribe to our English language newsletter, delivered to your inbox every working day, and keep up-to-date with the most important news from Brazil.

Cancel