Angelo Ambrizzi
Lawyer at Marcos Martins Advogados
Brazil’s tax burden is one of the highest in the world and its tax legislation, besides being extensive, is extremely complex. These are sufficient ingredients to create uncertainty among companies when it comes to understanding the taxation of their operations.
This scenario of uncertainty provides an environment ripe for million-dollar assessments in view of the possible interpretations and inconsistencies of tax laws.
In addition, sectoral or global crises have an unexpected impact on some businesses, preventing taxes from being paid on time, whether due to an increase in raw materials or a reduction in turnover, exchange rate fluctuations, among other factors.
Over almost two decades of experience, the tax team at Marcos Martins Advogados has noticed that most companies have tax debts that exceed the company’s ability to pay them, in other words, the creation of “unpayable” debts.
Faced with this gap, the Tax team built a fully interactive tool called Tax Dashboard, which allows companies to manage their entire tax situation with the main aim of adapting the debt to the company’s cash flow.
The tool is fully customizable and interactive to the needs of each company, based on data extracted from official tax situation reports issued by the tax authorities, as well as analyses of existing administrative and judicial proceedings.
In addition, it makes it possible to build a debt timeline using as a premise the moment when the liability generates a cash effect for the company, with this model being replicated in various short-, medium- and long-term payment scenarios.
Once the company’s tax liabilities have been analyzed in detail by sphere, tax, prognosis, debt phase, criminal risks and other filters, possible scenario projections are made for debt repayment according to the company’s cash flow.
It is also possible to measure the possible credits that companies have due to the overpayments they have made in the last five years, the amounts of which will be used in the long-term strategy for amortizing or settling the tax debt.
This type of tool allows business owners to carry out strategic management of their tax liabilities by having a complete view of the debt, modulating scenarios in real time, applying legal intelligence to forecast assumptions and payment times, and finally, analyzing the possible amounts of tax credits against the tax authorities and the projection of receipts for amortization of the tax debt.
If you are interested in finding out more about the Tax Dashboard, click here.
