The Tax Reform Act No. 20,780 of 2014 and the simplification Law No. 20,899, recently approved, give the SII of certain powers of oversight, and make tax compliance easier with modern technological tools, considering the opinion of various actors in the country that recognize the continuous evolution of business.
These initiatives were promoted by the Internal Revenue Service, considering different comparative studies of international experiences, which indicate that tax compliance is fundamentally explained in part by the level of confidence of taxpayers in the Tax Administration and the understanding we have of tax obligations. Trust and understanding must be translated into support and ongoing guidance for taxpayers who meet or want to consistently meet their tax obligations, as well as a strong oversight for which repeatedly show defaults, which not only injure the national tax base, but generate unfair and inequitable competition, causing irreparable damage to the state, to finance public policies and to the functioning of markets.
Both laws were promoted or supported from the SII initiatives such as the postponement of VAT for small taxpayers, the creation of the new Taxpayer Assistance Office, the electronic notification, electronic record, the term simplified rotation, and training activities and agreements to promote tax compliance. All these actions will undoubtedly facilitate the relationship of IBS with taxpayers and that will strengthen the criteria of impartiality, proportionality, openness, responsiveness and transparency that should characterize relations with citizens.
Under this context, one of the most important initiatives is the institution of public consultation, incorporated in the tax system by Law No. 20,780 Law. This law means that those instructions and interpretations that have only general on new tax rules or modify previous interpretative criteria, should be subject to consultation of citizens. This is a milestone that puts again to our country at the forefront in the field of modern tax administrations and improves relations with the public, because with this tool is allowed to collect doubts interpretation before issuing instructions and official circulars, as well as contribute to avoid costly subsequent procedures and strength confidences based on collaborative models of tax compliance.
This is an example of the vision and action of a Public Service that permanently contributes to development and economic and social welfare of our country.