Ken wrote: ↑Wed Jan 10, 2024 4:11 pm
I have been to many Catholic countries with lots of corruption. But in no case was there any confusion about what taxes were owed even when tax evasion was pervasive. That is a canard. Often it is just venders who don't charge sales tax for cash sales in an attempt to increase their sales under the table so to speak. But adding to the corruption through your own corrupt acts does not make things better, it makes things worse because you, yourself become part of the problem.
As I understand it, in Brazil, for business owners or farmers, they go to their accountant and the accountant basically asks how much taxes they feel they can pay. Then the accountant gets busy figuring out the actual numbers. This is not how accounting is done in America.
The Brazilian system is notoriously corrupt (see
https://www.internationaltaxreview.com/ ... -in-brazil ). The nominal tax rate for a typical company ends up being 68%. This is honoured more in breach than observance; estimates are that about 60% of taxes nominally owed go uncollected.
From
https://www.avalara.com/blog/en/north-a ... razil.html ,
Domestic businesses with 10 to 50 employees typically spend an astounding 2,600 hours complying with Brazil’s tax code each year — more than eight times longer than is usually spent on tax compliance in the United States or European Union.
Given the absolute nightmare of compliance in that environment, I would agree with the priest who would tell a small business owner to simply do what is customary that everyone else does in this particular department.
Or I suppose he could make you happy, try to file and pay the taxes owed, and then go out of business and fire his workers because he won't have any money left to pay them.