Brazil returned 50.9 billion reais by program for legalization of undeclared assets abroad

Brazil returned 50.9 billion reais (14 billion EUR) from paid taxes and fines, thanks to its program for legalization of undeclared Brazilian assets abroad. The resulting sum is equivalent to nearly 30% from all declared assets at total worth of 169.9 billion reais (48 billion EUR) and will help the government to fill the large budget deficit, expected in 2016.

“This program was great success”, said the head of the tax inspectorate, Jorge Rachid. “Now the program has ended and the tax inspectorate will continue to try to detect any illegal funds”, added he.

The program relies on the participation of foreign banks, especially some Swiss banks, which have asked their clients to regularize the tax situation of their assets because of the need for transparency. Following the requests, were received over 25,100 registrations from individuals and businesses.

The message followed the yesterday’s completion of the first stage of the tax amnesty in neighboring Argentina on undeclared capital worth 71 billion Argentine pesos (4.6 billion USD). The programs in Brazil and Argentina, which are the two largest South American economies, do not require the return of capital in the country, but their announcement to the tax authorities.

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