I thought this one was funny (in a bad way).
So what I got from this new “strategy” around avoiding tax evasion here is (Brazilian friends please correct me if I am wrong):
Every time a consumer buys something, the store is obligated to offer a receipt that is assigned to the customer´s tax ID (CPF). Then, when customers declare their taxes at the end of a fiscal year they can receive a “rebate” based on the total amount of those receipts. So basically the government hopes that customers become a tax enforcer of sorts.
Amazingly, this crazy scheme seemed to make perfect sense for my fellow Brazilians. Why, some people are thriving on this! They ask for every single receipt, sometimes they even instruct other people (who don´t pay taxes) to use their tax Ids so to “maximize” the benefit.
My simples question was: has the government even considered lowering these taxes to decrease evasion? Has anyone thought of all the new costs associated with this new crazy policy?
This goes beyond not knowing Occam’s razor. This looks like a bunch of bureaucrats playing economists.