2025 Tax Reform Exposes Hidden Flaws and Puts Brazil on a Path to Legal Conflicts with Controversial “Sin Tax”

Written by Caio Aviz

Published on 08/11/2025 at 11:00

Imagem ilustrativa mostrando um martelo jurídico, documentos fiscais e a bandeira do Brasil, elementos que remetem às críticas da OAB sobre insegurança jurídica e o imposto do pecado.

6 people reacted to this.

OAB Criticism About Risks and Distortions

The tax attorney of the Federal Council of the OAB, Luiz Gustavo Bichara, stated on November 7, 2024, at the Buenos Aires Forum, that the approved text of the tax reform creates legal uncertainty.
He stated that the text presents normative contradictions and lack of technical clarity on key points of the new model.
Moreover, he stressed that the implementation of the “sin tax” generates economic distortions.
This occurs because the tax affects strategic products, such as iron ore, even though it is one of the most relevant items in the Brazilian trade balance.

Decision on Topic 1,182 Regarding ICMS, IRPJ (Corporate Income Tax), and CSLL (Social Contribution on Net Profit) Incentives Conflicts with the Stance of the Federal Revenue

Direct Impact on Strategic Sectors

According to Bichara, the new tax could harm the competitiveness of essential sectors.
This occurs because the model creates conflicts between tax norms, which compromises predictability and may deter investments.
He highlighted that the concept of effective rate does not exist in the legislation.
“If the company is taxed at an effective rate of 34%, the 10% of the individual is not taxed.”, he stated.
He then questioned: “But what is an effective rate?”.
Additionally, he emphasized that there is no clarity regarding deductions for tax losses.
This lack of clarity creates the risk of taxation on assets.

ARTICLE CONTINUES BELOW

Contradictions in Profit Taxation

The attorney warned that the taxation of accumulated profits violates basic principles of legal certainty.
This problem arises because it interferes with gains obtained during periods of existing exemptions.
“Of course, the profit generated while the exemption regime was in effect cannot be taxed now.”, he stated.
He reinforced that this measure violates legal certainty.
Moreover, the attorney indicated that the approved text presents legal contradictions.
According to him, the project allows declared and paid profits in 2024 to be distributed until 2028.
However, the SSA law prevents the distribution of profits approved in one year to another.
This scenario thus creates a primary normative conflict.

0 Comments

most recent

older Most voted

2025 Tax Reform Exposes Hidden Flaws and Puts Brazil on a Path to Legal Conflicts with Controversial “Sin Tax”

OAB Criticism About Risks and Distortions

Direct Impact on Strategic Sectors

Contradictions in Profit Taxation

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

SpaceX will dock a $843 million vehicle to the International Space Station to push a nearly 420-ton laboratory against the atmosphere and make the debris fall in a controlled manner into the ocean.

Bacteria in Crystal mineral water prompts Anvisa to act, and a 500 ml batch sold in several states must be withdrawn from circulation.

How does the Strada remain a leader in Brazil? Fiat bets on a 1.3 flex engine, a 130 hp turbo version, and a cargo bed of up to 1,354 liters to keep the pickup at the top of the Brazilian market.

Chamber votes on a bill that changes the cart law and may require the delivery of animals to allow electric tricycles in BH

Surprising the advanced computing sector, Microsoft unveils the Majorana 2 quantum chip with greater stability, direct integration with artificial intelligence, and an unprecedented architecture that could accelerate the global race for commercially viable quantum computers.

Before Apollo reached the Moon, the US studied a nuclear spacecraft the size of a 20-story building: Project Orion would weigh 4,000 tons, be propelled by 800 atomic explosions in series, and carry 8 astronauts on a round trip to Mars in 125 days.

2025 Tax Reform Exposes Hidden Flaws and Puts Brazil on a Path to Legal Conflicts with Controversial “Sin Tax”

OAB Criticism About Risks and Distortions

Direct Impact on Strategic Sectors

Contradictions in Profit Taxation

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

SpaceX will dock a $843 million vehicle to the International Space Station to push a nearly 420-ton laboratory against the atmosphere and make the debris fall in a controlled manner into the ocean.

Chamber votes on a bill that changes the cart law and may require the delivery of animals to allow electric tricycles in BH

Structural and finishing warranties: understand the rights that can prevent losses for the buyer of a new property

Brazilian justice orders the Union, Iphan, Pará, and the City Hall to “save” the ghost town of Fordlândia from ruins, with a diagnosis in 90 days, land regularization, and fines for the abandonment of historical heritage.

Braking only in front of the radar and accelerating right after may no longer be an option for drivers, because BR-101 in Espírito Santo tested a system that measures the average speed over an entire stretch and caught a car at 124 km/h on a 60 km/h road.

Bacteria in Crystal mineral water prompts Anvisa to act, and a 500 ml batch sold in several states must be withdrawn from circulation.

How does the Strada remain a leader in Brazil? Fiat bets on a 1.3 flex engine, a 130 hp turbo version, and a cargo bed of up to 1,354 liters to keep the pickup at the top of the Brazilian market.

Chamber votes on a bill that changes the cart law and may require the delivery of animals to allow electric tricycles in BH

Surprising the advanced computing sector, Microsoft unveils the Majorana 2 quantum chip with greater stability, direct integration with artificial intelligence, and an unprecedented architecture that could accelerate the global race for commercially viable quantum computers.

Before Apollo reached the Moon, the US studied a nuclear spacecraft the size of a 20-story building: Project Orion would weigh 4,000 tons, be propelled by 800 atomic explosions in series, and carry 8 astronauts on a round trip to Mars in 125 days.