"Law No. 13,254/2016 was regulated by Normative Ruling No. 1,627/2016, which sets out the rules for the Special Regime for Monetary and Tax Regulation, the Brazilian voluntary disclosure program ("RERCT"), providing that residents in Brazil in December 31, 2014, can disclose unreported foreign assets. This is the first time that the Brazilian legislation provides for a criminal amnesty related to the failure to report foreign assets by residents. Requirements are the disclosure of the assets to the Federal Revenue Office and the payment of the income tax (15%) and the fine (15%).
The adherence to the program also leads to the cure of the criminal liability of the following crimes: (i) illegal remittance of funds/currency abroad; (ii) Failing to report deposits abroad to the Brazilian Central Bank; (iii) tax fraud; (iv) forgery and money laundering offenses related to the above mentioned offenses. Even those individuals who no longer have assets are eligible to the amnesty program as means of curing the criminal liability.
The amnesty program is not applicable to: (i) Non-residents or non-domiciled in Brazil in December 31, 2014; (ii) individuals convicted for the criminal offenses above mentioned; (iii) individuals whose assets are originated from misconducts not covered by the amnesty program; and (iv) holders of public positions, employment or functions, their spouses and blood relatives and in-laws, up to the second degree or adopted, at the time of the law′s publication.
Brazilian Government Authorities can neither use the disclosed documents as the only ground to start administrative/criminal investigations, nor share the information with the States/Municipalities authorities".
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