On November 19th, 2018 the Brazilian Federal Revenue Service (BRS) issued Ordinance No 1,788 determining the adoption of a data-sharing mechanism based on blockchain technology, until July 31st, 2019.

Currently, the General Coordination of Information Technology (Cotec) manages the data sharing by the BRS with other agencies and bodies of the Brazilian Public Administration. Upon receiving a formal request for data, Cotec authorizes the relevant BRS IT service provider to release the information requested.

According the new rules, as of July 31st, 2019, the BRS will no longer replicate data, but rather only use blockchain or other means authorized by Cotec to circulate original data.

This innovative G2G (Government-to-Government) solution aims at increasing security, integration and efficiency in data and information sharing by the BRS (as is the case of the data on Individuals Taxpayers Roll CPF) with other entities and bodies of the Public Administration.

The model will initially be used mainly for data-sharing related to CPF information. As from July 2019, the bCPF , the CPF blockchain, will be made available for authorised entities that request data, which will be part of the chain. Changes and accesses will be trackable (auditable and free source code software). This solution will also use smart contracts, which include features and additional controls that make the system safer and enable, for example, the change in the information by the entity requesting the relevant data.

This solution is being developed jointly with Dataprev (company responsible for Social Security IT) and is already being reviewed by the Council of Federal Justice. Full migration is expected to be completed in 6 months.

The use of blockchain by the BRS indicates a modernization in its policies for data sharing, use and alteration. It also presents a whole new range of possibilities regarding G2G solutions to be developed by the BRS for the efficient integration and security in the exchange taxpayer-related information. The digitization of the interaction between tax authorities, on one hand, and taxpayers, on the other, is a natural trend and we continue to follow closely all developments.

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