Articles include:
Brazil’s new rules constraining the deductibility of interest payments by ‘thinly capitalized’ companies are among the most stringent in the world. They are designed not only to protect tax revenues but also to bring new pressure to bear on offshore tax havens. Here the key features of the new rules are explored. Contrasting regimes in Mexico and Germany are outlined for context.
Brazil is one of the fastest-growing major global economies. It also has significant fiscal and economic imbalances to address, and an urgent need for increased investment in infrastructure. The range of incentives available to encourage foreign investment should allow the government to pursue its objectives in this area while keeping other economic and financial challenges in balance.
Many of the major developed economies – but not all – are introducing taxes or levies on banks in the aftermath of the financial crisis. The motivations are clear in broad terms, but differ in detail between jurisdictions. The notion of a coordinated global approach was probably never realistic: the patchwork of different levies now being introduced reflects individual national priorities and also different emphases in the case for such levies in the first place.