Thursday, September 25, 2014

R$27.5bn in atypical revenues in 2015

The 2015 budget proposal, sent by the government to Congress in late August, was prepared with the forecast of non-recurring or atypical revenues of R$27.5 billion, higher than the one forecast for this year. The numbers indicate that, in order to achieve what it sets out to, the government may have planned for next year a new Refis — the tax-settlement program that offers interest and fine discounts to end collection disputes.

An atypical or non-recurring revenue is the one that is not part of the regular flow of tax collections in the ongoing fiscal year. It generally refers to previous years and are due to tax actions carried out by the Federal Revenue and by the Office of the Attorney-General of the National Finance (PGFN). By definition, the final amount to be obtained with this type of revenue is unpredictable, but the government tends to project a certain amount it expects to obtain in the budget proposal of each year, based on information it has about court litigation close to conclusion or on political decisions, such as the offering of a settlement with favorable conditions to taxpayers.