The Brazilian Prize and Betting Secretariat (SPA) has joined forces with the Federal Revenue Office (RFB) to ensure that the legal gambling industry meets its tax obligations.
The gambling tax working group between SPA and RFB, named GTI-Bets, was established through Joint Ordinance No. 3 RFB/SPA/MF, which was published in the Official Gazette of the Brazilian Union.
SPA and RFB will jointly monitor the tax behavior of the gambling industry, as well as the ongoing compliance of authorized operators in Brazil.
In particular, GTI-Bets will focus on the regularity of taxation and is committed to preventing money laundering and other criminal activities.
The group consists of three members representing SPA, RFB's Inspection Sub-Secretariat (Sufis), and RFB's General Coordination of Research and Investigation (Copei). The representative from Sufis will coordinate this work.
GTI-Bets will operate for six months starting from January 8, but the secretariat may decide to extend its term.
The decree launching GTI-Bets was signed by RFB Special Secretary Robin Barreirinhas and SPA leader Regis Dudena.
How will the working group achieve its goals in Brazil?
A report will be submitted to the group's funding members every two months, and a summary report at the end of six months. The group can request information from any unit of the Ministry of Finance.
Although RFB will be able to supervise operators independently of SPA, it will promote self-regulation in the licensed gambling industry.
The legal gambling market in Brazil started on January 1, and currently, 14 companies have been officially licensed, with another 54 companies receiving temporary licenses.
RFB and SPA will share their data and experiences to help identify potential illegal activities of unlicensed operators, especially those involving financial crimes such as money laundering.
The group will also develop a compliance plan proposal to help standardize the tax obligations of operators applying for local licenses.
Furthermore, joint actions will be proposed to support the inspection work of Sufis and aim to establish channels for sharing relevant information.
Concerns about taxing foreign operators
In September last year, RFB Special Secretary Barreirinhas expressed concerns about taxing international companies not based in Brazil.
During a hearing at the Parliamentary Commission of Inquiry (CPI) on rigged games, Barreirinhas highlighted the difficulties brought by cross-border service provision and different tax regulations in various countries.
However, Normative Ordinance No. 827 stipulates that international companies must have the support of a local entity, which must be owned by at least 20% by Brazilian companies or investors. Licensed operators must also have a headquarters registered in Brazil.
