Brazil’s Secretariat of Prizes and Bets (SPA) has joined forces with the government’s Federal Revenue Service (RFB) to ensure the legal gambling sector is meeting their tax requirements.
The betting tax working group between the SPA and RFB, named the GTI-Bets, was announced via Joint Ordinance RFB/SPA/MF No. 3, published in the Brazil Official Gazette of the Union on Wednesday (8 January).
The SPA and RFB will work together to monitor the betting sector’s behaviour in regards to tax, and the continued compliance of authorised operators in Brazil.
In particular, GTI-Bets will focus on the regularity of tax, as well as working to prevent money laundering and other crimes.
The group will be comprised of three members representing the SPA, the sub-secretariat of inspection of the RFB (Sufis) and the RFB’s general coordination of research and investigation department (Copei). The Sufis representative will coordinate the work.
GTI-Bets will last for an initial six-month period from 8 January, though the secretaries can decide to extend its duration.
The ordinance to announce the launch of the GTI-Bets was signed by both Robin Barreirinhas, the RFB’s special secretary, as well as SPA leader Regis Dudena.
How will the working group achieve its aims in Brazil?
Bimonthly reports will be presented to the funding members of the group, as well as a conclusive report at the end of the six-month period. The group is able to request information from any Ministry of Finance unit.
It will promote self-regulation among the licensed betting industry, though the RFB will be able to supervise operators independently of the SPA.
The legal betting market launched in Brazil on 1 January, with 14 companies currently awarded full licences, as well as another 54 authorised on a provisional basis.
The RFB and SPA will share their respective data and experiences to help identify potential illegal activities of unlicensed operators. Especially those involved in financial crimes, including money laundering.
The group will also prepare a proposal for a compliance programme that will help standardise tax obligations operators applying for a local licence.
Additionally, it will propose joint action to support the inspection work of Sufis, while also aiming to create a channel to share relevant information.
Concerns over betting tax collection from foreign operators
In September last year, RFB special secretary Barreirinhas expressed concerns over taxing international companies not based in Brazil.
In an appearance at the parliamentary inquiry commission (CPI) on match-fixing, Barreirinhas emphasised the difficulties associated with cross-border service provisions and the varying taxation rules across countries.
But Normative Ordinance 827 has dictated that international companies must be supported by a local entity, which must be at least 20% owned by a Brazilian company or investor. Licensed operators must also have a headquarters registered in Brazil.
