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the interest of collection of tax. The taxable event which gives
rise to the tax on income is the economic or legal availability of
such income.
Under Article 45 of the National Tax Code, the person entitled
to "the economic or legal availability of income" is called the
contribuente, or taxpayer. However, the status of contribuente can
be attributed to the holder of assets producing the income or
earnings. In addition, the source making payment of the income can
be liable for the tax if the source is required by law to withhold
and pay such tax to the Brazilian Treasury.
Under Article 121 of the National Tax Code, the person
obligated to make the payment of tax is called the "passive
subject" of the principal obligation. The passive subject of the
principal obligation is either: (1) The contribuente, when he has
a direct and personal relationship with the taxable event or (2)
the responsavel (responsible person or person liable) when, without
having the status of contribuente, he has an obligation to pay the
tax by an express provision of law.
Article 122 of the National Tax Code defines the passive
subject of an accessory obligation as the person obligated to
perform the duties which make up the accessory obligation.
Article 123 of the National Tax Code specifies that, except as
otherwise provided by law, private agreements concerning the
liability to pay taxes are not binding on the public treasury.
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