Parliamentary inquiry to consider lifting banking and tax secrecy for online betting companies in Brazil
In the first meeting of the year, the Parliamentary Inquiry Commission (CPI) regarding betting will decide on the lifting of banking and tax confidentiality for nearly all online betting companies authorized by the federal government.
According to the Senate News Agency this involves 97 requests from Senator Marcos Rogério presented in early December, which include 71 of the 78 companies currently authorized by the Ministry of Finance. The documents request, among other data, that the Financial Activities Control Council (Coaf) send the CPI financial intelligence reports containing “consistent information” about bets, covering the period from January 1, 2020, to December 10, 2024.
Another 11 requests summon authorities from the Central Bank and the Federal Police, as well as representatives from betting companies and payment institutions. The summons makes attendance mandatory.
According to a request from Senator Izalci Lucas which authorized the invitation, the betting sector is still awaiting regulations that clarify taxation on prizes and prevent tax evasion.
“The current legislation does not clearly specify how these prizes should be taxed, which creates a loophole that allows taxes not to be efficiently collected. The Federal Revenue fears that the lack of regulatory clarity favours tax evasion and reduces potential collection,” states the document.
The commission aims to clarify the impact of digital betting on the financial health of Brazilians and investigate possible illicit activities. Established on November 12, the CPI elected Senator Dr. Hiran as president and Senator Soraya Thronicke as rapporteur. The committee has a total of 130 days to complete its work. The outcome of a CPI may include, among other things, proposals for changes in legislation and the referral of investigations to agencies responsible for criminal accountability of the accused.
