Brazilian Amnesty: Possible Criminal Charges for Some Participants
The Amnesty Law in Brazil, also known as Repatriation Program, ended July 31, 2017. The program allowed Brazilians taxpayers to repatriate undeclared offshore assets without prosecution, by paying a penalty tax.
However, after the close of the amnesty extension, the Brazilian Internal Revenue announced it will examine the source of the repatriated funds rigidly. It plans to focus on taxpayers whose income does not match assets that have been declared, and the goal is to take criminal action against taxpayers whose assets have an illegal origin and/or funds originating from corrupt activities.
The Brazilian Internal Revenue is counting on international cooperation to cross-reference and confirm newly reported assets and income. Brazilian authorities claim that the Repatriation Law exempts from further inquiries and criminal charges only those assets obtained from legal activities, and therefore individuals who declared illicit wealth can be held duly accountable.