MercoPress. South Atlantic News Agency

Brazilian amnesty program for overseas funds collects US$ 15.8bn

The extra revenue collected by the government would help the administration of President Michel Temer meet this year’s fiscal target

The Brazilian government collected 50.9 billion Reais, equivalent to US$15.8 billion in taxes and fines under an amnesty program offered to individuals and corporations with undeclared but legitimate funds parked overseas, the Finance Ministry said on Tuesday.

 By the program’s Monday deadline, 25,114 individuals and firms agreed to pay a 15% income tax and a fine equal to taxes paid, lower than they would have paid without the program, in exchange for immunity from potential prosecution for tax evasion and other charges, the ministry said.

A total of 169.9 billion Reais in undeclared offshore assets were reported under the amnesty program, the ministry said. Under the program, taxpayers could also avoid paying interests on their overdue taxes.

The extra revenue collected by the government would help the administration of President Michel Temer meet this year’s fiscal target amid a swelling budget gap and debt load.

The government’s target for this year is to have a primary deficit, which excludes debt payments, of 170.5 billion Reais. As of September, the deficit was 85.5 billion Reais.

Brazil’s central bank said Tuesday it counted an inflow from abroad of US$10 billion through the end of October as a result of the amnesty. Some people used money already in Brazil to pay their taxes and fines, resulting in some of the difference between the amount collected by the government and the amount brought home.