TCC 2 - Farlem Pereira de Souza

Abstract

This paper aims to investigate to what extent the ideal of tax justice is or is not enshrined in income taxation and, more specifically, on the blueprint adopted by Brazil for exemption of profits and dividends distributed by legal entities. To this end, the deductive-argumentative method and the bibliographical technique were used. Regarding the construction of the reasoning developed, firstly, direct and indirect taxes were conceptualized and delimited, making an analysis of the State's sources of collection; followed by positions of the economic and legal doctrine on tax justice and how this guides the development of thought in these two areas of knowledge; succeeded by the conceptualization, historical construction and factual application of taxation on income for both individuals and legal entities; A brief exposition is also made about the other taxes that fall directly on the income of legal entities, in order to have a broader view of the national tax burden; then, a more detailed analysis is made of the exemption of profits and dividends distributed to partners, going through its historical construction and justification, as well as the models of integration of taxation of legal entities and individuals and the most impacting studies on this institute in Brazil; and finally, a brief exposition on how some countries with more advanced economies give tax treatment to profits and dividends. Considering that profits and dividends are income from capital, the hypothesis is that the model of exemption of this type of income deforms the National Tax System and hinders the constant search for the effectiveness of the constitutional precepts. Based on these considerations, this study argues, therefore, that the choice of the effective tax burden is the most determinant factor for the taxpayer and that the model for integrating the taxation of legal entities and individuals must be thought of with strict observance of the constitutional mandates and the effective tax burden.