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Unformatted text preview: Brazil, Policy and Research Staff Report". No.
INU37. The World Bank: Washington, D.C. sector. It is a market city, which also services the neighboring towns. According to 1995
census 74 percent of the labor force is in the services and trade sector, most of these
activities are concentrated along the main spine of the city. Despite the base, the collection
from business tax is only 3 percent of the total local income compared to the national
average of 20%. Examination of business tax administration reveals tax assessment and
problems associated with it as key area of concern. 4.5 Problems and Limitations of Business Tax
Assessment of Gross Receipts
The major problem lies in the estimation of gross receipts, which is neither easy nor
accurate. The collectors are dependent on assessing self-declaration of gross receipts by
businessmen. These are suspected of often being under reported, and the collectors have
little confidence and incentive to challenge the under reporting. In practice, the only
information available to compare the accuracy of self-declared amount is the gross receipt
amount in the prev...
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- Winter '13