Lag table helps explain record of statements

The lack of correction of the IRPF table (Income Tax for Individuals) meant that more people had to declare the tax and contributed to the record number of declarations received by the Federal Revenue in 2022, according to an assessment by Unafisco (National Association of Auditors). tax authorities) and an expert consulted by the UOL. In all, just over 36.2 million declarations were delivered by May 31, the last day of the deadline, above the initial expectation of 34.1 million.

According to unafiscothe IR table accumulates a lag of more than 134% from 1996 to 2021. There has been no correction since 2015. It is estimated that this takes R$ 149 billion more from the population than it would have if the numbers were fully adjusted for inflation since 1996 .

Under current rules, those who earn up to BRL 1,903.98 are exempt. If the table had been adjusted for inflation, the exemption range would have risen to R$4,465. Last year alone, inflation was over 10%.

“This vertiginous increase [no número de declarações] it is mainly due to the non-correction of the table, which is lagged by 134.53%. It is evident that this exponential growth in the number of deponents stems from the fact that the mass of taxpayers, particularly from the ‘middle-almost-poor’ class, have had a small salary increase and have been forced to declare, which is a huge injustice” , says the entity in a note.

O UOL also asked the IRS what explains the large number of declarations delivered this year and is still awaiting a return.

Bolsonaro promised to correct table, but did not fulfill

President Jair Bolsonaro (PL) is approaching the end of his term without fulfilling the promise, made in the election campaign and reiterated during the government, to correct the IR table. During the campaign, in 2018, Bolsonaro had promised to raise the exemption range to five minimum wages, the equivalent of R$6,060 today.

The government even sent to Congress, as part of the tax reform, an increase in the exemption range to up to R$2,500 per month, but the reform stalled in the Senate.

There was an expectation that the government could grant the correction via Provisional Measure (MP), as other presidents did, but this did not happen.

Readjustments intensify the lag

Bianca Xavier, professor of Tax Law at FGV (Fundação Getúlio Vargas) in Rio de Janeiro, makes an assessment similar to that of Unafisco. She recalls that, every year, the unions negotiate the so-called collective bargaining agreement, a collective salary readjustment. This increase, even if small, ends up causing more people to be forced to contribute over time — hence the record number of declarations made.

“Every year, when this table is not updated, the IR is taking more and more portions of the population that until then were exempt”, he explains. “Year by year, the unions make agreements to define what the salary increase will be in that period, as a form of compensation for inflation. So every year there is a small increase. If you take that in ten years, that person who has three, four years ago, it was exempt, today it becomes a taxpayer.”

It’s not even that people are earning much more. They are earning a little more, but because of this inflationary loss. So the lag of the table makes many people who would be exempt have to declare. We just can’t estimate how much of this percentage is “the fault” of the lag, but it influences.
Bianca Xavier, from FGV Direito Rio

Ease of declaring

Xavier still cites the facility to declare as another reason that helps explain the record number of declarations received by the IRS. The fact that the taxpayer can do the entire process by cell phone or tablet ends up encouraging even those who are exempt to make the declaration, according to the professor.

“Because you see: those who are not obliged to do so are not prohibited either. With the ease, sometimes that taxpayer who would not make the declaration now starts doing it”, he says, citing the pre-filled declaration as an example of ease.

“Apart from the fact that people are more afraid of having a problem with the tax authorities. How many times do I hear from students: ‘My father never declared, so-and-so never declared’… The inspection mechanisms are more efficient.”

What does the Revenue say?

O UOL contacted the Internal Revenue Service to ask if the reasons cited by Unafisco and the FGV professor explain, in fact, the large number of declarations delivered this year. The report awaits a response.

In a note published on its official website this Wednesday morning, the Revenue disclosed only that 36,322,912 IRPF statements were received. The expectation was that 34.1 million statements would be sent.

“From now on, anyone who was obliged to deliver the declaration and did not do so by the end of the term will be subject to a fine. The amount of the fine is 1% per month, on the amount of income tax due, limited to 20 % of the amount of income tax. The minimum amount of the fine is R$ 165.74”, he said.