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January 11, 2023
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SP: city halls are warned about the risk of not complying with the Tax Law

Preview of tax burden rises to 33.9% of GDP in 2021

The State Court of Auditors (TCE) of São Paulo reported that it issued alerts due to the risk of non-compliance with the Fiscal Responsibility Law (LRF) to 89% of the 644 city halls inspected by the body. Alerts are based on accounting analyzes of income and expenditure data for the fifth quarter of 2022.SP: city halls are warned about the risk of not complying with the Tax Law

According to the TCE, the analyzes pointed to evidence of irregularities in budget management in 568 municipalities and collections lower than planned in 79. The survey also revealed that 42 city halls, nine municipal councils and 11 municipal entities failed to send the accounting balance sheet, as provided for in the ECA’s schedule of obligations.

“Failure to present the accounts constitutes an act of administrative impropriety and a crime of responsibility, with the person responsible subject to various penalties, including the payment of a fine, under the terms of Complementary Law No. 709, of 1993”, highlights a court note.

The complete list of municipalities, town halls and municipal entities that were alerted by the TCE, or failed to send the balance sheet, can be seen on here.

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