Joaquim Barbosa

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Joaquim Barbosa

Chief justice, Supreme Federal Court of Brazil

Joaquim Barbosa

Brazilian taxpayers and investors the world over had all eyes on the Supreme Federal Court in April, as it decided a dispute over the country’s controlled foreign company (CFC) rules which had lasted more than a decade. The case was Direct Action for Declaration of Unconstitutionality no. 2588, brought by the National Confederation of Industries, and dealt with the constitutionality of Brazil’s CFC rules.

Minister Barbosa is the chief justice of the Supreme Federal Court and brought his own interpretation into the judgment.

The taxpayers were arguing that Article 74 of Brazilian Provisional Measure 2,158-34/2001 (the CFC rules), which says that profits earned by controlled and associated companies abroad should be considered available for the Brazilian controller or associated company at the date on the balance sheet in which they have been assessed, was unconstitutional. They argued that the rules do not properly reflect the point at which non-distributed profits of foreign subsidiaries are made available to Brazilian shareholders, and so disregard the constitutional concept of income for taxation purposes.

In an earlier consideration of the issue, which resulted in an incomplete judgment with only nine of the eleven justices issuing decisions, Barbosa held that the action was well-founded in part. According to Barbosa, when interpreted in accordance with the Federal Constitution of 1988, Article 74 may only apply to the taxation of legal entities domiciled in Brazil whose controlled or related companies are located in tax havens.

And in April when the case was finally concluded, it was Barbosa’s interpretation that was adopted by a majority of six.

The Global Tax 50 2013

« Previous

Danny Alexander

View the complete list

Next »

Piet Battiau

more across site & shared bottom lb ros

More from across our site

Countries which care about fair taxation of tech multinationals and equitable global distribution of wealth should back the UN’s tax framework, writes economist Abdelmalek Riad
The cuts disproportionately affected staff in certain positions, the report also found; in other news, MHA announced the €24m acquisition of Baker Tilly South East Europe
The plan aims to improve the efficiency, transparency, and effectiveness of direct tax administration in India
Meanwhile, South Africa’s finance minister has accepted a court decision on suspending a VAT increase and US President Donald Trump mulls a 100% tariff on foreign films
Jaime Carey speaks about the benefits of his tax background, DEI values, the use of AI for a smarter legal practice, and other priorities that will define his presidency
Historically low levels of attrition over consecutive years made a ‘difficult decision’ necessary, PwC has reportedly said
WTS Global is also vetting new potential member firms in Algeria, Cote D’Ivoire and Benin, Kelly Mgbor tells ITR in an exclusive interview
The scope of qualifying pillar two tax credits could reportedly be broadened; in other news, hundreds of IRS appeals staff are to resign
For many taxpayers, the prospect of long-term certainty that a bilateral APA offers can override concerns about time, cost and confidentiality
Levine, who served under the Joe Biden administration, led the US’s negotiations on the OECD’s two-pillar solution
Gift this article