Free competition: how tax evasion and tax competition distort markets – the Brazilian perspective

ABSTRACT The article discusses how tax evasion and tax competition jeopardise free competition between companies. Focusing on the Brazilian experience, it shows that the country is not a major player in international tax competition, but that there is a ferocious tax war between Brazilian States and Municipalities. The article describes the two main examples of this internal tax competition and presents some of the still unresolved juridical problems it causes.…