Brazil to Modify Disclosure Procedure

According to Decree No. 10.571 of December 9, 2020 that will enter into force on December 9, 2021, declarations will be submitted and processed only in digital format through a system managed by the Comptroller General of Brazil.

At the same time, officials may be allowed not to submit assets declarations. Instead, they can provide electronic authorisation to access their annual income tax declarations and individual tax returns, which, however, does not exempt declarants from the obligation to clarify specific data on their assets if relevant information is not provided in the tax documents.

Declarations must be submitted on an annual basis as well as upon assumption of office or election, return to office after suspension and dismissal. The conflicts of interest declarations must include the following information:

on family members (spouses, partners, ascendant and descendant relatives and in-laws up to the third degree of affinity), who are engaged in activities that may potentially lead to a conflict of interest;
on private activities undertaken in the previous calendar year;
on situations related to the assets owned that can give rise to a conflict of interest.

The control over the submission of declarations will be exercised by the Comptroller General and the Public Ethics Commission; the responsibilities to manage the database of declarations, their analysis and initiation of proceedings in the event that evidence on illicit enrichment emerges are entrusted to the Comptroller General.

If an official fails to submit the declaration or submits knowingly false information, he/she can be subject to administrative and, if necessary, ethical proceedings.

The provisions of the Decree are applied to all civil servants of direct and indirect federal public administration, and to employees, managers of and advisors to State-owned enterprises, including those independent of the National Treasury in terms of coverage of the staff costs or costs in general. Furthermore, ministers, presidents, vice-presidents and directors of public foundations, public enterprises or mixed capital companies, individuals appointed or elected to the positions of grade 5 or higher than the Senior Direction and Counselling Group (Direção e Assessoramento Superior, DAS) must give notice of their conflicts of interest.