Postponement of the Statement of Brazilian Investments Abroad by the Central Bank
(VOLTAR)Marcos Castro de Andrade MelloLawyer specialized in M&A, member of the Law Firm Fraga, Bekierman et Pacheco Neto Advogados, in São Paulo/SP.
The Brazilian Central Bank has recently postponed the term for individuals and companies domiciled or established in Brazil to file the Statement of Brazilian Investments Abroad. The former term of February 28th, 2011, is now extended to March 31st, 2011. Therefore, all individuals and companies domiciled or established in Brazil holding by December 31st, 2010 assets, equity and credits outside Brazil in the total amount equal or superior to US$100,000.00 (or its equivalent in other currencies), must disclose such properties to the Central Bank until March 31st, 2011.
If the individuals or companies fail to disclose the information required by the Central Bank of Brazil, they will be subject to fines which may range from 1% to 10% of the amount held abroad, according to the nature of the failure (incomplete information, delivery of the statement after the expiration date, false information, etc.).