Is it time to introduce an Irish version of the Brazilian “Nota fiscal” to combat the black economy and plug the hole in our public finances?
In Sao Paulo State in Brazil, if a trader does not provide customers with a nota fiscal, he will be considered to be a criminal.
Strong stuff….but read on
Certain economic sectors throughout São Paulo were identified as needing help in order to decrease both tax evasion and unfair competition. After studies were completed, a project was developed to incentivise consumers to require the issuance of a Nota Fiscal (billing document) at the time of purchase.
Legislation introduced in 2007 provides for rebates and credits against ICMS tax paid (the equivalent of VAT) in the State of São Paulo.
To participate, the consumer must request the tax document at the time of purchase and provide their CPF or CNPJ (taxpayer identification numbers) to have a right to the credits and qualify for possible rewards. So that the credits are generated, commercial establishments must complete the electronic registration of the tax document in the Nota Fiscal Paulista system. Then the Finance Department of the State of São Paulo system completes the calculation of the appropriate entitled credit.
The program's objectives were to:
1. Incentivise the population to request a tax invoice for every transaction. Previously, consumers did not feel compelled to ask for a Nota Fiscal, since they received no direct benefit or gain.
2. Reduce the prevalence of the “black economy” and sale of smuggled and illicit goods
3. Generally reduce tax evasion.
Benefits to the consumer are in the form of a rebate of tax through a combination of the following:
a. Transfer to a bank account
b. Transfer to another person e.g. family member
c. Credits against other taxes e.g. income taxes
d. Charitable donation
In addition a proportion of the tax collected is reserved in a “lottery” and distributed in prizes to taxpayers as well as donated to charity. (For example money has been credited to the famous Cancer Hospital of Barretos to build a molecular biology laboratory for cancer research.
The Nota Fiscal Paulista (NFP) project would not have been possible without the intensive use of technology.
Since the project targets public citizens, NFP is Internet-based for easy accessibility by citizens. Because of this, one of its requirements is high availability (24 hours a day, seven days a week), with the ability to support a large number of simultaneous connections. A peak of approximately 12,000 simultaneously active users has already been observed. To access the site, the consumer logs in and can consult the documents issued in their name (within a time frame of up to five years), donate received credits, request deposits in a current account, register claims against suppliers (generally for not registering tax documents in the system) and view tickets and awards received in the scope of raffles organized by NFP.
Credit of up to 30% of tax paid is not unusual.
Would it work here?
Could Irish citizens get used to quoting their PPS number every time they buy a takeaway pizza, the weekly groceries or a pair of shoes or a pint of Guinness? Would your window cleaner give you a “nota fiscal”?
Is our so called smart economy ready for such an initiative?
It has been successful in Brazil and could work here if we wanted.
Does your business have a mission statement?
If it does, is it fit for purpose?If it doesn’t, then you need to prepare one, and in doing so you will be articulating the vision of your enterprise to yourself and to your customers and staff.
In either case you will be forced to stand back and think about your business in some considerable detail. Standing “outside” the business in a detached and objective way is very important in preparing a formal communication tool that defines the purpose of the venture and what it aims to achieve.
The mission statement defines what business you are in, what are your aims, and how you are going to achieve these.
It is not an easy exercise but it is a very worthwhile task which defines your business and tells the world what you are about.
Here are some bullet points to help:- A mission statement helps refine and develop the entrepreneurial vision and to then communicate that to all stakeholders in the business.
- A mission statement will define the type of opportunities that are to be exploited by the business.
- A mission statement communicates to customers, staff and potential investors.
- A mission statement provides a constant point of reference.
- What business are we in? What products and services do we offer?
- Who are our customers? What is the extent of our marketplace?
- What are we offering our customers? What needs are we fulfilling?
- What is our unique selling point or innovation?
- What aspirations and values does the business have?
The mission statement must be easily related to the business and not sitting on another plane out of reach from reality. Like the business plan it must be referred to constantly, and performance benchmarked against it.
Here are some examples of mission statements, without comment or criticism. Just review them and make up your own mind about their quality or otherwise, measured against the guide above.
Dell
“Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of:
- Highest quality
- Leading technology
- Competitive pricing
- Individual and company accountability
- Best-in-class service and support
- Flexible customization capability
- Superior corporate citizenship
- Financial stability”
Harrods
To be the number one department store in the world for luxury branded merchandise maintaining an unprecedented level of retail standards, expertise and 
profitability.
Through a combination of product, innovation and eccentricity, we aim to provide every customer with a truly unforgettable experience in our quintessentially British environment.
F.A.O. Schwarz
Schwarz’s mission statement today is,
“To be a source of wonder and a trusted resource for each new generation, a challenging and nurturing environment for all our employees, and a relentless supporter of quality and innovation in the life of every child. As the leading specialty toy retailer, F.A.O. Schwarz is committed to discovering and bringing to you offerings from around
the world, all with the following characteristics: Quality, Originality, Design Integrity, Health Safety and Environment, Fun”
And their next door neighbour on Fifth Avenue NewYork,
Apple
Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
IKEA
We shall offer a wide range of home furnishings, items of good design and function, at prices so low that the majority of people can afford them
The Body Shop
Make compassion, care, harmony and trust the foundation stones of business. Fall in love with new ideas.
And finally
Cairns Funeral Directors
To always put you first
To provide the most meaningful, compassionate and memorable funeral service at an affordable cost to ensure that you benefit from the service we give.