Brazilian Supreme Court refuses to turn blind eye to corruption

Laws in Brazil are meant to be followed by everyone residing in this country or any executives developing transactions between Brazilian businesses. This includes those holding office within the federal government. Foreign Affairs outlined in an article how the court system in Brazil has undertaken a new approach to handling political corruption, without giving them more power than other citizens when it comes to following the law of the land.

This past December, the Supreme Court of the nation sentenced chief-of-staff​ José Dirceu to 10 years in prison for taking part in a scheme that included bribing congressmen to vote alongside the rest of the government. Also, 25 co-conspirators wereconvicted of participating in the crime, which expanded to affecting banks, advertising agencies and other officials.

The court also stated that embezzlement practices led to the loss of $150 million in public funds. While the trial lasted for four months, the takeaway from the entire process is that everyone residing and partaking in business dealings within Brazil are required to follow the laws established in this country.

“The law is the same for everyone, not just chicken thieves or poor kids in the slum,” Justice Joaquim Barbosa, the head of the Brazilian judiciary, said during the trial proceedings.

Blatant corruption within political circles may no longer be tolerated by the country’s highest court. However, it will take time to see whether this new mindset will be sustainable in the long term, the news source explains. Since judicial figures are interchanged after serving their term, there is no telling for sure whether all future court appointees will share the same point of view.

Businesses that need assistance with following the laws in Brazil should contact a Brazilian law firm.

Foreign Companies

Foreign companies investing in Brazilian businesses would be wise to speak with a Brazilian lawyer to ensure they are following all business laws in Brazil when undergoing mergers, acquisitions, and all other transactions within this particular nation.

The environmental laws in this country, for example, are followed strictly by farmers and food manufacturers, or else government agencies may bring on financial penalties or lawsuits against an organization. However, with proper legal assistance, any foreign business should be able to succeed in developing new sites or transactions within Brazil.

More corporations have brought together business dealings within this country while the total immigration rates for Brazil have also been rising. The Rio Times reported that the growth in immigrants moving to Brazil indicates that there are a variety of career opportunities within the country. Also, the global economic recession has brought forth more need for individuals to move toward new possibilities, such as the positions available in Brazil.

The pursuit of legal residency in Brazil has grown by 10 percent since 2011, a national registry reported. Over the last decade, the number of people searching to reside in this country has grown ten times – rising from​22,418 to 1,466,584 people. The Amnesty Law was also previously passed, which grants illegal immigrants a path toward residency in two years’ time. In general, the booming Brazilian oil industry has brought more workers to the nation.

“Brazil is the new hub of global petroleum. Anyone who works in the field has to be here now,” Joe Lochridge, a commercial director of an American company that drills and exports Brazilian oil, told reporters.

With the help of a Brazilian law firm, business owners can take the advantage of immigrant workers in Brazil seeking employment and develop new factories or sites for further development of their company.

Assistance for Asset Valuation

Businesses based in the United States that wish to invest in resources located in Brazil will have to consider all of their financial capabilities before attempting to make a transaction with any other company. Undertaking a financial risk assessment is valued, especially since tax laws in Brazil contrast those of the United States.

Asset valuation is another important concept to undertake before committing to any contracts or transactions. The value of real estate, for example, can vary tremendously based on different factors, such as location and time period. Different valuation models are also used to determine the worth of patents, copyrights, trade secrets, consumer relations or software products.

Another important aspect of financial management processes in Brazil is to consider the price of inflation. Bloomberg reported that consumer prices and inflation rose in December within this country farther than economists predicted. With the government attempting to improve economic growth, prices rose for many consumer products.

Costs increased 0.79 percent in December and annual inflation grew to 5.84 percent, which is a significant rise for Brazil. Even though the federal government has brought forth many changes and attempts at reviving the economy, so far its efforts have proved to be fruitless.

“While Brazil’s economy is expected to grow about 3 percent in 2013, economists have warned that ongoing inflationary pressures could limit the central bank’s ability to use interest rates to boost activity should the economy stumble again this year,” Nasdaq reported. “Brazil’s unemployment rate also remains at record lows, forcing companies to boost wages to attract and retain workers.”

Companies that need additional assistance with handling the legal aspects of financial management in Brazil should contact Brazilian lawyers who have wide experience representing foreign businesses.

Scandals in Brazil

Businesses that are attempting to develop new mergers, acquisitions or other transactions in Brazil should be aware of political scandals plaguing the country and which laws in Brazil contrast with those of the United States.

The Economist reported that a scheme for buying votes in the Brazilian Congress led to 25 individuals being found guilty of corruption, money-laundering and improper use of public funds. Many of these were sent to prison and given large fines.

The chief of staff José Dirceu was sentenced to 11 years in prison while Marcos Valério, an advertising professional in on the scheme, was given a 40-year jail sentence.

“The mensalão [scheme] is a striking symbol of this change,” Carlos Melo, a political scientist at business school Insper, told the news source. “But it started some time ago.”

The clean record law has brought forth more legislation for judges to consider in their courtrooms in order to keep politicians from committing crimes. This law, which was initiated in 2010, bans anyone who has committed vote-buying, illicit campaign financing and other forbidden procedures from being elected to office.

Investors attempting to make contact with Brazilian companies, however, may not fare well, based on the tough economic conditions present in the country, according to the New York Times.

New regulations to reduce consumer spending brought forth more economic challenges for different sectors, such as electricity providers and retail banks. New taxes also weakened the currency in 2012 and led to lower profit outlooks for a number of companies in Brazil.

Companies that are attempting to develop transactions on a global scale will need to learn about the business laws in Brazil. With the help of a Brazilian law firm, foreign businesses will be able to meet all of their interests.