Cooperative Compliance: SWOT Analysis for the Brazilian CONFIA Program

35 Pages Posted: 13 Oct 2021

See all articles by Antonio Lopo Martinez

Antonio Lopo Martinez

University of Coimbra; University of Salamanca

Date Written: September 8, 2021


Cooperative Compliance (CC) ensures that the relationship between the taxpayer-tax administration is based on transparency, mutual trust, and preventive actions of assistance and collaboration. These three foundations are formalized in seven characteristics, two of which, transparency and disclosure, apply to taxpayers, and the remaining five (commercial awareness, fairness, proportionality, transparency, and responsiveness) apply to the tax administration. This technological article discusses the CC concepts, requirements, advantages, tax control framework (TCF), tax risk, and governances issues. Subsequently, some Brazilian initiatives will be appreciated, highlighting the exposure of the CONFIA proposal as a CC program of the Brazilian Revenue Service (RFB). Using a SWOT analysis based on international experiences will discuss strengths, weaknesses, opportunities, and threats points for success in implementing the CONFIA program. Additionally, some recommendations to ensure an environment of increasing cooperation in the tax field will be provided to reduce the tax litigation, a chronic problem of the Brazilian tax system. Cooperation between taxpayers and tax administration should be based on the responsibility of both, supported by mutual trust, which does not tolerate opportunistic behavior on both sides of the tax relationship.

Keywords: Cooperative Compliance, Tax Administration, Taxpayer, Tax advisor, Trust.

JEL Classification: k34

Suggested Citation

Martinez, Antonio Lopo and Martinez, Antonio Lopo, Cooperative Compliance: SWOT Analysis for the Brazilian CONFIA Program (September 8, 2021). Available at SSRN: or

Antonio Lopo Martinez (Contact Author)

University of Coimbra ( email )

Pátio das Escolas

University of Salamanca ( email )

Campus Miguel de Unamuno
Salamanca, Salamanca 23007

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