Clipping of news on Brazilian Culture, Law and Citizenship
08/04/2015
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Consumers should be wary of offers made by banks, as anticipation is a loan with high interest rates
This time of year (March and April), taxpayers who claim the Income Tax (IR) often receive runoff banks offers proposing the anticipation of the refund. Many people, believing they are getting a good deal, come to accept the proposal. However, the Procon of the Legislative Assembly of Minas Gerais (ALMG) warns that this type of transaction should be analyzed with caution.
"The anticipation of the refund of income tax is nothing more than a bank loan," explains Procon Assembly coordinator, Marcelo Barbosa. In other words, is granted by the charging of interest. A survey of seven major banks operating in Brazil shows that the monthly interest under a "personal loan not consigned to individuals" are in their 4.75% on average. This means an annual rate of approximately 74%.
And not only with the interest that the taxpayer should be concerned. In addition, the banks usually charge various administrative fees and there is also the incidence of taxes such as financial transaction tax (FTT), which fatten further behind. We must be careful, therefore, the call CET - Cost Effective Total, which is the real burden on the amount to be paid back to the institution.
With all this, the Procon Assembly directs that the citizen only refer to the anticipation of the refund in case of extreme necessity, as a medical emergency or to pay off debts whose interest is even greater. "Not worth using this feature to acquire luxuries or shopping they can expect. The cost is too high, "said Marcelo Barbosa.
Another risk that must be taken into account in this case is the possibility that the IR statement fall into the "fine mesh." That is, the return can delay months and even years, which will increase the disorder to the taxpayer, which may not have the money to pay the debt within the prescribed period and therefore must pay more interest.
"Ideally, the taxpayer be patient and wait for the return, because the value to be returned is adjusted by the Selic rate, which yields more than the savings," added Marcelo Barbosa. The Selic currently stands at 12.75% per annum.
Source: Procon Assembly
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This article was translated by an automatic translation system, and was therefore not reviewed by people.