Unconstitutionality and tax avoidance: amazonian self-sufficiency requirements and the failure of the necessity test under the BEPS framework

Abstract

The Amazon Regime, in its functional degeneration, has facilitated the erosion of the tax base; however, the imposition of a 100% territoriality requirement constitutes a disproportionate measure.

While the Bill seeks to address tax avoidance and the regressivity of tax expenditures by demanding productive self-sufficiency in a region characterized by geographic isolation and infrastructural deficiencies –factors expressly acknowledged in the legislative initiative itself–, the rule ultimately penalizes legitimate investment and deepens extra-regional economic disarticulation.