TAXATION AT SOURCE AND ITS EFFECTS ON INCOME TAX

Abstract

The article analyzes withholding taxation in Brazil, highlighting its historical evolution, from Roman law to its consolidation in the Brazilian tax system, and its importance for efficient collection. It examines the concept of income, emphasizing the need for increased wealth and constitutional principles such as tax capacity and equality. It discusses the types of taxation (advance and final), pointing out benefits such as reduced tax evasion, but also criticisms, such as the lack of monetary correction and delay in the refund of amounts unduly withheld. It criticizes the system from a social perspective for disregarding tax capacity, negatively impacting tax justice. It concludes by suggesting modernization and simplification for greater equity and efficiency.