Big Brother is starting from the IRS.

January has arrived, and with it the expectation for the beginning of another season of the Big Brother Brazilmillions of Brazilians are ready to follow the intrigues, strategies and movements of the confined in a house full of cameras. But what many may not know is that, meanwhile, another type of “Big Brother” is already underway not on television, but behind the scenes of Brazilian tax enforcement. e-financial, the IRS is turning the tax system into a real reality show of finance.

If in the most watched house in Brazil the cameras capture every detail of the routine of the participants, in the “Big Brother of the” Revenue, the attentive look is focused on each financial movement of the taxpayers. And with the expansion of the range of information collected, now including the transaction data made via Pix, the IRS intensifies its presence as “director” of this invisible reality, where editing can take entrepreneurs and microentrepreneurs to the “paredon” of the fine mesh.

Get ready to understand how this fiscal reality works, what the rules of the game are, and how entrepreneurs and MEIs can avoid elimination, after all, in the “Big Brother of Receita”, playing within the rules is not just a choice 'IS a matter of financial survival.

What is e-Finance?

Established in 2015, e-Financeira is a system by which financial institutions report to the IRS detailed information about their clients' transactions. Previously, this data sharing already occurred, but from january 2025, the range of information will be expanded, including:

• Transactions via Pix: The instant payment method that conquered the country is now under the radar of the tax authorities.
• Credit card transactions: Data that was previously collected by the Credit Card Operations Statement (Decred) will be incorporated into the e-Financeira, with Decred being discontinued as of January 2025.
• Payment institutions: Fintechs and other digital payment platforms are also required to report information.

Impact on entrepreneurs and MEIs

Just like in the BBB, where participants are constantly observed, the entrepreneurs and especially the Individual Microentrepreneurs (MEIs) they must be aware of their financial movements.The IRS has intensified the inspection, and those who do not regularize their pending may face serious consequences, such as the exclusion of the Simple National.

In October 2024, Revenue notified more than 1.8 million Simples Nacional debtors, including approximately 1.21 million MEIs with tax pending. These taxpayers were alerted to the need for regularization to avoid exclusion from the regime as of January 1, 2025.

The exclusion of Simples Nacional implies the loss of tax benefits and the obligation to comply with more complex tax obligations, such as the calculation of taxes for real or presumed profit.In addition, the CNPJ of MEI can be rendered unfit, making it impossible to issue invoices and resulting in the cancellation of permits.

Lessons from BBB for the business world

1. Total transparency: At the BBB, there is no hiding the shares; in the tax world, transparency is equally crucial. Keep your tax obligations up to date to avoid unpleasant surprises.
2. Team play: Just as alliances are formed in reality, having a competent accounting team is essential to navigate the tax complexities.
3. Avoid “paredam”: In the BBB, the seawall is feared; in the business universe, falling into the fine mesh of Revenue can be equally worrying. Regulate your pending issues and stay informed about tax obligations.

While millions follow Big Brother Brazil, the IRS conducts its own fiscal “reality show”, expanding monitoring on financial transactions. Entrepreneurs and MEIs must be aware of their obligations not to be “eliminated” of the tax game.

Remember: in the Big Brother of Recipe, the public does not vote, but the consequences are real.