SPLIT PAYMENT FROM THE PERSPECTIVE OF LAW AND ECONOMICS: EFFICIENCY AND RISKS FOR BUSINESSES AND THE TAX AUTHORITIES

Abstract

This study examines the future implementation of the split payment mechanism, scheduled for 2027 under Constitutional Amendment No. 132/2023, from the perspective of Law and Economics. The research is guided by the following question: to what extent is the implementation of the split payment mechanism economically efficient within the Brazilian legal system, considering its impacts on tax collection and corporate liquidity? The central hypothesis sustains that, although the mechanism may enhance tax collection efficiency and reduce fiscal non-compliance, it also generates significant negative externalities, particularly concerning liquidity constraints, increased compliance costs, and potential effects on business continuity. The study adopts a hypothetical-deductive method, with a qualitative and exploratory approach, grounded in bibliographic review and an interdisciplinary analysis involving Tax Law, Corporate Law, international experiences, and Law and Economics theory. The relevance of the topic lies in assessing transaction costs, economic incentives, and distributive effects arising from an unprecedented model in the Brazilian tax system. The findings indicate that, while the split payment mechanism appears promising as an anti-evasion tool, its implementation requires careful institutional design to ensure that gains in tax efficiency do not undermine corporate sustainability and market equilibrium.