TRANSNATIONAL COMPLIANCE STRATEGIES: HARMONIZING TAX, ENVIRONMENTAL, AND CONTRACTUAL REQUIREMENTS IN CROSS-BORDER TRANSACTIONS
This article analyzes transnational compliance strategies to harmonize tax, environmental, and contractual requirements in cross-border transactions. It starts from the premise that compliance involves complying with and demonstrating compliance through governance, controls, and auditable evidence. It adopts the notion of a regulatory triad of tax, environmental, and contractual regulations as an interdependent system, in which the contract structures the international economic fact and conditions the allocation of risks and results, while environmental obligations and liabilities associated with chemicals, waste, and emissions affect compliance costs, operational continuity, and decisions in corporate transactions. On the tax front, we discuss Brazil's convergence with the arm's length principle in transfer pricing and its impacts on economic substance, functional analysis, and documentation. On the environmental axis, emphasis is placed on the centrality of responsibility and due diligence for mitigating liabilities and risks in global chains and in mergers and acquisitions, including the strengthening of chemical controls and traceability. On the contractual axis, instruments of predictability and enforcement mechanisms are highlighted, as well as limits to private autonomy in the face of mandatory rules and public order. It is concluded that three-dimensional harmonization reduces regulatory risk and transaction costs by minimizing documentary inconsistencies, increasing predictability, and strengthening the defensibility of corporate decisions, recommending compliance by design with integrated due diligence, harmonized contracts, playbooks, and continuous monitoring.
TRANSNATIONAL COMPLIANCE STRATEGIES: HARMONIZING TAX, ENVIRONMENTAL, AND CONTRACTUAL REQUIREMENTS IN CROSS-BORDER TRANSACTIONS
-
DOI: https://doi.org/10.22533/at.ed.8208112614018
-
Palavras-chave: Compliance; cross-border operations; ESG; due diligence; enforcement.
-
Keywords: Compliance; cross-border operations; ESG; due diligence; enforcement.
-
Abstract:
This article analyzes transnational compliance strategies to harmonize tax, environmental, and contractual requirements in cross-border transactions. It starts from the premise that compliance involves complying with and demonstrating compliance through governance, controls, and auditable evidence. It adopts the notion of a regulatory triad of tax, environmental, and contractual regulations as an interdependent system, in which the contract structures the international economic fact and conditions the allocation of risks and results, while environmental obligations and liabilities associated with chemicals, waste, and emissions affect compliance costs, operational continuity, and decisions in corporate transactions. On the tax front, we discuss Brazil's convergence with the arm's length principle in transfer pricing and its impacts on economic substance, functional analysis, and documentation. On the environmental axis, emphasis is placed on the centrality of responsibility and due diligence for mitigating liabilities and risks in global chains and in mergers and acquisitions, including the strengthening of chemical controls and traceability. On the contractual axis, instruments of predictability and enforcement mechanisms are highlighted, as well as limits to private autonomy in the face of mandatory rules and public order. It is concluded that three-dimensional harmonization reduces regulatory risk and transaction costs by minimizing documentary inconsistencies, increasing predictability, and strengthening the defensibility of corporate decisions, recommending compliance by design with integrated due diligence, harmonized contracts, playbooks, and continuous monitoring.
- WILTON MAGÁRIO JUNIOR
