Amendment 3 And The Social Security Authority’s Power To Determine Employment Status

On March 16, 2007, Law 11,457 (the "Super Revenue" Law, as it is commonly referred to) was published, creating the Federal Revenue Service of Brazil (Receita Federal do Brasil) by uniting the taxes and contributions administered by the former Federal Revenue Service (Receita Federal) with collection of contributions owed to the National Social Security Institute (Instituto Nacional de Seguro Social – INSS). While Law 11,457 was being debated, the Federal Senate proposed Amendment 3, under which the social security agents could not make determinations as to the employment status of workers in the course of audits. This prerogative would fall within the exclusive jurisdiction of the courts, according to the text of the amendment.