Brazilian Minister Durigan signals crackdown on abusive 'pejotização' practices

Minister of Institutional Relations Alexandre Padilha's deputy, Durigan, clarified that the government intends to target the misuse of 'pejotização'—the practice of hiring individuals as legal entities to avoid labor taxes—specifically when used to evade social security contributions. The statement distinguishes between legitimate entrepreneurial flexibility and labor fraud, though the specific regulatory or enforcement mechanisms remain undefined.