One of the most profitable niches within the legal world is tax law. Besides the excellent job opportunities in the sector, lawyers who dedicate their studies to tax law will undoubtedly find great success in their professional journey.

There are several reasons for this.

The first challenge is the complexity of the Brazilian tax system. There are countless regulations (at the federal, state, and municipal levels) that need to interact with each other so that taxpayers can fulfill their obligations to the state.

Therefore, if you, as a lawyer, have been studying and updating your knowledge in tax law, you have the opportunity to understand the rules related to tax advocacy more easily, and you can build effective solutions together with your client.

The second reason for the success of legal professionals in tax law is the current scenario we are finding in the legal market.

The term "general practitioner lawyer," meaning a professional who works in all areas of law, is no longer used. That's outdated. The job market seeks outstanding professionals who specialize in their respective fields.

Therefore, if you wish to practice tax law, you already know that to achieve success and gain recognition in the field, you will need to specialize.

It's important to keep in mind that a tax lawyer's area of ​​expertise isn't limited to tax litigation. Therefore, I invite you to read this text to discover the business opportunities in tax law!

Tax Planning

I don't know if you remember, but we've already talked about tax planning here on the IDP blog.

In general terms, tax planning is a preventive act that aims to find mechanisms to reduce financial outlays related to tax payments.

In the article I wrote about tax planning, I discussed one of the most famous cases in Brazil, which is the tax planning in the case of "Sonho de Valsa" (a Brazilian chocolate brand). With the strategy adopted, the company, which was paying 5% IPI (a Brazilian tax on industrialized products), ended up with a zero rate.

Thus, in-depth knowledge of tax legislation, the structure of tax planning, and the "step-by-step" process for developing this procedure, allows the lawyer to propose effective solutions to their clients, reducing the tax burden and becoming a business partner to the client.

Tax consulting

Another highly sought-after area for legal professionals is tax consulting.

In advisory services, the lawyer does not need to be directly involved in the case. As a general rule, there is no litigation; it is a preventative procedure in which the lawyer is called upon by their client to clarify doubts regarding tax matters.

Imagine, for example, a company that is transporting goods to a branch office. The client, unsure of the need, asks about the necessity of issuing an invoice, or whether taxes need to be collected when moving these goods, among other questions.

We could even consider building a tax argument for the restitution of amounts owed to taxpayers who have paid unduly, such as in the case of PIS/Cofins credits... In short, there is no shortage of opportunities in tax law.

The study and knowledge of tax issues will support the lawyer in answering any questions from the client. This may even allow them to provide monthly legal advice to their client.

Recovery of tax credits

When we think about recovering tax credits, we are immediately reminded of tax litigation, that is, the area of ​​law in which it is discussed, in judicial proceedings, whether or not there is a duty to pay a certain tax.

In general terms, we can say that tax credit recovery is a procedure carried out with the purpose of recovering fees, taxes, and contributions that were paid by the taxpayer to the government illegally or improperly.

This is another great opportunity in tax law, because the taxpayer can be either an individual or a legal entity. Therefore, a wider range of people can benefit from the services provided by a tax lawyer.

Litigation financing

Within the field of tax law, there is also the possibility of considering litigation financing for those who work in tax litigation.

The concept of litigation financing, developed by Pedro Mota, refers to the practice by which a third party, who is not a party to a given dispute, enters into a contract with a litigant to provide financial or material support and finance a portion or all of the costs of the proceedings.

In tax law, in particular, litigation financing can be a great investment, since if the financed dispute involves the recovery of tax credits, there is a high probability of return.

This presents yet another opportunity for professionals working in the tax field to explore.

The terminology in tax law

To achieve success and renown in tax law, it's not enough to open an office and solve the problems that arise. A lawyer must be prepared to build legal arguments, develop compelling cases, and stay informed about everything happening in the sector.

When I spoke with you about tax avoidance, tax evasion, and tax fraud, I mentioned a story I experienced during my undergraduate studies. It was advice I received from a professor, Luciano Andraschko, that greatly influenced my academic journey.

When explaining the content in class, he would say that "if the law gives different names to legal institutions, it's because they are different things!"

In tax law, it's no different.

It is very important for a lawyer to be aware of the terminology (whether legal, accounting, economic, or otherwise) so that, when providing their services, they can act in a technically sound and effective manner. In this way, by succeeding in a particular case, they will be recommended to other potential clients, becoming a reference in developing solutions.

Specialization in tax law

Without a doubt, a postgraduate degree in Tax Law can help you stand out in tax law practice.

This is because clients feel more secure when hiring a qualified professional in the field of tax law. Furthermore, certification in the area gives them greater authority to set fees according to the complexity of the work.

With a specialization that includes online (and even better, live) classes, for example, you will be able to do thorough reading on complex tax law topics, and in class you can ask questions of professors and colleagues in the field.

Furthermore, the training of a lawyer specializing in Tax Law is continuous. I often say that specialization is the gateway to establishing authority in tax law. With it, you can work in large firms, prepare legal opinions in highly complex cases, and become a leading figure in the legal profession.

That being said, I would like to thank you for your company so far!

Take the opportunity to read our ebook "Guide for Tax Law Professionals," in which experts with experience and expertise in Tax Law offer tips on career paths, opportunities, and prospects in the field.

I hope to see you again soon! Until the next article.

References

Litigation financing and democratization of justice, available on ConJur.
https://www.conjur.com.br/2022-abr-14/opiniao-financiamento-litigio-democratizacao-justica

CHAVES, Francisco C. Tax Planning in Practice – Applied Tax Management, 4th edition. GEN Group, 2017. E-book. ISBN 9788597011876.