Do you know those questions you've always wanted to ask a great tax lawyer, but never had the courage to? We conducted an interview with one of IDP's professors to help you get the start you need for your career in tax law.
About the interviewee
Jules Michelet holds a Master's degree in Law from the Federal University of Rio Grande do Norte. He was a Federal Attorney, a Legislative Consultant for the Chamber of Deputies in the area of Tax Law, and today practices law. He is a leading figure in Tax Law and a distinguished professor at IDP.
Dr. Jules, what are the essential qualities for a tax lawyer to excel in their field?
DOCTOR JULES MICHELET: The first thing I think is fundamental for a tax lawyer's career to succeed is technical preparation : being able to practice Tax Law.
I often tell my students this: you graduate from law school qualified to practice Civil Law and Labor Law, but Tax Law isn't like that, because we only get to see one or two subjects in university at most, so we only scratch the surface of the subject.
Therefore, professionals need to prepare themselves in some way, and 95% of the time this will be through postgraduate studies.
So, the first step is to prepare yourself to practice law, that is, to be able to understand the issues of Tax Law.
Secondly, you need to enter the market; this is a very important quality. Many students don't understand why they can't practice tax law, because first and foremost you have to understand how the market works.
In short, I believe in these two qualities: having the preparation and knowing how to present yourself.
What is the daily routine of a lawyer specializing in tax law like?
DOCTOR JULES MICHELET: It's very interesting, but also very difficult, because often you're dealing with tax authorities that specialize in that particular tax, in that particular area. Consequently, I believe that technical preparation is once again very important to face this.
Secondly, representing an auto parts factory is different from representing a human resources company. You need to understand your client's business. Therefore, you must have both broad and deep knowledge.
Furthermore, the volume of cases is generally not as large as in labor law, however, the number of hours a case demands is impressive.
Finally, there is a need for interdisciplinarity because you will have to understand a lot about accounting, business administration concepts, and finance.
So, I always emphasize that being a tax lawyer is a very interesting profession, but also very difficult; you have to really enjoy it!
Where can a Tax Lawyer work?
DOCTOR JULES MICHELET: Firstly, the obvious area of practice is in law firms. In São Paulo there are many firms specializing in Tax Law, in Rio de Janeiro as well, and in Brasília and in the Northeast I see that it is starting to grow.
This choice of working in a law firm is obvious, but to get in you need to demonstrate some preparation and experience in tax law.
The second option is for you to work in the company's in-house legal department. After all, in addition to the company's accounting, it's necessary to have a legal perspective on taxation as well. Many companies are waking up to this, and it's a growing field; just look at the number of job postings on LinkedIn.
Finally, the third option is to work in your own office. If the person really wants their own business, it may be interesting for the tax lawyer to have other ways of attracting clients, for example, a partner who can bring in companies from another area, such as labor law, corporate law, or contracts.
What are the market opportunities for a Tax Law Attorney?
DOCTOR JULES MICHELET: I would highlight two. The first is Tax Planning, in which you optimize the company's tax savings opportunities, which are very sophisticated operations.
In this way, tax planning often involves knowledge not only of typical tax matters, but also of corporate law, contracts, and an understanding of the client's core business .
So, if you specialize to the point where you can work with Tax Planning, it's a very interesting field, and highly qualified professionals are highly sought after by accounting firms and the market.
Finally – believe it or not – the ICMS (Brazilian state sales tax) is a great opportunity because its legislation is very complex; being a state tax, it varies across the 27 states, creating a huge area for litigation, and it's currently undergoing a transformation process. Furthermore, the Tax Reform will specifically address the ICMS.
Consequently, tax lawyers who are well-versed in ICMS (Brazilian state sales tax) will stand out after the Tax Reform. After all, they tend to have an advantage because they already know the past and will certainly understand what has changed.
Do tax lawyers earn well?
DOCTOR JULES MICHELET: Tax Law tends to pay more than other areas because the tax assessments are very high. This stems from a deficiency in the Brazilian tax system.
If you think about it, the better the tax system, the lower the lawyer's fees in that area.
I often compare a tax lawyer to an oncologist; you make money doing something very bad, it would be better if it didn't exist, but since it does, someone has to work with it!
Furthermore, regarding remuneration, it is worth highlighting three issues:
- When the system improves, compensation tends to worsen slightly. Therefore, you have to be prepared to address not only the system's weaknesses but also its strengths.
- Very high fees can be diluted depending on the size of your office; sometimes you charge an extremely high amount, but it might end up being absorbed by the fixed costs of the business. It's important to be mindful of this.
- The third point concerns highly repetitive legal arguments, "countertop" arguments, which everyone used to use in court and win. Today, because the Judiciary is able to judge in the abstract, it is curbing this phenomenon. Therefore, these arguments are disappearing, and lawyers must be much more discerning when adopting one of them and must have much more knowledge to explore situations within the system that are not repetitive.
What would you say to someone starting their career in Tax Law?
DOCTOR JULES MICHELET: I wanted to say to the student at the beginning of their career: don't get frustrated.
Lawyers, in general, have a very difficult time finding work because it's a very saturated market; however, this market is saturated for generalists, not for specialists.
So, if you specialize in the tax area, you'll see that it's not like that; it's not as overwhelming a skill as it seems.
Persist, be patient, keep searching and always look for opportunities: attend events, meet people, pursue postgraduate studies . In the short to medium term, you will be able to establish yourself in the job market.
And I say: once you establish yourself in the market, once you do well, you'll never be kicked out again; you'll keep moving from one office to another, from one company to another, growing.
Patience and persistence will work out if you follow the right path.
Talk to people. Talking to and getting to know people is essential.
And finally, don't be afraid to go after what you want.
Is being a tax lawyer worthwhile?
DOCTOR JULES MICHELET: It's definitely worth it, it pays well, I really enjoy what I do. If I had to choose, I would choose Tax Law again. If my daughter asked, "Dad, I want to be a lawyer, which area should I pursue?" I would certainly say Tax Law.
After these important tips, if you wish to pursue this career, take the first step with an online postgraduate course from IDP . With live classes and renowned professors, you are sure to stand out in the legal market.
