This article from Estadão reveals how Brazilian judges utilize 'penduricalhos' (perks and allowances) to significantly lower their income tax liability. While a private sector worker earning R$30,000 might pay approximately R$7,000 in taxes (22% effective tax rate), judges with inflated salaries due to these allowances can pay as little as 7%.
The key lies in the fact that these allowances, considered reimbursements, are not subject to income tax. This contrasts with the salary cap for Supreme Court justices, which doesn't include these supplemental payments. The article highlights this as a method for public sector employees to earn significantly more than Supreme Court justices, without paying the corresponding taxes.
The article concludes by providing links to the podcast and YouTube versions of this report.