Chamber approves project that favors government in Carf; text goes to the Senate

The Chamber of Deputies approved this Friday afternoon (7) the basic text of the project that favors the government in case of ties in judgments at the Tax Appeals Administration Council (CARF). The deputies rejected all the highlights presented to change the proposal. Now, the text goes to the Senate.

The Carf is the last instance for judging tax issues at the Federal Revenue Service. The project analyzed by the parliamentarians reestablishes the so-called “quality vote” in the body’s judgments, giving the government a favorable result in cases of a tie. Since 2020, the draw benefits the taxpayer. The measure is expected to increase government revenue by up to R$ 60 billion.

The preliminary substitute for the rapporteur, Deputy Beto Pereira (PSDB-MS), maintains the casting vote on the text and partially incorporates an agreement reached between the federal government and the Brazilian Bar Association (OAB) on the subject, such as the reduction of fines and interest for the payment of debts in actions judged by CARF with a tiebreaker in favor of the Union, informed Agência Câmara.

This agreement was signed after the OAB filed a Direct Action of Unconstitutionality (ADI) at the Federal Supreme Court (STF) against Provisional Measure 1160/23, which dealt with the tie-breaking vote. The MP lost its validity without being voted on.

Thus, if the tie-breaking vote occurs, ex-officio fines will be excluded; and the Tax Authorities will not represent the taxpayer to the Public Prosecutor’s Office for a tax crime. This exclusion will apply to cases already judged by CARF and still pending analysis of the merits by the competent Federal Regional Court on the date of publication of the future law.

The text takes up part of the content of MP 1160/23, which lost its validity and was not voted on. The tiebreaker vote has been reversed in favor of the taxpayer since April 2020 by Law 13.988/20.