Congress moves to discuss scope of STF decision on retroactive tax collection

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A decision by the Supreme Court allows the review of tax debts of Brazilian companies that won the right in court not to pay certain taxes. Two proposals have already been filed in the Chamber to modulate the decision of the STF. After the Federal Supreme Court (STF) took a decision that calls into question a series of judicial decisions already concluded on tax issues, some initiatives aimed at discussing the scope of the determination began to emerge in the Chamber of Deputies. In summary, the ministers approved the possibility that previous decisions — even final ones — be annulled, if they are different from a new understanding of the Court on the subject. In practice, it means that actions dealing with the payment of taxes can be reviewed — even if the taxpayer has been victorious in all instances of the judiciary. The main immediate effect is a complete review of tax debts of Brazilian companies that, in the past, won in court the right not to pay any tax. With the decision reversed, the company may even have an outstanding debt with the Federal Revenue, which may even refer to the years in which taxes were no longer paid. Federal Government wants to approve tax simplification in the first semester Projects So far, at least two projects have been filed in the Chamber that propose modulation of the Supreme Court’s decision. Modular means defining the scope of the decision. Both initiatives are by Deputy Pedro Paulo (PSD-RJ) One of them, a bill, proposes maintaining the effects of a final and unappealable court decision – when there are no more appeals – in matters that discuss tax credit requirements, up to 10 February 2023. “It is not convenient to introduce the biggest fiscal surprise of the decade to taxpayers, which is why the project on screen is proposed”, said the deputy in the justification for presenting the project. Another proposal, a complementary bill, deals with “exceptional transactions” of those affected by the Supreme Court decision. According to the text, among other points, companies will be able to transact amounts with a 100% discount on interest, fines and legal charges, safeguarding monetary correction. “There are two projects based on the decision of the STF. One works forward, the other backwards. The objective is to modulate the effects of the decision”, said Paulo. “It is a decision that cannot take five, ten years to be modulated”, he said. The two projects were filed this Tuesday (14) and depend on an order from the mayor, Arthur Lira (PP-AL), to start processing. Other texts can still be filed. They must go through the House’s thematic committees, but can go straight to the plenary if they have the urgency approved.

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