Judgments at Carf may be postponed during the term of the provisional measure – 04/10/2023 – What tax is this

Taxpayers who request the removal of cases from the CARF (Administrative Council of Federal Resources) judgments will have their demands automatically met, according to an ordinance signed by Minister Fernando Haddad (Finance).

The rule will be valid during the term of provisional measure 1,160, of January 12 of this year, which brought back the tie-breaking vote in CARF by a representative of the Treasury.

According to the ordinance, the requests will be automatically granted by the president of the judgment class and will not be included in the agenda while the MP is in effect.

The MP needs to be voted on by Congress by the beginning of June, when it expires. Congress should set up joint committees in the coming weeks to analyze four provisional measures. Among them the one that changes the rules of Carf.

Faced with the risk of defeat in Parliament, the government created a new text in agreement with the OAB (Brazilian Bar Association). But the matter is not considered closed by deputies, and in the Ministry of Finance itself there are doubts as to the approval of the measure in the terms negotiated.

According to a study by Insper’s Taxation Research Center, 138 amendments (suggestions for amendment) to the MP were presented in Congress. Some provide for the revocation and reinstatement of the casting vote. Others deal with new tie-breaking systems in the organ’s judgments.

Some maintain the casting vote, but attribute new effects to the return of this model for resolving judgments, such as the exclusion or reduction of fines, interest and charges, as well as the waiver of guarantees and the removal of joint and several liability. These changes are in line with the agreement drawn up with the OAB.

The Carf is a body of the Ministry of Finance, formed half and half by representatives of the Union and taxpayers, which judges in the second administrative instance disputes in tax and customs matters.

Changes to the council’s rules are part of the fiscal package announced by Minister Fernando Haddad (Finance) in early January to increase revenue.

The attempt to avoid billionaire losses for the Union in tax discussions ended up generating a trillionaire stock of actions awaiting judgment at CARF.

The value of the causes under discussion in the council grew by more than 60% in the last three years and surpassed the mark of R$ 1 trillion, although the number of accumulated processes has fallen by around 20%.

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