Novo goes to the STF against the return of the “quality vote” to Carf

The Novo party filed a lawsuit with the Federal Supreme Court (STF) to question the restitution of the so-called “quality vote” to Carf, the Administrative Council for Tax Appeals. The legislation was sanctioned in September by acting president Geraldo Alckmin (PSB) and gives the Union a win in disputes over tax cases in the body.

The Novo’s action, called Direct Action of Unconstitutionality, states that the resumption of the rule has the sole purpose of increasing federal tax collection, one of the government’s main bets to be able to eliminate the deficit in public accounts next year. The goal of zeroing the fiscal deficit is a promise that has put PT wings on a collision course, and which Finance Minister Fernando Haddad says he will continue to pursue.

According to the party, the rule violates the constitutional principles of due legal process, reasonableness, legality, impersonality and morality. Novo emphasizes that the purpose of Carf is to promote control of the legality of federal tax administrative acts, and not to increase Treasury revenue.

The party adds that, in cases decided using the casting vote, there will be a judicial questioning of the debt, given that the measure will not directly and immediately affect the Union’s budget collection, in addition to increasing litigation contesting procedural acts.

The party asks that the articles of legislation that give the Union a win in the event of a tie be declared unconstitutional, making it unfavorable to the taxpayer.

The “quality vote” was imposed by the government at the beginning of the year through a provisional measure and later approved by law as one of the fiscal adjustment measures to increase revenue and fund, among others, social policies. However, after approval in Congress, Alckmin vetoed 15 articles that should be discussed in the joint session of the Chamber and the Senate this Thursday (14).

Among the excluded points was the permission for the taxpayer to offer a guarantee only for the principal amount of the debt, excluding charges and interest. The vice president argued that such a change would significantly impact the current tax enforcement system.

Carf’s “qualifying vote” was in effect until 2020, when a previous law established a tiebreaker in favor of the taxpayer in Carf.

The new law offers taxpayers the option of paying off interest-free debts in 12 installments after losing a dispute in Carf through a deciding vote. This possibility also extends to the negotiation of debts included in the Union’s active debt in these circumstances.

Additionally, taxpayers with a large payment capacity, such as large companies, are exempt from presenting guarantees when going to court when Carf decides in favor of the Union through a tie-breaking vote.