PGFN: Recovery of the Union’s active debt grows 23.5% – 04/01/2024 – What tax is this

The PGFN (Attorney General of the National Treasury) recovered R$48.3 billion in tax credits registered in the Union’s active debt in 2023. The number represents an increase of 23.5% compared to the previous year.

The prosecutor’s office states that the number is the result of two strategies improved in recent years. The first is the financial analysis of the taxpayer’s profile, which allows prioritizing the execution of the largest debtors with payment capacity. The second, the tax transaction.

According to the PGFN, 71% of the amounts owed are concentrated in just 0.4% of taxpayers who have debts registered as active debt.

In total, bodies linked to the AGU (Attorney General of the Union) recovered R$62.7 billion in 2023, an increase of 6.8% compared to 2022.

“PGFN’s role in recovering public credit is fundamental for the proper functioning of our country, as we collaborate to ensure resources for the implementation of public social and infrastructure policies, in addition to financing the structure of the Brazilian State and the protection of individual rights and collectives”, says the attorney general of the National Treasury, Anelize Almeida.

The use of tax transactions to pay in installments the tax debts of companies undergoing judicial recovery has placed the Union on an equal footing with other creditors, according to an unprecedented study prepared by Insper’s Taxation Center.

Bakery company gets discount in tax agreement

The Itaiquara Alimentos group, in judicial recovery, is one of the companies that signed a transaction agreement with PGFN last year. With federal liabilities of R$1.2 billion, the company obtained a reduction equivalent to R$861 million.

“The magnitude of this agreement not only highlights the significant volume of the company’s liabilities, but also highlights the positive impact of the tax transaction on its financial and operational health”, says Barbara Pommê Gama, partner at Dalazen, Pessoa e Bresciani Advogados, who participated of negotiation.

According to the office, around 66% of the discount was granted directly. The remainder was allocated for tax loss amortization.

“The tax transaction is not just an isolated case, but rather a clear indication of the opportunities that companies facing financial challenges can explore. Collaboration between taxpayers and tax authorities is essential to overcoming obstacles and ensuring business continuity”, says the expert .

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