Chamber approves project that resumes government tiebreaker vote in Carf

The Chamber of Deputies approved, this Friday (7), the basic text of Bill (PL) 2.384/23 that restores the government’s tie-breaking vote in the Administrative Council of Tax Appeals (Carf). The tiebreaker vote was reversed in favor of the taxpayer in April 2020 by Law 13.988/20. Deputies now vote on the highlights of the text.

According to the economic team, the return of the casting vote should bring about R$ 50 billion to the Union’s coffers this year alone.

The CARF is the second instance for the judgment of administrative processes related to the constitution of the tax credit managed by the Federal Revenue Service of Brazil, having equal composition between representatives of the taxpayers and the National Treasury.

The project foresees that, in cases of tie in the votes of the organ, it is up to the casting vote to the president of the Carf, function that must be occupied by representative of the National Treasury.

In January, the government published provisional measure which returns to the government the tie-breaking vote in CARF decisions, an administrative court that settles disputes between taxpayers – usually large companies – and the Federal Revenue Service. Without being voted on in time by Congress, the MP lost its validity on June 1 and was replaced by the bill voted on this Friday.

In his opinion, the rapporteur for the project, Deputy Beto Pereira (PSDB-MS), partially accepted the agreement between the government and the Brazilian Bar Association (OAB) for the return of the tie-breaking vote. The proposal was forwarded by the entity to exempt from fine and interest the taxpayer (generally large companies) defeated by the government’s tie-breaking vote in the judgments of the agency.

Companies defeated by the government’s tie-breaking vote would be exempt from the fine, paying only the principal debt and interest. If the company pays the debt within 90 days, the interest will also be cancelled. In addition, 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 main debt can be divided into up to 12 installments, with companies deducting losses from previous years, through Social Contribution on Net Income (CSLL) and Corporate Income Tax (IRPJ) credits. If the taxpayer resorts to Justice, the collection of fines and interest returns.

“Despite the relevance of the presence of taxpayers’ representatives at CARF, it seems to us that, in the event of an impasse in the judgment, the tax administration itself should have a greater role in establishing the administrative understanding regarding the interpretation of the tax legislation and the capitulation of the fact enforceable “, said the rapporteur. ′′ It should be noted, in this sense, that, if you do not agree with the exaction, the taxpayer has the possibility of activating the Judiciary, a faculty that is not conferred on the administration, except in very particular cases “, added Beto Pereira.