By Tax Area
On May 3rd, 2022, the Federal Revenue Service and the National Treasury General Attorney's Office published Notice No. 9/2022, through which the rules and conditions for joining the second proposal for a tax litigation transaction of relevant and widespread legal controversy were established.
This time, the subject matter chosen by the tax authorities was debts arising from the tax amortization of premium, under the regime prior to Law No. 12.973/2014.
To adhere to the transaction, however, the debt shall necessarily be registered as an active debt, or be the subject of discussion in a legal or administrative proceeding pending a final judgment, until the date of publication of the notice.
The adherence period runs from May 3rd until 7:00 PM (Brasília time) on July 29th, 2022.
Taxpayers can choose between one of the three payment modalities provided for in the Notice, and all options require the payment of a toll (entry) in the amount of five percent (5%) of the total debt amount, which shall be paid without reduction, and in up to five (5) consecutive monthly installments. The remainder of the debt can be paid in up to fifty-five (55) months, with deductions ranging from 30% to 50% of the main amount, fine, interest, and other charges depending on the number of installments chosen.
In any of the modalities, the amount of the minimum installment is one hundred reais (R$ 100.00) for individuals and five hundred reais (R$ 500.00) for legal entities.
As in other installments, the adhesion to the transaction further requires the confession of the debt, withdrawal of the challenges and administrative appeals in progress, and waiver of the right on which the legal and administrative proceedings related to the debts are based on.
The Notice provides that the adhesion to the transaction shall not imply the inventory of property arising from the listing of assets, tax injunctions, and guarantees provided administratively or in lawsuits.
With regard to transacted debts deposited in court, there is an express provision in the sense that the deposits will be automatically converted into Government income, at their full amount, that is, without the application of the deduction. Transaction benefits will only apply to any remaining debt balance after conversion.