A topic has been provoking debates in the administrative tax sphere in the State of São Paulo: the drawing up of infraction notices and impositions of fines (AIIM), based on article 84-A of Law No. 6,374/89, to disregard acts and legal transactions carried out by taxpayers.
The 1st Panel of the Superior Court of Justice (STJ), in the judgment on Special Appeal No. 1.477.320, recognized the right to PIS and Cofins credits in relation to transportation in transactions to purchase vehicles from the manufacturer by the dealer with the purpose of later resale to the final consumer.
The Federal Supreme Court (STF) recognized the constitutionality of the Social Contribution on Net Income (CSLL) on July 1, 1992, by means of the decision rendered in RE No. 138.284/CE. This position was confirmed in a consolidated manner in ADI No. 15/DF, decided on June 14, 2007.
State Law No. 7,988/18 - RJ, published on June 15, revoked Article 75-A of Law No. 2,657/96 (the ICMS Law) in order to establish new rules regarding the procedures that the tax auditor of the Rio de Janeiro state revenue office must observe in order to disregard legal acts or transactions carried out for the purpose of concealing the occurrence of a taxable event or the nature of the elements giving rise to a tax obligation.
CAT Ordinance No. 59, published on July 6th by the State of São Paulo, governs the activities of logistics operators that store goods belonging to third-party ICMS taxpayers. Among the relevant points, we highlight:
ICMS Convention No. 51/18, published on July 5th, amended ICMS Convention No. 190/17, which governs, under the terms authorized in Complementary Law No. 160/2017, the remittance of tax credits arising from exemptions, incentives, and tax or financial-tax benefits established in disagreement with the provisions of letter "g" of item XII of paragraph 2 of article 155 of the Federal Constitution, as well as the corresponding restitutions.
Taxpayers will no longer be able to offset federal tax credits with debts related to the monthly collection due to IRPJ and CSLL estimates, according to Law No. 13,670/2018, published on May 30 (inclusion of item IX in paragraph 3, article 74, of Law No. 9,430/1996). In 2008, Presidential Decree No. 449 had already included this restriction in tax legislation, but it was not converted into law, and the measure ceased to be effective as of 2009.
Investment funds have had a prominent place in the Brazilian financial market because they enable the gathering and consolidation of assets from different investors into a single investment channel.
in view of the decisions rendered by the Federal Supreme Court in Extraordinary Appeal No. 593,849/MG and Direct Suit of Unconstitutionality ADI No. 2.777/SP” and (ii) CAT Ordinance No. 42/2018, which establishes the procedure to supplement and reimburse the withholding tax for substitution for the scenarios set forth in articles 265, 269, 277, and 426-A of the State’s ICMS Rules.
Brazil has for years been witnessing an intense debate regarding the constitutional jurisdiction to tax the most varied of legal deals involving digital assets, more precisely software, whether it is the ICMS, ISS, or neither of the two.
The 2nd Panel of the Superior Court of Justice (“STJ”) granted a taxpayer’s appeal to recognize that the ICMS cannot be included in the calculation basis of the Social Security Contribution on Gross Revenue (CPRB). The decision was issued in the judgment on Special Appeal No. 1.732.000/SP, on May 3.
The right to a tax offset recommends reflection on the rules issued by the legislator that shape such offsets. Among the rules, special mention should be made of section 170-A of the National Tax Code (CTN), introduced by Complementary Law No. 104/2001 (LC 104/01).
On April 7, 2018, the State of São Paulo published Complementary Law No. 1,320, of April 6, 2018 ("LC No. 1,320/2018"), resulting from Bill No. 25/2017, which establishes the Program for Stimulating Tax Compliance, “Compliance Program", defining principles for the relationship between taxpayers and the Tax Administration, as well as establishing rules for tax compliance.
Ordinance CAT No. 24/2018, enacted on March 23, governed, among other issues, transactions with digital goods and merchandise traded through electronic data transfer.
Companies were surprised last September with the enactment of ICMS Convention 106, which aims to regulate the procedures for collection of ICMS applied to transactions with digital goods and merchandise, traded through electronic data transfer, and grants exemption for withdrawals intended for final consumers.
