On October 16, President Jair Bolsonaro signed the Provisional Legal Taxpayer Measure that could assist in the settlement of up to 1.9 million debtors, whose debts with the federal government in active debt exceed BRL 1.4 trillion.
On another front, the Ministry of Economy wants to close hundreds of thousands of cases that exceed BRL 600 billion in the Board of Tax Appeals (Carf). The government says the program will be an alternative to the repeated granting of special installments (Refis).
The PM will allow negotiations of C and D rated debts on the Union Active Debt rating that have not committed fraudulent acts or unfair competition, recognize the debt and have not disposed of assets or rights without communication to the tax authorities. In such cases, discounts of up to 50% on total interest, penalties, and other debt charges will be granted. The rebate can reach up to 70% in the case of individuals, micro or small companies. The installment limit will be 84 months, extended to 100 months in the case of micro or small company. There will also be possibility of concession.
According to attorney Bruno Zaroni, founding partner of Zaroni Advogados, “In general, the Provisional Legal Taxpayer Measure will positively impact the government accounts, from the tax collection increase, as it makes room for taxpayers, individuals or legal entities, to be able to renegotiate amounts and settle debts with significant reductions in legal charges”, he says.
In addition to active debt negotiation, the PM extends the possibility of debtors discussing disputes in the administrative and judicial levels. The payment period will also be up to 84 months. The expectation of the government is the closure of processes that exceed BRL 600 billion in Carf.