Due to the effects of the Coronavirus pandemic, an industry from Rio de Janeiro has filed for an injunction in order to temporarily suspend payment of due ICMS (Tax on Circulation of Goods and Services) installments. The company wishes to ensure tax regularity in order to import more raw materials and provide goods to SUS (Brazilian Single Health System). With this measure, the company managed to postpone tax collection for 60 days, with assurance of no fiscal penalty.
The decision is from the 11th Rio de Janeiro State Treasury Court. Installments referred to old debts, considering that, currently, the company is exempt from ICMS charges.
Similar decisions were issued in São Paulo, but at least five were already suspended by the São Paulo State Court (TJ-SP). In addition to ICMS, decisions for suspension of ISS payments and other municipal taxes are already in court. Within the federal scope, extension of taxes for companies enrolled in the Simplified Taxation System (SIMPLES Nacional) was issued, and major companies are acting to attain such benefits as well.
“The decision for suspension (not merely an extension) of tax payment is a legitimate, reasonable and decisive measure in order to enable businesses to keep operating in face of the COVID-19 crisis, which must be carefully examined by the State and City Governments as to prevent incurring in ordinary tax evasion. We have been providing support to several companies in attaining tax-related legal measures for fighting the crisis, on a case-by-case analysis of each”, comments Bruno Zaroni, partner at Zaroni Advogados.