On August 31, 2023, Bill of Law nº. 2.384/2023 was approved by the Federal Senate and sent to the President of the Republic for his sanction. The CARF Bill, as it came to be known, was responsible for reintroducing the system of a casting vote in favor of the Federal Government in the event of a tied result in votes within the Administrative Council for Tax Appeals (“CARF“).

In addition to this possibility, it provides that in tax administrative proceedings resolved in favor of the Federal Government by the casting vote, the fines imposed will be excluded and the tax representation for criminal purposes will be cancelled. Furthermore, if the taxpayer agrees to pay the amount due within 90 days, interest on overdue payments will be excluded until the date of the payment agreement, which can be made in up to 12 successive monthly installments.

The new provisions on the casting vote in favor of the Public Treasury will apply to cases judged during the validity of Provisional Measure nº 1.160/23 that are pending assessment in the competent Federal Regional Courts.

The bill also provides for the possibility of a specific tax transaction for debts registered that have been resolved in favor of the Treasury by the casting vote and are under judicial discussion, through a procedure to be regulated by the Attorney General of the National Treasury.

The Tax Enforcement Law (Law nº 6.830/80) was also the subject of an important change regarding the guarantee required for the taxpayer to present a defense. It now expressly states that the defendant who can obtain insurance or a bank guarantee from a third party may offer such a guarantee, in any form, only for the updated principal amount of the debt, producing the same effects as the attachment of the entire execution. However, these provisions will not be applied to those who, in the 12 months prior to the tax enforcement summons, have not had a valid tax clearance certificate for more than 3 months, consecutive or not. In addition, if it loses, the Public Treasury must reimburse in full the costs of contracting and maintaining the guarantee.

Finally, the bill provides for the possibility of entering into a legal agreement or other forms of consensual solutions with the creditor Treasury regarding the acceptance, evaluation, method of constriction and substitution of guarantees for the tax debt in the judicial sphere, to be regulated by an act of the Attorney General of the National Treasury.

By Anderson Stefani, Gabriel Rhee is Luciano Tonelli.

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