CARF Bill

Today, Law No. 14,689/2023 was published. This law reinstates the casting vote in the event of a tie in CARF judgments, introduces measures for tax self-regularization, and modifies the rules applicable to tax fines.

Now, in the event of a tied judgment, the President of the Panel, always a representative of the Tax Authority, shall cast the deciding vote, resolving the case.

The novelty lies in the cancellation of fines imposed in cases resolved by the casting vote. Additionally, taxpayers may express their intention to settle the debt within 90 days, which can be paid in 12 installments, using tax losses, negative CSLL tax base, and government debts.

The law also reduces the percentage of the qualified fine from 150% to 100%, applied when the taxpayer deliberately engages in actions to evade taxes. The fine may still be 150% in cases of recurrence.

On the other hand, the downside was the number of vetoes, which ended up altering significant innovations contained in the Bill, including the provision of a 100% cap on fines, the repeal of the 225% aggravated fine, and the possibility of reducing fines based on the taxpayer’s history and good faith.

These vetoes can still be overturned by the National Congress.

Please find below in our newsletter the main modifications introduced by the new law.

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