Quality Vote

Last Friday (07/07), the Chamber of Deputies approved the base text of Bill No. 2,384/2023 which, among other topics: (i) reinstates the casting vote in the event of a tie in the judgment of the Administrative Council for Tax Appeals (“CARF”); (ii) establishes measures for tax self-regularization; and (iii) imposes limits on tax fines at the federal level.

The text now moves on to the Federal Senate.

Among the main innovations brought by the new legislation, it is worth highlighting the provision that, when the CARF judgment is resolved by the casting vote, no fines will be charged and the taxpayer will have the option to pay the debt within 90 days, under different conditions.

If the taxpayer chooses to challenge the matter judicially, the Bill provides for circumstances in which the provision of guarantees may be waived.

Furthermore, in line with the settled jurisprudence of the Supreme Court on the subject, the text introduces relevant changes that limit the rate of fines that can be imposed in tax matters at the federal level and implements a greater gradation according to the committed infraction, taking into account, for example, the hypothesis of recidivism (to aggravate) and the case of excusable error (to reduce).

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