Carf rules agro-industries cannot segregate revenues for tax calculations

The Administrative Council of Tax Appeals (Carf) has ruled that agro-industries cannot segregate different types of economic revenue to calculate substitute social security contributions.

In a decision involving Louis Dreyfus Company Sucos S. A., the council determined that once a company is recognized as an agro-industry, it is subject to the contribution regime established by Law No. 8.212/1991. This regime calculates substitute social security contributions based on gross revenue instead of employer contributions on payroll.

The ruling clarifies that the law does not allow companies to choose which revenues are subject to the substitute regime and which follow other systems. The council found that activities such as selling third-party products or trading electricity are considered part of the company's regular economic activity and cannot be used to create a hybrid calculation method.