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3 clusters · 13 sources · 10 days · First seen 11 days ago · Last updated 1 day ago

Brazilian judicial rulings on tax disputes

Overview

The Brazilian Supreme Federal Court (STF) has issued several significant rulings regarding tax calculations and constitutionality. In a 6-5 decision, the court ruled that municipal service taxes (ISS) must be excluded from the calculation base for federal PIS and Cofins contributions, following a precedent regarding state-level ICMS taxes. Justice Luiz Fux noted that ISS revenue represents a financial flow between clients and municipalities rather than company patrimony.

Regarding rural taxation, the STF ruled that the Funrural social security contribution, levied on the commercialization revenue of individual rural employers, was unconstitutional for sales made prior to January 2018. While current Funrural charges remain valid, producers may seek restitution for the unconstitutional period, provided they can verify documentation and meet requirements under the National Tax Code. This restitution is not automatic and depends on whether the right to request funds was preserved under existing law.

In related legal developments, the Superior Court of Justice (STJ) maintained the inclusion of ICMS in the calculation base for PIS and Cofins within the fuel sector’s special taxation regime, rejecting attempts by alcohol companies to extend previous tax exclusion precedents to their specific volume-based model.

Looking forward, the STF is set to analyze the legality of a 1% surcharge on Cofins-Importation. The court will determine if the 90-day waiting period, or “noventena”, must be applied to this surcharge following legislative changes involving Law 10.865/2004 and subsequent Provisional Measures.

Entities

Brazil · Supremo Tribunal Federal · Regional Federal Court of the 3rd Region · Luiz Fux · Supreme Federal Court

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The STF considered the Funrural tax unconstitutional for sales made before January 2018.
[● 3 SOURCES] The Funrural tax is a social security contribution for individual rural employers based on commercialization revenue.
[● 3 SOURCES] Tax restitution is not automatic following the STF decision.
[● 3 SOURCES] Current Funrural tax collection remains valid.
[● 3 SOURCES] The National Tax Code generally establishes a five-year period to request refunds for undue payments.
[● 3 SOURCES] The ruling affects companies that collected the tax on behalf of producers through sub-rogation.

Timeline

1 day ago

[POLITICS] 2 sources
Brazil Supreme Court to rule on Cofins-Importation tax surcharge
Brazil's Supreme Federal Court will decide if a 1% Cofins-Importation tax surcharge must respect the 90-day rule for new taxes.
9 days ago

[BUSINESS] 4 sources
Brazil's STF rules Funrural tax unconstitutional for sales before 2018
Brazil's Supreme Court ruled the Funrural tax unconstitutional for rural sales prior to 2018, allowing for potential refunds subject to specific documentation and legal deadlines.
11 days ago

[BUSINESS] 8 sources
Brazil Supreme Court rules on tax base disputes
Brazil's Supreme Court ruled to exclude municipal ISS from federal PIS and Cofins bases, while the STJ maintained ICMS inclusion for certain fuel sector tax regimes.

Sources

abandamaisbonitadacidade.art.br · arapuanews.com.br · bastidoresdopoder.com.br · conjur.com.br · contabeis.com.br · expressaonoticias.com.br · grnews.com.br · hora1rondonia.com.br · nx1.com.br · oglobo.globo.com · saobentoemfoco.com.br · seucreditodigital.com.br · valor.globo.com

This summary has been updated 1 time: see revision history