Publications - 24/01/22

Brazilian Supreme Court to face heavy tax cases in 2022

Brazilian Supreme Court (STF) released trial calendar for the first half of 2022 The Court is expected to judge important tax thesis:

  • Concept of credit under non-cumulative method in PIS/COFINS (federal social assistance contributions) (RE 841,979): STF will decide whether the non-cumulative method PIS/COFINS could be restricted, analyzing if taxpayers have the right to credit all purchases of goods or services necessary for the taxpayer’s activities or only those essential and relevant costs
  • Exclusion of PIS/COFINS (social contributions) from its own basis (RE 1,233,096)
  • Brazilian “general anti-avoidance rule” (GAAR), against tax planning considered abusive by the tax authorities. (ADI 2446)
  • PIS/COFINS (social contributions) on financial institution’s revenue. (RE 609,096 and RE 880,143)
  • Collection of ITCMD (inheritance and donations tax) by the States, since there is no complementary law that creates such tax. (ADIs 6817, 6829, 6832, 6837, 6836, 6839, 6825, 6835, 6822, 6827 and 6831)
  • Limits of res judicata in tax matters. (RE 949,297 and RE 955,227): The Supreme Court will decide whether a taxpayer who has obtained a favorable final decision not subject to appeal automatically loses this right when precedent is overruled.
  • Fines on tax offsetting procedure. (RE 796,939)

The expectation of these judgments is great due to the tax collection impacts and the need to reduce uncertainties in the daily lives of taxpayers, ensuring confidence in the proper functioning, stability and reliability of our legal system.