The postponement of tax payments is a global trend in this pandemic scenario.
In Brazil, it is no different. Firstly, regarding federal taxes, there was already a provision in Portaria MF 12/2012*. Since March of this year, the Federal Government has also been adopting emergency measures to suspend collection actions, facilitate debt renegotiation, and extend the deadline for payment of federal taxes for March and April.
But what about the Government of the Federal District (GDF)?
Certainly, it is not idle. After all, the work that the GDF has been carrying out during these times is easily monitored, especially through the COVID-19 Legislation Compilation, available on the official website.
However, it should be noted that, regarding taxation, the GDF has only issued:
- Decree No. 40,549 of March 23, 2020, which reduced the ICMS rates for products used in the prevention and fight against the virus;
- Decree No. 40,598 of April 4, 2020, which extends the deadline for payment of ICMS and ISS for taxpayers in the Federal District who are optants for the Simples Nacional tax regime.
In other words, there is a state omission here: companies that are not part of the Simples Nacional tax regime are left without any deferral of payment for district taxes. This affects especially those businesses that have had their activities compromised due to the quarantine imposed by the Government.
It is at this point that taxpayers are seeking recourse in the Judiciary, as many are unable to immediately fulfill their tax obligations during this period of public calamity, considering their intention to maintain jobs and business activities. But at the same time, how can a company survive without a Tax Compliance Certificate?
Within the scope of the Court of Justice of the Federal District and Territories (TJDFT), there have been both favorable and unfavorable decisions regarding anticipatory claims. The rejections were based on various grounds, including the need for revenue collection during a period of strong government action to contain COVID-19, the moratorium cannot be general or generic, and the judiciary’s incompetence to act as a legislator.
However, considering the pandemic, it is understood that many contributing companies do have the right to an extension of the deadline for payment of district taxes, including the postponement of ongoing installment payments and compliance with ancillary obligations, even for reasons of equality.
Nevertheless, to increase the chances of success, the topic requires careful factual, legal, and social calibration, as well as special attention to the delineation of requests.
*Article 1: The due dates for federal taxes administered by the Secretaria da Receita Federal do Brasil (RFB) owed by taxpayers domiciled in municipalities covered by state decrees that have recognized a state of public calamity are extended to the last business day of the 3rd (third) subsequent month.
District taxes during quarantine and post-Covid-19: What happens to businesses that have had their activities compromised?
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The postponement of tax payments is a global trend in this pandemic scenario.
In Brazil, it is no different. Firstly, regarding federal taxes, there was already a provision in Portaria MF 12/2012*. Since March of this year, the Federal Government has also been adopting emergency measures to suspend collection actions, facilitate debt renegotiation, and extend the deadline for payment of federal taxes for March and April.
But what about the Government of the Federal District (GDF)?
Certainly, it is not idle. After all, the work that the GDF has been carrying out during these times is easily monitored, especially through the COVID-19 Legislation Compilation, available on the official website.
However, it should be noted that, regarding taxation, the GDF has only issued:
In other words, there is a state omission here: companies that are not part of the Simples Nacional tax regime are left without any deferral of payment for district taxes. This affects especially those businesses that have had their activities compromised due to the quarantine imposed by the Government.
It is at this point that taxpayers are seeking recourse in the Judiciary, as many are unable to immediately fulfill their tax obligations during this period of public calamity, considering their intention to maintain jobs and business activities. But at the same time, how can a company survive without a Tax Compliance Certificate?
Within the scope of the Court of Justice of the Federal District and Territories (TJDFT), there have been both favorable and unfavorable decisions regarding anticipatory claims. The rejections were based on various grounds, including the need for revenue collection during a period of strong government action to contain COVID-19, the moratorium cannot be general or generic, and the judiciary’s incompetence to act as a legislator.
However, considering the pandemic, it is understood that many contributing companies do have the right to an extension of the deadline for payment of district taxes, including the postponement of ongoing installment payments and compliance with ancillary obligations, even for reasons of equality.
Nevertheless, to increase the chances of success, the topic requires careful factual, legal, and social calibration, as well as special attention to the delineation of requests.
*Article 1: The due dates for federal taxes administered by the Secretaria da Receita Federal do Brasil (RFB) owed by taxpayers domiciled in municipalities covered by state decrees that have recognized a state of public calamity are extended to the last business day of the 3rd (third) subsequent month.