Haddad announces economic package; see measurements

The Minister of Finance, Fernando Haddad, announces this Thursday (12) the measures of his first economic package.

The package is focused on tax measures with a focus on the stock of administrative processes in the Tax Appeals Administration Council, the body that judges tax disputes.

As shown to CNN on the night of this Wednesday (11), the package includes four Provisional Measures, two Decrees, an Interministerial Ordinance, one from the Revenue and one from the Attorney General of the National Treasury.

Are they:

1) “Zero Litigation” Program

This measure will allow taxpayers to resolve their tax disputes with the government and, at the same time, allow the inflow of resources to the public coffers.

The design of the program is basically divided into two plans.

For individuals, micro and small companies, the discount can be up to 50% on the total amount of the debt, to be paid within 12 months. In this case, debts must be up to 60 minimum wages.

For legal entities with debts greater than 60 minimum wages, the discount may be up to 100% on the amount of interest and fines.

The program also provides for the use of tax losses and negative calculation base to settle between 52% and 70% of the debt.

It also establishes the end of recourse to the Administrative Board of Tax Appeals (Carf) for amounts below R$ 15 million. That is, if the taxpayer wins in the first instance, the litigation would automatically end.

With this, there is an expectation of automatic extinction of almost a thousand processes that are currently in CARF and add up to almost R$ 6 billion.

There will also be a 100% discount on fines (official and moratorium) in case of regularization and presentation of amounts to taxation.

According to the calculations of the economic team, there are more than 30,000 processes at Carf with amounts exceeding R$ 720 million. In the Revenue Offices there are more than 170 thousand processes that add up to almost R$ 3 billion.

2) ICMS on the PIS/Cofins calculation basis

One of the measures in the package provides that PIS/Cofins will not be calculated on ICMS and, therefore, credits will no longer be computed in this way.

3) Return of the casting vote on Carf

This is the resumption of the tie-breaking vote in favor of the Union in tax disputes with taxpayers in the Tax Appeals Administration Council, the body that judges tax disputes.

With the vote, the chances of winning the Revenue are greater and, therefore, of increasing the collection.