Deadline for joining the Federal Tax Transaction Agreement is extended
The Attorney General’s Office of the National Treasury (PGFN) extended the deadline of Notice No. 1/2019, which makes public proposals for joining the federal tax transaction in the collection of the Union’s active debt, until March 25.
The notice includes only taxpayers who have not committed fraud and who have debts registered in the Union’s active debt (DAU) with a total value of up to BRL 15 million, considered by PGFN as irrecoverable or difficult to recover.
However, there are legal exceptions to the agreement. It is not permitted to transact debts with the Guarantee Fund for Time of Service (FGTS), Simples Nacional, or qualified fines or criminal fines.
The discounts offered can reach 50% for the option of payment in a single installment and the term can reach up to 84 months. If the debtor is an individual, micro and small business, the discount for a single installment can reach 70% and the payment term can reach 100 months.
In the case of social security debts, the maximum term is 60 months, due to constitutional limitations.
The minimum amount of installments of any type provided should be BRL 100 for individuals, micro and small businesses; and BRL 500 for other legal entities.
Recalling that this modality (adhesion), is valid only for taxpayers officially called.
The extension of the deadline for applying the adhesion tax transaction (first of the three modalities in which it is possible to use it, with a Notice already published), is opportune, among other reasons, for the following reasons:
1) MP 899/19, which created the Federal Tax Transaction based on art. 171 of CTN, has not yet been converted into law, and according to reports and monitoring of Congress activities, it has received several amendments, that is, there is no legal certainty for taxpayers to join an important institute like this, whose base wording of legal requirement that created it may face changes;
2) PGFN itself opened a public consultation on the regulation and the respective practical procedures for carrying out a transaction, with the aim of improving the regulation put into consultation, including in view of the initial practice that may be observed;
3) Also, according to the PGFN, the contributions received will be analyzed by the competent Deputy Attorney General and may serve as a basis for eventual changes to the PGFN Ordinance put into consultation;
4) So far, there has been no disclosure of the results of this Public Consultation, which increases the uncertainty for adherence based on the text currently in force.
Timely and common sense, therefore, the extension of the deadline.
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Advisory and Tax Litigation Nucleus
Posted in: 03/03/2020