In a decision handed down by the 2nd Panel of the Superior Chamber of the Administrative Council of Tax Appeals (CARF), the possibility of updating the SELIC rate for a taxpayer who submitted a request for a tax refund and who benefits from the Industrial Technological Development Program (PDTI) was ruled out. The program’s characteristic feature is the possibility of returning a percentage of amounts paid as Income Tax Withheld at Source (IRRF), applicable to royalty transactions destined abroad.
The prevailing understanding was that monetary adjustment does not apply to the amounts to be refunded, since there is no legal provision for this, and adjustment by the SELIC rate would only be applicable in cases of overpayment of tax or undue payment.
For those who find themselves in such a situation, it will be necessary to seek, in the Judiciary, recognition of the right to a refund plus the update, precisely because there is no legal basis to support the Federal Tax Authority’s claim.
