The STF ruled on an important issue for the tax area, in which it discussed the constitutionality of the possibility of ordinary laws limiting the scope of the non-cumulative nature of PIS and COFINS Contributions, presenting among its reasons that, under the terms of the Federal Constitution, the legislation could only define the sector of economic activity to which the system would apply.
According to the Supreme Federal Court’s understanding in the ruling on an appeal with general repercussions, the ordinary legislature has the autonomy to regulate the non-cumulative nature of PIS and COFINS contributions, provided that other constitutional precepts are respected. Based on this understanding, they dismissed the taxpayer’s appeal.
