In an agreement reached with the Brazilian Bar Association (OAB) within the scope of ADI 7347, the Federal Government maintained the casting vote in the Administrative Council of Tax Appeals (CARF), but established conditions for this to happen.
When the taxpayer loses an administrative proceeding due to the casting vote, no fine or interest will be applied if the taxpayer pays the amount within 90 days of the decision being issued.
The Agreement also provides for other important points for taxpayers, such as the cancellation of tax representation for criminal purposes, as well as the possibility of using IRPJ tax losses and CSLL negative basis of the taxpayer itself, of a controlling or controlled legal entity, directly or indirectly, or of companies that are directly or indirectly controlled by the same legal entity to pay the principal. If the taxpayer fails to pay and wishes to dispute the matter in court, interest will be charged from the date of issuance of the Notice of Violation, but the
removal of the fine.
