The 1st Panel of the 2nd Chamber of the 2nd Section of the Administrative Council of Tax Appeals (CARF) maintained the levy of social security contributions on amounts paid as compensation to employees who were transferred from one company to another in the event of a split of the original company.
In the case analyzed, the company was split and compensation was paid to the employees who remained and to those who were dismissed without cause.
The CARF judges understood that the compensatory nature of the payments made to employees transferred from one company to another was not proven, given that compensation presupposes the repair of damage through payment, unlike what occurred with employees who were dismissed without just cause, in which case the aforementioned contribution was ruled out.
