In the 1st Panel of the 3rd Chamber of the 1st Section of the Administrative Council of Tax Appeals (CARF), a decision was issued, whose understanding was that presumed ICMS credits, which are tax incentives generally offered to attract investments, should make up the calculation basis for Corporate Income Tax (IRPJ) and Contribution on Net Profit (CSLL), based on the argument that such incentive should be the taxable basis for taxes if the company records them as part of its operating revenue.
The decision frightens taxpayers, given that it was contrary to the precedent set by the Superior Court of Justice (STJ) in 2018, which rules out such taxation under any circumstances.
For taxpayers who do not wish to subject themselves to possible questions from the Federal Revenue Service, it will be necessary to resort to the Judiciary to try to obtain a protective measure, especially since the position on the matter is favorable to the interests of companies.
