The 3rd Panel of the CARF Superior Chamber recognized that a sugar and alcohol manufacturing company can take PIS and COFINS credits on storage expenses for finished products.
Although the discussion is not new, it is quite controversial in the Administrative Court, as there are decisions that are sometimes favorable to the Tax Authorities, and sometimes to the taxpayers.
In the case analyzed by the Superior Court, the ruling resulted in a deciding vote in favor of the company, arguing that storage is essential for maintaining production stages and subsequent marketing of the products. The winning vote was supported by the Superior Court of Justice (STJ) ruling that defined inputs as those expenses that are relevant and essential to the company’s activities.
It is worth highlighting two points: first, the constitutionality of the elimination of the casting vote always in favor of the Tax Authorities will return to the STF’s agenda this June/21, and so far only one vote has been cast in favor of the Tax Authorities; that is, the discussion is still open.
Secondly, a point that deserves reflection concerns efficient tax management by companies, specifically with regard to tax planning, since decisions of this type (expansion of the concept of input) have become increasingly common in the administrative sphere, and the review of these inputs for taking PIS/COFINS credits must be carried out frequently, since in most cases it represents significant tax savings.
