MP 1227/2024 became known as the End of the World MP because it placed restrictions on the offsetting of Pis/Cofins credits, in addition to creating new conditions for the maintenance of tax incentives and benefits, such as the submission of a specific declaration to the Federal Revenue Service, under penalty of a fine.
Because they were so offensive, the restrictions on the offsetting of credits in the calculation of Pis/Cofins and the revocation of the hypotheses of reimbursement and offsetting of presumed credits of the aforementioned contributions were summarily rejected by an act of the President of the National Congress.
However, the provisions that imposed on taxpayers the obligation to complete and present yet another additional obligation remained, this time listing each of the tax incentives and benefits enjoyed, all as a condition for maintaining the aforementioned incentives and benefits, under penalty of a fine.
With the passing of the 60-day period without its conversion into law, the End of the World Provisional Measure now falls completely.
Now, taxpayers must know how to proceed with regard to DIRBI (Declaration of Incentives, Waivers, Benefits and Immunities of a Tax Nature).
Although the MP that gave rise to it has lost its effects, the Federal Revenue Service has the authority to create additional obligations, meaning taxpayers can still be required to submit the DIRBI. Fines for failure to submit such obligations can no longer be collected precisely because they no longer have a legal basis.
Therefore, any attempt by the Federal Revenue Service to impose penalties on taxpayers who fail to submit the DIRBI may be questioned due to lack of legal support.
