The 1st Panel of the Superior Court of Justice (STJ), by a majority vote (3-2), held that the portion of the monetary correction levied on financial investments should be taxed by IRPJ and CSLL. Supported by the vote of Justice Gurgel de Faria, which was concurred by Justices Benedito Gonçalves and Sergio Kukina, it was decided that Law No. 9,718/98 expressly provides for the taxation of these income. Justices Napoleão Nunes and Regina Helena Costa voted in favor of the taxpayer, understanding that the monetary correction does not represent an increase in assets.
Although the battle is lost, the taxpayers’ war against the tax authorities is not over yet. Firstly, because the decision was not affected by the repetitive appeals system, and secondly, the Supreme Court is awaiting judgment on Issue 962, which discusses the unconstitutionality of the levying of IRPJ and CSLL on the SELIC rate levied on undue taxes. Although the core of the discussion is different, if this judgment concludes favorably for taxpayers, it will impact the ruling reached by the First Panel of the Superior Court of Justice (STJ).
