Brazil’s Supreme Federal Court (Supremo Tribunal Federal/STF) is going to decide whether or not there is a limit for fines that are applied due to non-compliance with ancillary obligations.
The topic had been scheduled for remote judgment between November 3 and 10, and the score was already tied (x1).
However, Rapporteur Minister Luís Roberto Barroso asked for emphasis, so the judgment will be rescheduled and included in the in-person agenda. There is as yet no date for the judgment to occur.
The Rapporteur had voted to grant the taxpayer’s appeal, proposing the following thesis: “Isolated fines due to non-compliance with accessory obligations cannot exceed 20% (twenty percent) of the value of the due tax when there is an underlying main obligation, under penalty of confiscation.”
Following resumption of the judgment, this position may change.
The topic is relevant, especially given the increasing number of additional obligations that are imposed on taxpayers.
For more information, please contact our Tax team at tributariocontencioso@btlaw.com.br).