Stubborn debtors do not deliberately settle taxes as a way to beat competition

by: Kalleo Coura (Portal JOTA)

The state of São Paulo has R $ 1,5 billion in problems that, despite countless efforts, it cannot solve. The amount corresponds to the size of the tax debt of just one large refinery, which the state tries, but is unable to receive.

The state has already tried to charge. Unsuccessfully. The state has already tried to seize assets. Without success (in a process in which he tried to recover R $ 1 million, for example, he found assets in the amount of R $ 280,83). He has even tried to cancel the state registration of tax substitution. Also unsuccessful - due to a judicial reorganization process in Rio de Janeiro.

Despite this, on average, each month, the company fails to pay an additional R $ 30 million in ICMS. “This is the most emblematic example of a persistent debtor,” says São Paulo state attorney Alessandro Junqueira, of the Special Action Group for Tax Recovery (GAERFIS). “Judicial recovery is being used improperly as a way of shielding the company and its assets. Everything indicates that in the future the refinery will leave a billionaire hole, which will not be paid, in several states of the federation ”.

Contumable debtor is the company that claims to have a tax debt, but in a repeated and premeditated way does not act to settle it. As the entrepreneur does not evade, he just does not pay the tax due, in theory, he does not commit a crime. In addition, it leaves the competition behind, as the non-payment of taxes is passed on to the price of the products, which are artificially cheaper.

“You owe tribute, eventually, it's life. The problem is when you structure your business with the objective of defrauding the tax authorities and thereby having a significant gain on the competition ”, says lawyer Edson Vismona, president of the Brazilian Institute of Ethics in Competition (ETCO).

Read the full story on the website JOT