Tax incentives archives - Page 3 of 3

Government of Mato Grosso targets 400 companies benefiting from tax incentives

Economic Development Secretary, Seneri Paludo: Government will change policy for granting tax incentives - Photo Tony Ribeiro / MidiaNews) — Economic Development Secretary, Seneri Paludo: Government will change policy for granting tax incentives (Photo Tony Ribeiro / MidiaNews)

The Secretary of Economic Development of Mato Grosso, Seneri Paludo, informed that the Government is making a detailed analysis of the tax incentives granted to approximately 400 companies in the State.

In an expanded study carried out through working groups, the Government intends, not only to audit the current incentives, but also to define a new tax policy in the State.

The work related to the granting of incentives is conducted by the portfolio headed by Paludo, together with the Finance and Planning departments, led by secretaries Paulo Brustolin and Marco Marrafon, respectively.

The composition of the working group and the actions to be carried out by it were determined through ordinances signed by Governor Pedro Taques in the past few days.

“In fact, six ordinances were published, one of which defines the Working Group, through which we are going to audit all tax incentives that have been granted in the State in recent times. We will assess whether all the processes took place satisfactorily and in the light of the Law ”, explained Seneri Paludo.

The measure, according to the secretary, is justified considering that, at present, there are no clear rules in the concession policy, nor the proof that the benefited companies fulfill the established goals.

“We have to look at the beneficial return that the measure brings to society. There must be a clear rule so that everyone has the same right. I cannot give to one sector, one company, and I cannot give to another. We have to have this policy clear, as to how this implementation will be ”, said Paludo, in recent interviews.

With regard to the need for a new tax policy in the State, one of the ordinances cited by the secretary mentions the “importance of a new fair tax policy that would provide opportunities for businesses, business start-ups and accelerated economic development in the State of Mato Grosso”.

The secretary informed that this new model of fiscal incentive in Mato Grosso should be presented within 90 days.

Attraction of investments

According to Seneri Paludo, a new investment attraction policy for the State is also being formatted. In this sense, the criteria and models to be applied are being discussed.

The secretary even affirmed that the Government has studied policies applied in other states.

“We are studying the Goiás model, some models from the State of Paraná, and there are some examples of success in Pernambuco as well. But the idea is for us to sit down to discuss the way of working, see how to do it and work to put it into practice ”, he said.

While auditing and remodeling work is being carried out on the policy for granting tax incentives in the State, the analysis of new orders is suspended, according to Paludo.

“The tax incentives that have already been granted have not been suspended. Companies continue to enjoy these benefits. What is suspended is the publication and analysis of new incentives that were requested ”, he explained.

Absence of inspection

In an exclusive interview with MidiaNews, at the beginning of the year, Paludo criticized the lack of supervision in granting tax incentives.

According to him, in recent years, the Government has granted incentives and benefits to large industries, without the inspection and certainty of return in terms of job and income generation.

At the time, he also stated that, despite the great potential, Mato Grosso is experiencing a moment of economic stagnation.

According to the secretary, both in the areas of industry and commerce, as well as in tourism and agribusiness, the Government has not benefited the productive chain that ranges from the smallest entrepreneur to the industries, it has only made it difficult for micro-entrepreneurs to access development policies.

Source: Site MidiaNews

Businessman does not 'pay' for fiscal war.

A recent decision by the Superior Court of Justice (STJ) brings relief and an important precedent for partners and executives of companies criminally prosecuted due to the fiscal war between states. The Court, in a recent decision on the merits, ruled that businessmen cannot be penalized by an economic dispute between States - which seek to attract investments by granting benefits not approved by the National Council for Farm Policy (Confaz).
The case analyzed by the court refers to a criminal action against three partners of Cominas Comercial Minas de Baterias for the charge of crime against the tax order. The penalty in this case ranges from two to five years in prison. “A war was left on the taxpayer's shoulders that is not his own and, worse, with criminal cases”, says Heloísa Estellita, lawyer for the partners in the process and professor at the São Paulo School of Law at FGV.

According to experts, the discussion is a matter of legal interpretation. Taxpayers use a benefit authorized by law in a given state - which, for lawyers, is legal. The State that feels harmed interprets that the reduction or suppression of a tax may have occurred, which would characterize a crime against the tax order. For this reason, some finance departments forward representation to the Public Ministry, which can request the opening of a police investigation and, depending on the results, submit a criminal complaint to the Judiciary. Fact that occurred in the case in question.

The entrepreneurs were denounced by the MP of Minas Gerais because they used ICMS credits from tax benefits in Pernambuco, not approved by Confaz. As Minas Gerais does not recognize this benefit, the State understood that the taxpayer would have appropriated undue credit and paid less ICMS. For the MP, the loss for Minas Gerais would have been R $ 21,8 thousand.

As a defense, the partners claimed to be victims of the fiscal war between Minas Gerais and Pernambuco. "The sale was taxed, the selling company had to point out the value of the ICMS on the sale, but then it did not have to pay it in full to the State of Pernambuco", says Heloísa, who recalls that the incentive is still in force.

At STJ, Cominas maintained that the tax credit it took would be legitimate because it comes from a tax benefit granted to the company from Pernambuco by the State. Being legitimate, there could be no talk of suppressing taxes. In addition, there would be no record that the invoices mentioned in the complaint were false. In that sense, there would be no crime.

The rapporteur at STJ, Minister Gurgel de Faria, dismissed the allegation of false document and crime. For him, the use of ICMS credit due to differences in interstate rates, without tax fraud, has no criminal repercussions. The 5th Panel's decision was unanimous for the closure of the criminal action. "The taxpayer who pays the tax in compliance with the constitutional principle of non-cumulativity cannot be charged with the practice of tax crime, as well as maintaining bookkeeping fidelity, within the rules valid within the scope of the respective entities of the Federation," he said.

Source: Valor Econômico (14/01)

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Starting in the legislature, the end of the Fiscal War is possible.

By Evandro Guimarães, President of ETCO

The parliamentary recess is approaching, but there is still an expectation that the Senate will vote this year on a bill that helps in the effort to end the fiscal war between states. Those who defend the approval recall that the new governors will be able to take office on January 1 with a new orientation, which can help a lot in the development of the country as a whole.

The expectation comes from November 4, when the Senate Economic Affairs Committee (CAE) approved the fifth substitute presented by Senator Luiz Henrique (PMDB-SC) to the original project of Senator Lúcia Vânia (PSDB-GO), PLS130 / 14. The substitute authorizes the National Council for Farm Policy (Confaz) to validate the tax incentives granted to States, even without unanimous decision, as required today.

Senator Luiz Henrique's substitute avoids the risk of unconstitutionality of the bill presented in April (PLS 130/2014), by Senator Lúcia Vânia (PSDB-GO) and predicts that an agreement for the validation can be signed with the support of two thirds of the federated units and one third of the federated units in each of the five regions of the country. The change in quorum applies only to the validation of tax incentives, forgiveness of tax credits arising from disputes between States and eventual reinstatement of benefits.

This approval is the initial step towards pacifying the issue of tax incentives through legislation. ETCO defends the immediate mobilization of parliamentarians for the end of the fiscal war, as the solution must be sought in Congress, where an agreement is possible, with concessions between the interested parties, as was the case in CAE.

The vote on PLS 130/14 can avoid the resolution of the fiscal war by the Federal Supreme Court (STF). The Supreme Court has already ruled in 29 Direct Unconstitutionality Actions (ADIs) that incentives granted without the consent of Confaz are unconstitutional and may place the Binding Summary Proposal 69 on the agenda. The text considers the ICMS tax incentives granted without prior unanimous approval to be unconstitutional. do Confaz. If the Binding Summary is edited, all the organs of the Judiciary and the direct and indirect public administration, at the federal, state and municipal levels, are obliged to adopt this consolidated STF orientation.

This situation - of a bill pending in the Senate and a binding summary that can be edited - causes legal uncertainty that results in paralysis of investments in the country. clear for future incentives, companies have left projects aside.

Shortly after approval by the CAE, the Confaz Coordinator, José Barroso Tostes Neto, stated that the agreement to vote on the substitute was possible because the government was willing to start discussions for the reform of the ICMS. The creation of Regional Development and Compensation Funds is essential to compensate for losses by States.

The path of the new federative pact is outlined and the first step has been taken. It remains to advance the approval of the text that legalizes the tax incentives created by States and the Federal District and, subsequently, the ICMS unification projects and the creation of funds, so that the instruments to stimulate development are all aligned.

Lúcia Vania asks government collaboration to solve Fiscal War

Senator Lúcia Vânia (PSDB-GO) regretted information that the government would like to postpone voting on a bill of her own that regulates tax incentives granted by states to attract investments (PLS 130/2014). She explained that the proposal, approved earlier this month by the Economic Affairs Commission (CAE), aims to offer a definitive solution to the fiscal war; ensure legal security for states and companies; and prevent the problem from being resolved by the Supreme Federal Court (STF). The proposal, according to the senator, also opens the way for other discussions of tax reform.

(Source: cenariomt.com.br - 21/11/2014)

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Tax incentives: STF gives deadline for regularization and may create gap for other cases

In view of the impasse of the Federal Senate on the rules of the current tax incentives, the Supreme Federal Court (STF) analyzes questions regarding the benefits. At the beginning of the month, the STF plenary set a precedent for regularizing incentives that do not meet the legislation. In this case, the ministers concluded that the benefit was illegal, but gave the State of Ceará a year to promote the legalization of the rule, which established special conditions for companies that employ physically disabled people.

(Source: seculodiário.com.br / 20-11)

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Senate approves validation of state tax incentives

The CAE (Senate Economic Affairs Commission) approved on Tuesday (4) the validation of tax benefits granted by States to attract investments, within the so-called fiscal war. The text must be voted on in the House plenary this Wednesday (5), and then go to the Chamber of Deputies.

The bill aims to maintain incentives related to ICMS (Tax on Circulation of Goods). To this end, they will be revalidated based on new legislation that changes the quorum for approval of these benefits.

The STF (Supreme Federal Court) has already decided that they can only be granted by unanimous decision of Confaz (National Council for Farm Policy), an organ that brings together the state finance secretaries.

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Solution to the fiscal war

ETCO contributes to the search for an appropriate, transparent and negotiated solution to the issue of tax incentives related to the ICMS, a focus of legal uncertainty in the government and in the business environment.

REFERENCES

Fiscal War - Reflections on the Granting of Benefits Within the Scope of Icms, by Paulo de Barros Carvalho and Ives Gandra da Silva Martins. Editora Noeses, 2012.
The so-called Fiscal War, especially the one referring to the ICMS, involves not only the friction between the States of the Federation, but also directly affects taxpayers who have benefited from tax incentives. In the book, the authors present two studies that reflect their understanding of the granting of tax exemptions, incentives and benefits under the ICMS, as contributions to the solution of the important and difficult issue of the Fiscal War.
Fiscal War - Reflections on the Granting of Benefits Within the Scope of Icms - 2nd Edition, by Paulo de Barros Carvalho and Ives Gandra da Silva Martins. Editora Noeses, 2014.
The harmful and illegal competition that endangers the Brazilian Federation - the Fiscal War - especially the one referring to the ICMS, involves not only the friction between the States of the Federation, but also directly affects taxpayers who have benefited from tax incentives. In the book, the authors present two opinions that reflect their understanding of the granting of tax exemptions, incentives and benefits under the ICMS, as contributions to the solution of the important and difficult issue of the Fiscal War. In this second edition, the authors added two new texts and included the transcript of the entire content of the preliminary draft prepared by the Federal Senate Pact Commission.
The Icms Tax War - A Critical Analysis of Credit Disallowances, by Eduardo Rodrigues Marques Klaus. MP Editora, 2010.
The author enters the study of the ICMS, delving into the principle of non-cumulativity. Then he brings his vision of tax benefits to the work. At this point, more than exposing the requirements related to their concession and identifying their species, Professor Klaus confronts these benefits with the financial ones, enriching his work.
Constitutional Changes to Icms, Fiscal War, Tax Competition and Improving the Business Environment In Brazil, by Fábio Roberto Corrêa Castilho. Editora Quartier Latin, 2013.
The constitutional reforms of the ICMS profile, today at the center of the discussion of reforms in the national tax system, aim, above all, to end the fiscal war between States. In this work, we tried to show that such reforms underestimate illegality as the main cause of the harmfulness of the fiscal war, leading to the disregard of the alternative of creating a normally competitive ICMS environment. At the same time, due to their excessive complexity and scope and because they occupy the discussion agenda on taxation in Brazil, they hinder incremental institutional changes in the ICMS that could, in fact, improve the Brazilian business environment.
ICMS credits in the Fiscal War, by Luiz Rogério Sawaya Batista. Publisher Quartier Latin, 2011.
This book deals with the fiscal war, with which the author obtained a master's degree in tax law from Universidade Presbiteriana Mackenzie. The matter is dealt with very proficiently in its various aspects, of which I want to dwell on just one point: the constitutionality of the challenge, by the state of destination, of credits that correspond to incentives granted unilaterally by another state, without the necessary approval by the Confaz. There are basically two positions in this field. For one, no state can challenge full credit (that is, 12% in the example given above) until the state law or decree that granted the incentive has been declared unconstitutional by the STF. For another, this challenge is perfectly possible without the need for a prior declaration of unconstitutionality, based on the provisions of art. 8 of complementary law No. 24, of January 10, 1975. In the state of São Paulo, there is a provision of state law that establishes this procedure - Alcides Jorge Costa.