Commission approves tax debt payment program contested by taxpayer

Prorelit is foreseen in a provisional measure that also deals with tax planning and readjustment of federal taxes

The mixed commission of the Provisional Measure (MP) 685/15 approved on Wednesday (28) the report prepared by Senator Tasso Jereissati (PSDB-CE). The approved text allows the taxpayer to settle tax debts, due until June 30, 2015, with the Federal Revenue Service or the National Treasury Attorney General (PGFN) who are in administrative or judicial questioning. To pay off the debt, the taxpayer must recognize the debt and withdraw from the lawsuit, including in court, by October 30.

To join the Tax Litigation Reduction Program (Prorelit), instituted by the measure, the taxpayer must pay in part part of the total debt until the last business day of the month of the option, through one of the following conditions:

  • 30% of the consolidated amount of the debts indicated for the discharge, to be made until October 30, 2015;
  • 33% of the consolidated amount of the debts indicated for the discharge, to be made in two installments due until the last business day of October and November 2015; or;
  • 36% of the consolidated amount of the debts indicated for the discharge, to be made in three installments due until the last business day of October, November and December 2015.

To settle the remaining amount of the debt, credits from tax losses and the negative calculation base of Social Contribution on Net Income (CSLL), calculated until December 31, 2013 and declared until June 30, 2015, may be used.

In preparing his report, Tasso Jereissati took into account amendments that had to do with the topic and also changes brought about by a subsequent provisional measure, MP 692/15. “This MP changed the Prorelit to insert new conditions for payment in kind. Before these changes, the taxpayer had to pay in cash the equivalent of, at least, 43% of the consolidated amount of the debts indicated for the discharge until September 30th of this year ”, explained Tasso Jereissati.

The deadline for the taxpayer to withdraw from the lawsuit was also extended until October 30 by the report. Initially, it ended on September 30th.

The amount to be paid with tax debts will be determined based on the following rates:

  • 25% on tax loss;
  • 15% on the negative CSLL calculation base for private insurance companies, capitalization and financial institutions;
  • 9% on the negative CSLL calculation base for other companies.

The discharge does not apply to debts of withdrawals from funds in previous installment programs. If the tax credit is not validated, the taxpayer will have 30 days to pay the rest in cash.

Despite noting that the federal government is responsible for the breach in public accounts, Tasso Jereissati said he could not contribute to a scenario of fiscal catastrophe. In his view, the MP gives companies an advantage, which can reduce their tax losses.

MP 685/15 will continue to vote in the plenary sessions of the Chamber of Deputies and the Federal Senate.

Source: Agência Câmara Notícias (28/10)

Commission analyzes on Tuesday MP that discourages disputes with the tax authorities

The Joint Commission that analyzes the Provisional Measure 685 / 2015, which creates the Tax Litigation Reduction Program, has a meeting scheduled for 14:30 pm on Tuesday (27). Parliamentarians will evaluate the report by Senator Tasso Jereissati (PSDB-CE) on the government proposal that aims to reduce legal disputes between companies and the tax authorities. The MP has already received 215 amendments.

In addition to encouraging the debtor to give up administrative or judicial proceedings on tax debts, the provisional measure authorizes the Executive Branch to update rates administered by 11 federal fees, including the registration of firearms, health surveillance and inspection of civil aviation. According to the government, some of these rates have been uncorrected for 17 years.

In September, the commission made a public hearing on the topic, when some panelists suggested improvements to the program. The mixed commission is chaired by deputy Gabriel Guimarães (PT-MG). The vice is Senator Acir Gurgacz (PDT-RO).

Source: Agência Senado (23/10)

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