Breaking news for companies that have been fined with higher penalties than the amount of taxes due.
Brazil’s Supreme Federal Court recognized the general repercussion of an appeal concerning the possibility of imposing a punitive fine exceeding 100% of the tax due. The Plenary of Brazil’s Supreme Federal Court (STF), in a unanimous decision, submitted the Extraordinary Appeal (RE) 1335293 to the systematic of general repercussion (Theme 1,195).
This decision and the future judgment of the referred Extraordinary Appeal, when discussing general repercussion, will directly affect the fines applied in notices of infraction of any nature – federal, state, municipal – and may maintain or reduce the contingencies not yet judged, both in the administrative and judicial phases.
Companies that have been fined and for any reason have collected the taxes, plus a fine higher than the value of the principal, may, after the decision of Brazil’s Supreme Federal Court, in the sense of its unconstitutionality, and not after the period of 5 (five) years, request the refund of the excess of the fine applied.
Therefore, companies should keep monitoring this fact, so that the tax statute of limitation does not occur.
Our team of tax lawyers will answer all your questions.
We are fully available for a conference call on the matter and arrange immediate filing of the claim.
For further information contact: Fernando Giacon Ciscato (fernando.ciscato@ronaldomartins.adv.br), tel: (11) 3066-5935/ (11) 94537-5906 and Renato de Andrade Bento (renato.andrade@ronaldomartins.adv.br), tel: (11) 3066-4817/ (11) 99129-2375.
