PGFN announces public consultation on offering and accepting performance bonds for tax debts

On September 13, 2024, the Office of the General Counsel for the Federal Treasury (“PGFN”) launched Public Consultation Notice 13/2024 (“Notice 13/2024”), seeking suggestions for improving the draft of a new ordinance on offering and accepting performance bonds to cover tax debts within the scope of the PGFN.

The proposal aims to align the regulation to the needs verified by regulatory innovations in recent years and to replace PGFN Ordinance 164/2014, which currently regulates the matter. The proposal was drafted following consultations with important entities involved in the insurance sector, such as the National Confederation of Insurers (“CNseg”), the National Federation of General Insurance (“FenSeg”), and the Superintendence of Private Insurance (“SUSEP”).

The main changes to the current regulation, according to the provisions of Notice 13/2024, are highlighted below:

• Provision of standard policy models, which are indicated in the annexes to the draft to improve and standardize the procedure for accepting and offering bonds, seeking to guarantee the security of the operation.
• Increase in the minimum validity period, from two to five years, for the policy in the case of tax execution.
• Inclusion of a specific provision regarding co-insurance, which establishes that the policy must state that there is no joint and several liability and identify the lead insurer and the other insurers involved, together with their respective insured limits.
• A new performance bond policy or the renewal of an existing policy must be submitted to the PGFN before the end of the validity period, but is no longer required to be submitted at least 60 days before the end of the validity period.
• In the case of tax execution, non-payment losses will be characterized within 15 days of notification of the final and unappealable decision on the merits.

Interested parties can submit contributions by September 30, 2024, using the electronic form available on the PGFN portal, according to the guidelines available in the published notice. The documents relating to the public consultation are also available in full on the PGFN’s website.

For more information, access:

Notice 13/2024 in full.

Draft ordinance in full.

Demarest’s Tax and Insurance, Reinsurance, Health and Private Pension teams are monitoring the developments of this public consultation and remain available to provide further clarifications.