Client Alerts

PGFN enables Request for Registered Debt Review in compliance with Law No. 14,689/2023

October 10th, 2023

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Following the publication of Law No. 14,689/2023, resulting from the partial sanction of the CARF Bill (Bill No. 2,384/2023), the National Treasury Attorney-General’s Office (“PGFN”) has enabled an option in its “Regularize” system to request the reexamination of debts decided by the tie-breaker vote in favor of the National Treasury in the Administrative Council of Tax Appeals’ (“CARF”).

The Request for Registered Debt Review (“PRDI”) must be based on tax liabilities (i) expressly established by CARF as a result of a decision in favor of the National Treasury by a tie-breaker vote, and (ii) cannot have been subject to a judgment by the competent Federal Regional Court (“TRF”), considering the following practical effects:

Legal grounds

Cases in which this PRDI is possible

Effects

Art. 15 of Law No. 14,689/2023

Tax liabilities decided in favor of the National Treasury by a tie-breaker vote until January 12, 2023, whose merits are pending judgment by the competent TRF on the date of publication of the law (September 21, 2023).

Cancellation of fines provided for in articles 44 and 61 of Law No. 9,430/1996.

Art. 16 of Law No. 14,689/2023

Tax liabilities decided in favor of the National Treasury by a tie-breaker vote between January 12 and June 01, 2023.

Possibility of paying* tax liabilities** without interest provided that the taxpayer expressly their intention to settle the debt until December 20, 2023 (90 days as of the publication of Law No. 14,689/2023).

*In up to 12 installments, and with the option of using credits from tax losses and negative calculation basis of the Social Contribution on Net Income (“CSLL”).

**Applicable only to the part of the tax liability fully decided by CARF’s tie-breaker vote in favor of the National Treasury.

Concerning the first scenario above, the PGFN established that the cancellation of tax representation for criminal purposes, also addressed in article 15 of Law No. 14,689/2023, must be requested directly with the police authority, or the Public Prosecutor’s Office.

The PGFN clarified that, if applicable, the cancelation of fines remains applicable to the tax liabilities even if the taxpayer did not state in a timely its intention of payment to request the exclusion of interest mentioned in the second scenario above.

The deadline for analysis is 30 days as of the first working day after the PRDI is filed in the Regularize system, and the following must be submitted:

CARF’s unfavorable decision regarding the taxpayer by tie-breaker vote and the corresponding judgment date; and
certificate of the judicial lawsuit status, if any, filed by the taxpayer to challenge the tax liabilities.

The granted PRDIs will either require rectification of the Overdue Federal Liabilities Certificate or the suspension of the tax liability’s enforceability. In contrast, the PRDIs that were either submitted without the required documentation or grounded in matters that have already been resolved in judicial court – in an unfavorable way to the taxpayer – will be considered as delaying proceedings and automatically rejected.

For more information on the changes provided for in Law No. 14,689/2023 involving the tax sector, access our client alert and infographic on the topic.

Demarest’s Tax Team is monitoring the latest news on the theme and remains available to provide any necessary clarifications.