2023-09-18 03:00:12
BRASILIA (Reuters) – The government expects to receive in 2024 around 10% of the amounts that will be judged by the Tax Appeals Administration Council (Carf) throughout the year, said Finance Minister Fernando Haddad in an interview with the Canal Livre program , from the Bandeirantes network, highlighting that the proportion is in line with the historical average.
The value of the revenues foreseen in the 2024 budget project with the Carf trials is 54 billion reais, but Haddad stated that the estimate is that the council will take to trial cases totaling between 500 and 800 billion reais, indicating that the revenue effectiveness may be even greater.
“We are counting on 10% of the trials scheduled for next year. Because we have a stock of 1.3 trillion reais. We want to judge between 500 and 800 billion reais by next year. Why is this possible? Because Since we lost the quality vote back there, in the Bolsonaro government, the trials at Carf have stopped”, said Haddad in the interview, recorded on Thursday and broadcast this Sunday.
“Carf’s history is that 10% of the judged values enter the Treasury’s cash flow per year.”
This year the government managed to approve in Congress a new change in legislation to resume the casting vote in Carf — that is, in the event of a tie in the collegiate’s decisions, the Executive has the casting vote. With this, says Haddad, the votes will be unlocked.
The minister revealed that there are now more than 100 thousand processes in Carf, but only 126, from large companies, correspond to 600 billion reais. The government’s bet is that, with the change in legislation, which also introduced benefits for companies that close processes without judicialization, there should be a faster solution.
“The Carf law provides companies that are eventually convicted by the quality vote with a very large benefit, which is a reduction in fines and charges. We understand that this value (of judgments in 2024) could even be exceeded,” said Haddad.
He also highlighted that, if companies take Carf decisions to court, they need to deposit the tax due in court and the resources are accounted for as primary revenue, contributing to the fiscal result.
The minister even compared the change in Carf to a “Desenrola” for companies, citing the program created by the government to renegotiate debts for the low-income population with reduced interest and charges.
“Carf is already a Desenrola. Not only did he restore the quality vote, he also created procedures that were not foreseen in the legislation. Tax litigation will drop significantly”, the minister bets.
The government sent next year’s Budget project to Congress, predicting a primary surplus of 2.8 billion reais, a balance that includes revenues of 168.5 billion reais from new fundraising actions proposed in recent months, including measures not yet approved by Congress, which raised questions from experts.
Haddad considered that so far the economic team has managed to fulfill its action schedule, with the sanction of the new fiscal framework and the advancement of tax reform, and the expectation is for the approval of the new measures already forwarded to Congress.
(Reporting by Lisandra Paraguassu)
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