2023-07-07 22:45:48
© Reuters. Plenary of the Chamber of Deputies 12/21/2021 REUTERS/Adriano Machado
BRASILIA (Reuters) – The Chamber approved on Friday the main text of the project that resumes the government’s tie-breaking vote on decisions of the Administrative Council of Tax Appeals (CARF), the body responsible for adjudicating tax disputes, paving the way on the agenda of the House for voting on the new fiscal framework and offering conditions to the government to close the 2024 Budget.
Deputies approved the main text of the proposal in a symbolic manner and, in a quick vote, proceeded to analyze the highlights.
The text that follows the Senate resumes the casting vote, but, by incorporating an agreement closed with the Brazilian Bar Association (OAB), provides for a reduction in fines and interest in cases of tiebreakers in favor of the Union.
The main theme of the project had initially been proposed to Congress by the government via a provisional measure, but in the face of an impasse over the processing of MPs in the Legislative, the Executive resubmitted the proposal in the form of a bill on an urgent basis — which is why she started to block the agenda of the Chamber.
In January, during the validity of the MP, the OAB presented a Direct Action of Unconstitutionality to the STF, asking for the immediate suspension of the effects of the measure.
At the time, the entity considered that the absence of the casting vote prevented decisions that were always favorable to the Public Treasury in cases of a tie. The end of the mechanism implied an automatic benefit to taxpayers, he argued.
Subsequently, the OAB closed an agreement with the Ministry of Finance and accepted the return of the tie-breaking vote, provided that some assumptions were met, such as the exclusion of fines and interest in some cases.
“Although the National Congress is not bound by the terms of the referred agreement, it seems convenient that the solutions presented by the main actors of the public sector and the interested economic segment of the matter be taken into account”, said the rapporteur, Beto Pereira (PSDB-MS ), in plenary, when reading its opinion.
“Therefore, our position is that, in cases of tie by judgment carried out by CARF, the Public Treasury must have the casting vote. However, the tax credit constituted under such condition must receive special and favored treatment”, he added.
The Minister of Finance, Fernando Haddad, assesses that the Carf project and the new fiscal framework are important to close the 2024 Budget.
The Chamber threatened not to vote on the Carf project this week, but after negotiation, the government managed to get the deputies to address the matter this afternoon, after concluding the analysis of the tax reform.
The possibility of voting on the framework was announced this Friday, but according to the mayor, Arthur Lira (PP-AL), the matter will be left for August.
“The framework project, unfortunately today the deputy rapporteur (Cláudio) Cajado (PP-BA) is not in Brasilia, nor did he make the text available — of course our focus all week was the tax reform — and should be left to August”, said the president of the House to CNN Brasil.
(Reporting by Maria Carolina Marcello; Writing by Maria Carolina Marcello)
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