Chamber may expand refills for large companies and puts economy on alert

Minister Paulo Guedes’ team (Economy) became alert to the possibility of the Chamber of Deputies significantly expanding the scope of the debt renegotiation program with the Union, Refis, which is being discussed in Congress.

The changes could favor large debtor companies, with generous discounts on fines and interest, even though they made a profit during the Covid-19 pandemic.

In the previous version, the program granted the greatest benefits to companies that faced difficulties in the crisis.

A preliminary opinion of the rapporteur, deputy André Fufuca (PP-MA), to which the leaf had access, indicates the direction of the changes and triggered the yellow light at the Ministry of Economy.

The technicians in the economic area of ​​the Jair Bolsonaro (PL) government are still calculating the size of the resignation, which should be in the billions. The program is rated “much worse” than what the Senate had passed.

Wanted by the report, Fufuca confirmed that he intends to expand access to the program, but said that the text is still being negotiated with Chamber leaders to be voted on this week. Therefore, it can undergo changes until it is officially filed.

The rapporteur also questioned the damage pointed out by technicians in the economic area.

“How can you claim that these companies will be able to pay if not through Refis, the conditions we are creating? If they cannot pay, therefore there will be no collection, the federal government will not receive this resource. So what are you missing?”, said Fufuca.

Under the LRF (Fiscal Responsibility Law), however, the granting of discounts or the use of tax loss credits to offset the outstanding balance are considered revenue waivers.

The preliminary version of the opinion gives all taxpayers the same treatment in terms of benefits and installment conditions, regardless of their financial situation.

“We want to democratize access to Refis, avoid future legalization, understand the current scenario of the pandemic, in which several companies are experiencing difficulties. Which company currently has 30% of what it owes to pay upfront? So it’s more or less in this direction”, stated the rapporteur.

The text provides for the possibility of renegotiating debts with the Union upon payment of a down payment of 5% of the amount owed.

Fufuca said that the final percentage could be higher, 10% of the debt. Even so, the value is below the one approved by the Senate, which ranged from 2.5% to 25%, depending on the degree of damage suffered during the pandemic.

The objective was to prioritize the most affected taxpayers and avoid granting excessive advantages to persistent debtors.

Even at the height of the crisis, many companies paid taxes without discounts, on time or with extended deadlines thanks to deferrals granted by the government in 2020 and 2021.

For this reason, the text negotiated with the senators even allowed taxpayers without a drop in revenue to join Refis, but through the disbursement of a higher down payment (25% of the debt) and with access to less generous discounts.

Fufuca’s preliminary opinion, in turn, provides not only for a lower down payment, but also linear discounts of 70% in interest and fines and 100% in legal fees and charges.

The text also allows the settlement of the remaining balance using tax credits obtained when there is a tax loss or a negative CSLL (Social Contribution on Net Income) tax base.

Another article gives even more favorable trading conditions. The provision allows full settlement of the debt with tax loss credits or negative CSLL calculation basis, after discounts of 90% in interest and fines and 100% in charges.

Ultimately, companies in good financial condition, but with tax losses accumulated on their balance sheets, could use them to pay off debts without paying a single cent.

Fufuca, however, denied that he would allow the indiscriminate use of credits to reduce debts.

“There is a limit for the tax loss, both in the transaction [tributária, outra modalidade de negociação] as in Refills. Some limits will be changed, but it will not be 100%, otherwise the Union will not collect anything”, said the rapporteur.

In the text of the Senate, the limit for the use of tax loss credits ranged from 25% to 50% of the remaining balance, after payment of the down payment.

The economic area sees the preliminary text as a fiscal bomb and classifies the design prepared by the Chamber as the most aggressive Refis ever.

In the renegotiation program created in 2017, the use of tax loss credits to offset debts was also allowed, but there was a higher percentage of down payment, to be paid in cash.

The possibility of accumulating discounts and using tax loss credits, in turn, was limited to taxpayers with debts of less than R$15 million.

Now, large taxpayers would have access to unprecedented conditions in a debt renegotiation program with the Union. The broad scope of the measures has even made it difficult for technicians to estimate the size of the damage.

The text approved by the Senate was already more benevolent than the Ministry of Economy intended, but it still preserved some crucial principles, such as the gradualness of discounts, depending on the size of the loss of revenue or income.

The original proposal of Refis was presented by the president of the Senate, Rodrigo Pacheco (PSD-MG), still in 2020.

The argument is that the effects of the pandemic left companies and individuals in a difficult situation, which requires a renegotiation of debts with the Union.

If the Chamber goes ahead with the amendment proposals, the text will need to be voted again by the Senate. There is pressure from companies interested in the program for the refinancing to be implemented soon.

The rapporteur was optimistic with the quick approval in both Houses. “It is a national demand,” he said.