Panel SA: Tax auditors predict repercussions for states and municipalities with changes in Carf

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In favor of the return of the casting vote in CARF (Administrative Council of Tax Appeals), included in the new government’s economic package, Sinafresp (Union of Tax Auditors of the State Revenue Service of São Paulo) foresees reflections in the debate on the subject within the states and counties.

“The measure may reflect on the discussion of Bill 17/2022, pending in Congress, which intends to eliminate the casting vote also in the administrative courts of states and municipalities, always giving companies a win in the event of a tie in disputes” , says Sinafresp.

The return of the mechanism, which was extinguished in 2020 and serves as a tiebreaker in cases of tax disagreement between Revenue and taxpayers, displeases sectors of the business community, which have already appealed to Congress to overthrow it.

According to the government, the end of the casting vote generated losses to the Union of around R$ 60 billion per year and the return of the practice would be a way to reduce pending tax disputes at CARF, an idea that is contested by businessmen.

For Sinafresp, the themes judged by Carf involve “causes of large companies, whose victory does not always reflect the interest of society, but of specific sectors”.

Joana Cunha with Paulo Ricardo Martins and Diego Felix

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