Provisional Measure allows negotiation of tax debts between taxpayers and the Federal Government!

The executive order signed by the head of the executive branch on October 16, 2019, allows taxpayers and the Federal Government to negotiate tax debts, encouraging regularization and resolution of tax disputes between the Federal Tax Administration and those who owe taxes.

The goal is to reduce litigation and facilitate the collection of debts considered difficult to recover.

The rule will provide for a tax transaction, which, under the aegis of article 171 of the National Tax Code, will allow taxpayers and the Attorney General's Office of the National Treasury (PGFN) to negotiate, for example, longer payment terms for debts or even grant discounts on legal surcharges arising from the amounts due.

The discounts offered can reach up to 50% on the total debt, and may increase to up to 70% in the case of individuals, micro or small businesses.

According to the established rules, payment can be made in up to 84 months (7 years), while micro or small businesses can extend it up to 100 months (just over 8 years).

The transaction will be granted for debts under discussion in both the judicial and administrative spheres, as well as those already registered as outstanding debt.

It is important to highlight that the Provisional Measure will only cover federal taxes, notably PIS, COFINS, IPI, Social Security Contribution, Income Tax, CSLL, and Import Tax.

It is worth seeking information to learn more about the possibilities applicable to taxpayers who find themselves in the stipulated situations, which is of utmost importance to those who fall under the "Second Chance Provisional Measure," as mentioned by the President of the Republic.

Source: GLOBE

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