The Brazilian Federal Revenue Service cannot impose a penalty of forfeiture on a foreign motor vehicle if the owner has dual residency and is a signatory to Mercosur.
This is the understanding of the Honorable Judge of the 17th Federal Court of the Judicial Section of the Federal District, in the case file of... Case No. 1022991-40.2018.4.01.3400, which partially granted the request made by the Plaintiff, declaring the penalty of forfeiture of his vehicle null and void, since Proof of dual residency through valid documentation.
“In the specific circumstances of this case, after due process, the plaintiff's dual domicile must be recognized, given the presentation of proof of domicile through a property lease agreement in Paraguay (pages 240 and 241), as well as the civil identity card and driver's license from that Mercosur member country (page 151), which, in accordance with the jurisprudential guidance of the Superior Court of Justice on the matter, precludes the application of the penalty of forfeiture of the property.”
It should be emphasized that this is the understanding already established by the Superior Court of Justice and, as could not be otherwise, since it is a modus operandi, it is totally ignored by the tax authorities.
Decision commented by Juliana Perpetual, Lawyer, graduated in Law in 2003 from the Centro Universitário das Faculdades Metropolitanas Unidas – FMU. Areas of expertise: Customs Law, Tax Law, and Criminal Law. OAB (Brazilian Bar Association): 242.614
