Tax arbitration in Brazil is subject of online debate

This arbitration model aims to prevent tax conflicts by solving factual issues, before the formalization of tax assessments. It may also “settle conflicts that precede constituted tax credits” in two hypotheses that “involve factual and technical matters: tax consultations and quantification of credits recognized in court and subject to offsetting”.
Law
04 May 2021
Tax arbitration in Brazil is subject of online debate

The Professional Master’s Tax Law Center at Fundação Getulio Vargas’ Sao Paulo Law School, as part of a research area called “Alternative (or Appropriate) Methods of Dispute Resolution and Tax Law: Limits and Challenges,” will hold a free webinar on bills 4,257 of 2019 and 4,468 of 2020, presented in the Senate, which aim to introduce tax arbitration in Brazil, on Friday, May 7, at 9 am.

Bill 4,257 of 2019, authored by Senator Antônio Anastasia, states that it is “the result of work carried out by the Federal District Attorney General’s Office, the Federal Senate’s Consulting Office and Anastasia’s legislative advisors. It is designed to permit tax arbitration by amending the Tax Foreclosure Law, involving changes to tax credits and debt guarantees, in line with Arbitration Law, with the exception of some points specifically regulated by the bill. In this model, arbitration is focused on dispute resolution concerning tax disputes, actions to annul tax declarations and consignment actions.

Bill 4,468 of 2020, authored by Senator Daniella Ribeiro, in its proposal section, written by Heleno Taveira Torres, Selma Maria Ferreira Lemes and Priscila Faricelli de Mendonça, would create “special tax arbitration” with a specific timeframe, prior to tax credits (that is, completely the opposite of Bill 4,257 of 2019, when considering the way tax credits are constituted).

This arbitration model aims to prevent tax conflicts by solving factual issues, before the formalization of tax assessments. It may also “settle conflicts that precede constituted tax credits” in two hypotheses that “involve factual and technical matters: tax consultations and quantification of credits recognized in court and subject to offsetting”.

The webinar aims to discuss the proposals contained in the bills and present ideas and suggestions for their improvement and possible combination. It is therefore intended to contribute to the effective implementation of tax arbitration in Brazil.

To take part, please sign up here.

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