(dr) Laura Haanpaa
From March, taxpayers with pending cases in the first instance of administrative and tax courts for over 4 years can recover the guarantees given. A wave of orders is anticipated.
From February 28, taxpayers with tax proceedings pending more than four years in the Administrative and Tax Courts (TAF) may Request the forfeiture of the guarantees provided. The measure stems from a change to the Code of Tax Procedure and Procedure (CPPT), approved in 2021, which now begins to produce effects.
Specialized lawyers already prepare requirements to request the return of these guarantees, anticipating a high search with the courts.
The legislation determines that if an challenge or tax opposition is not decided in the first instance within four years, Warranty provided by automatically. This standard recovers a regime that had been revoked in 2007 and aims to reinforce taxpayer rights, explains the.
However, the Tax and Customs Authority (AT) initially interpreted that the deadline would only begin after the law’s entry into force, on February 27, 2021. The Supreme Administrative Court confirmed this interpretation, which means that the first requests Warranty lifting can only start formalized now.
The question is relevant because many guarantees represent high values. Among the main mechanisms used are bank warranties – which imply commissions – and caution or deposits of litigation with finances, which could be generating income.
Other alternatives include mortgages on real estate or pledges of goods and rights. “In most cases, AT prefers bank guarantees or mortgages,” explains Suzana Costa, an inspector at ACM Advogados.
For the warranty to be raised, the taxpayer needs to submit an application to the TAF where the process is being processed. The decision is up to the judge, who can refuse the request only if identifying “a risk of serious damage to the state” and may extend the warranty for another two yearsprovided that it presents a reasoned justification.
According to data from the Ministry of Justice, in late 2023 there was 29 615 pending tax processes In TAF, with an average duration of 41 months. With the new standard in force, the courts are expected to decide faster, functioning in practice as a procedural acceleration mechanism.
