Priscila das Neves Crusco
Lawyer at Marcos Martins Advogados
In a recent decision, the Single Court of the District of São Simão[1] granted interim relief to determine that a company undergoing Judicial Recovery should not be excluded from tax installment plans – PERT and PRR. In this case, the installment payments were up to date and the threat of exclusion was due to the existence of new tax debts, a hypothesis for exclusion provided for in the legislation.
The Recovering Companies claimed that their exclusion from the aforementioned installment plans would result in an increase in liabilities of more than R$ 230 million, which would make it impossible to preserve economic activity, harming everyone involved, including the tax authorities themselves, who would certainly not receive their credit in full.
Thus, when analyzing the documentation submitted, the amounts involved and the very nature of the Judicial Recovery request, the Magistrate understood that maintaining the companies in the installment plan is a measure that is imposed, since this decision, in addition to being reversible, does not harm the Tax Authorities, since their credits are maintained, however, under the conditions agreed between the parties.
Even though this is a first instance injunction, it sets an important precedent for companies in reorganization to exploit.
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[1] TJSP. Case No. 1001008-13.2019.8.26.0589.
