The National Council of Justice (CNJ) recently issued a normative act determining the extinction of tax debts with a value of up to R$10,000.00. The rule applies to cases that have not been dealt with in the last 12 months, provided that no attachable assets have been found, whether or not the defendants have been summoned.
According to the president of the CNJ, Luís Roberto Barroso, around 52% of tax foreclosures are in the same situation. In general terms, tax foreclosures account for 34% of judicial actions.
The Federal Supreme Court (STF) had already ruled, in a general repercussion case, that low value tax debts could be extinguished. Therefore, the CNJ’s regulation comes to give more precise contours to the matter judged.
With the regulation, the need to protest the enforcement order and attempt to reach an agreement were established as conditions for initiating enforcement action, as the STF had already decided.
With these measures, the CNJ is seeking to reduce the costs generated by tax foreclosures, which collect less than 2% of the amounts collected, while protests have shown a success rate of more than 20%.
By complying with the rule, taxpayers will be able to seek compliance with the extinction of low-value foreclosures. This will make it possible to reduce their liabilities and the number of active cases in the courts.
If you have any questions on the subject, our tax team is at your disposal.
