The Federal Supreme Court (STF) unanimously decided that there is no general repercussion on the issue of the levying of PIS and COFINS on monetary correction and interest, represented by the Selic rate, in the repetition of tax debt (return of tax paid unduly or in excess).
The Court held that the matter in question involves the interpretation of federal laws (Laws 10.637/2002 and 10.833/2003) and not constitutional issues, so it will not judge the merits of the case, leaving the final decision to the STJ.
The discussion gained more prominence after the so-called “thesis of the century” was finalized, in which the STF decided that ICMS should not be part of the PIS/COFINS calculation base.
This is because many taxpayers sought to recover the amounts overpaid or unduly paid as PIS/COFINS. When these amounts are returned to taxpayers by way of a refund, offset or return of judicial deposits, they are increased by monetary correction and interest.
The tax authorities believe that the amounts received as monetary correction and interest are taxable income for PIS and COFINS purposes.
The issue was brought before the Superior Court of Justice (STJ) for consideration (Theme 1.237), and the Court held that the amounts received fall within the concept of gross revenue and should therefore be taxed. The ruling was unfavorable to taxpayers, but still awaits analysis of the appeal filed by FEBRABAN.
The STJ’s decision has not yet become final and taxpayers should keep an eye on the next developments in the case.
If you have any questions, our tax team is available for clarification and guidance.
