Alana Dahrouj
Lawyer at Marcos Martins Advogados
The Federal Supreme Court has removed from its agenda the discussion on the modulation of the effects of the decision on the collection of social security contributions on vacation pay, which was due to take place on August 7.
The discussion to be dealt with in this judgment refers to the modulation of the effects of the decision handed down in August last year, when it was decided that the third of vacation pay should be included in the basis for calculating the social security contribution.
The judgment on the modulation of effects is extremely important for companies, as it will define whether or not the tax authorities can collect the amounts that were not paid before the August 2020 decision.
Before being withdrawn from the agenda, the modulation of effects trial had five votes in favor of taxpayers, against four in favor of the tax authorities, however, when it is restarted the score will be reset to zero, allowing for a possible change in understanding.
It is estimated that this discussion could cause an overall impact of around R$100 billion for companies that have failed to pay the contribution, and with this in mind, the postponement of the trial could be an opportunity for these companies to plan how to adjust the debt to their cash flow.
Marcos Martins Advogados makes its tax team available to answer any questions on the subject.
