On October 17, 2023, the 3rd panel of the Superior Court of Justice (STJ) handed down a decision that marked a significant change in the interpretation of the need for tax compliance in order for judicial reorganization to be granted. The decision in question refers to Special Appeal No. 2.053.240/SP.
Prior to this, the prevailing view in the STJ was that it was not necessary to present proof of tax good standing in order for judicial reorganization to be granted. Even after the changes introduced by Law 14.112/2020, which simplified the conditions for settling federal tax debts, the Superior Court maintained this interpretation.
However, in the judgment of Special Appeal No. 2.053.240/SP, the third panel of the STJ changed its understanding, requiring proof of tax regularization as a condition for granting judicial reorganization.
The decision had Justice Marco Aurélio Bellizze as rapporteur, and he pointed out that Law 14.112/2020 facilitated the regularization of federal tax liabilities, which justifies the requirement to prove this tax regularization as a condition.
As a result, the third panel of the STJ ruled that the company must provide proof of its tax compliance as a requirement for obtaining judicial reorganization. In the event of failure to provide proof of regularization, the judicial recovery process will be suspended and actions and executions against the company can continue.
This change in interpretation represents a significant change in the way tax compliance is dealt with in judicial reorganization proceedings and will have a considerable impact on companies seeking this legal measure to restructure their finances.
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