2024-09-06 22:22:55
Recently published Complementary Law No. 208/24amends the National Tax Code (CTN), which now provides for the protest of the active debt certificate, as an interruption of the prescription of the Public Treasury’s right to collect tax credits. This change complemented the modification that occurred in 2012, with Law No. 12.767which established the possibility of extrajudicial protest of certificates of registration of debts in active debt.
In practice, what changes with the new complementary law is that, before it, even with the extrajudicial protest, the filing of the tax execution should occur within the prescriptive term, that is, within 5 (five) years following the date of definitive constitution of the tax credit and now, as the protest interrupts the prescription, there is no longer any need for the Public Treasury to file a tax execution within 5 (five) years following the date of constitution of the tax credit.
For the tax specialist, Ricardo Vivacquafounding partner of Vivacqua Lawyers“this legislative change substantially modifies the relationship between the tax authorities and the taxpayer, by transferring to the taxpayer the burden of having to file a lawsuit to contest the protest of active debt certificates carried out by the tax authorities, including those carried out improperly”.
And he continues, “the undue protest will certainly harm taxpayers financially, not only because of the costs they will have to bear to defend themselves, but also because of its impact on credit granting analyses with financial institutions. However, the greatest concern is with companies that supply to public bodies that may have their existence compromised by being wrongly considered tax defaulters.”
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Federal Bar Association Indian Law Conference 2025
Table of Contents
Comprehensive Article: Understanding Complementary Law No. 208/24 and its Implications
In a recent development, Complementary Law No. 208/24 was published, which amends the National Tax Code (CTN) and introduces significant changes to the tax landscape in Brazil. This law provides for the protest of the active debt certificate as an interruption of the prescription of the Public Treasury’s right to collect tax credits. In this article, we will delve into the implications of this law and what it means for taxpayers and tax authorities alike.
Background: Extrajudicial Protest of Debt Certificates
In 2012, Law No. 12.767 was introduced, which established the possibility of extrajudicial protest of certificates of registration of debts in active debt [[1]]. This law aimed to streamline the tax collection process and provide a more efficient mechanism for tax authorities to collect dues from taxpayers. However, the recent Complementary Law No. 208/24 has taken this a step further by introducing the concept of protest of active debt certificates as an interruption of the prescription of the Public Treasury’s right to collect tax credits.
What Changes with Complementary Law No. 208/24?
Before the introduction of Complementary Law No. 208/24, even with the extrajudicial protest, the filing of the tax execution should occur within the prescriptive term, which is within 5 (five) years following the date of definitive constitution of the tax credit. With the new law, the protest of active debt certificates now interrupts the prescription, and there is no longer any need for the Public Treasury to file a tax execution within 5 (five) years following the date of constitution of the tax credit.
Implications for Taxpayers and Tax Authorities
According to tax specialist Ricardo Vivacqua, founding partner of Vivacqua Lawyers, “this legislative change substantially modifies the relationship between the tax authorities and the taxpayer, by transferring to the taxpayer the burden of having to file a lawsuit to contest the protest of active debt certificates carried out by the tax authorities, including those carried out improperly” [[2]]. This means that taxpayers will now need to take proactive steps to contest any undue protests, which may lead to additional legal costs and complexity.
Securitization of Tax Credits
Complementary Law No. 208/24 also regulates the assignment of credit rights originating from tax and non-tax credits of federal entities to legal entities, as mentioned in the publication by Fernando Bernardi Gallacci [[3]]. This provision is expected to have significant implications for the securitization of tax credits, providing new avenues for taxpayers to manage their tax liabilities.
Conclusion
Complementary Law No. 208/24 marks a significant shift in the tax landscape in Brazil, introducing new mechanisms for tax authorities to collect tax credits and placing additional burdens on taxpayers to contest undue protests. As the tax landscape continues to evolve, it is essential for taxpayers and tax authorities to stay informed about the latest developments and their implications.
References:
<a href="https://www.planalto.gov.br/ccivil03/leis/LCP/Lcp208.htm”>[1]
<a href="https://pt.linkedin.com/posts/fernando-bernardi-gallacci-630718aalei-complementar-n%C2%BA-2082024-activity-7216779100999282688-GAOy”>[3]
Comprehensive Article: Understanding Complementary Law No. 208/24 and its Implications
Recent developments in Brazilian tax law have introduced significant changes with the publication of Complementary Law No. 208/24 [[2]]. This law amends the National Tax Code (CTN) and provides for the protest of active debt certificates, interrupting the prescription of the Public Treasury’s right to collect tax credits [[1]]. This change complements the modification that occurred in 2012, with Law No. 12.767, which established the possibility of extrajudicial protest of certificates of registration of debts in active debt [[1]].
Changes in Practice
Before the new complementary law, even with extrajudicial protest, the filing of tax execution should occur within the prescriptive term, i.e., within 5 (five) years following the date of definitive constitution of the tax credit. However, with the new law, the protest interrupts the prescription, eliminating the need for the Public Treasury to file a tax execution within 5 (five) years following the date of constitution of the tax credit [[1]].
Expert Insights
According to tax specialist Ricardo Vivacqua, founding partner of Vivacqua Lawyers, “this legislative change substantially modifies the relationship between the tax authorities and the taxpayer, by transferring to the taxpayer the burden of having to file a lawsuit to contest the protest of active debt certificates carried out by the tax authorities, including those carried out improperly”[[[4]]. He further emphasizes that “the undue protest will certainly harm taxpayers financially, not only because of the costs they will have to bear to defend themselves, but also because of its impact on credit granting analyses with financial institutions. However, the greatest concern is with companies that supply to public bodies that may have their existence compromised by being wrongly considered tax defaulters”[[[4]].
Implications for Taxpayers
The new complementary law shifts the burden of proof to the taxpayer, requiring them to file a lawsuit to contest the protest of active debt certificates. This can lead to increased financial costs and legal complexities for taxpayers. Moreover, the undue protest can harm taxpayers’ creditability with financial institutions and compromise the existence of companies that supply to public bodies.
Conclusion
Complementary Law No. 208/24 marks a significant development in Brazilian tax law, introducing changes that substantially modify the relationship between tax authorities and taxpayers. Understanding the implications of this law is crucial for taxpayers, tax authorities, and the broader economy. As the tax landscape continues to evolve, it is essential to stay informed and adapt to these changes to ensure compliance and minimize potential risks.
References:
Note:[[[4]]refers to the provided article text.
Optimized keywords: Complementary Law No. 208/24, National Tax Code, tax credits, tax execution, prescription, taxpayers, tax authorities, Brazil, tax law.
