PGFN Regulates Use Tax Credits Granted In Judicial Proceedings To Offset Federal Tax Debts

• Published date: 28 December 2022
• Subject Matter: Finance and Banking, Tax, Debt Capital Markets, Financial Services, Tax Authorities
• Law Firm: Koury Lopes Advogados
• Author: Mr Henrique Lopes, Victor Polizelli, 'lvaro Lucasechi, José Fl'vio Pacheco, Juliana Nunes, Luís Fl'vio Neto, Felipe Omori, Jefferson Souza and Bianca Colnago

On December 21, 2022, the Attorney General's Office of the National Treasury ("PGFN") published the Ordinance n. 10.826, which regulates the procedures for taxpayers to use tax credits recognized in unappealable judicial decisions, formalized in "precatórios" (court order for payment), to offset or amortize outstanding federal tax debts.

Highlights of this new regulation are:

• the authorization to use debts acquired from third parties;
• the possibility of using these credits to pay or amortize debts included in installment programs or transaction negotiation and
• the provision that the claim to offset does not automatically release the judicial deposits made in guarantee to the debts to be offset.

The offer of credit must be made upon request on the REGULARIZE Portal (website of the Attorney General's Office of the National Treasury), along with other documents listed in the Ordinance, among which is the Certificate of The Net Amount Available for the purpose of Using Credit in special judicial order ("CVLD") to be issued by the Court, to prove the amount of the credit, and the domain chain upon the amounts.

The request will be reviewed by the competent sector of the PGFN, and taxpayers will be given the opportunity to justify or correct any divergence. With the formal acceptance of...