The Special Administrative Charging Scheme, defined as the one that will be dealt with on a priority basis, was created by the Administrative Ruling No. 1,265/2015 and refers to taxpayers whose total amount of collectable tax credits is equal to, or higher than, BRL 10 million. Despite this objective criterion, the Administrative Ruling authorizes the Federal Revenue Office to include other tax credits in the Special Administrative Charging Scheme.
If, after been notified, the taxpayer does not pay or suspend payment of the tax credits included in the Special Administrative Charging Scheme, the following measures, among others, may be imposed:
- Inclusion in the CADIN (Register of Outstanding Credits kept by Federal Agencies and Entities);
- Exclusion of the taxpayer from the REFIS, PAES and PAEX tax instalment payment programs;
- Exclusion of the taxpayer from the SIMPLES NACIONAL (Simplified Federal Tax Regime);
- Filing of a Tax Brief for Criminal Purposes with the Public Prosecution Office;
- Application of a fine to the Company, its Managers and other Senior Management’s members;
- Listing of assets and rights in order to monitor the property of the relevant taxpayer;
- Reporting the default to the Brazilian Regulatory Agencies in order to revoke the authorization for the performance of commercial activities in cases where the taxpayer holds a Concession or Permission for the provision of public services;
- Reporting to public banks in order to prevent the extension of credit derived from public funds, including the installments of facilities that have not been disbursed yet;
- Reporting for the purpose of seeking relief in court; and
- Declaration that the taxpayer is as “ineligible” for any taxpayer that has not been located twice in notices sent in connection with the Special Administrative Charge Scheme due to incorrect information in the RFB register.
In case the tax credits are not paid or suspended after the application of the above mentioned measures, such credits will be referred to the National Treasury Attorney’s Office for inclusion as immediately enforceable debts.