During the session of April 23, 2013, 2nd Chamber of 2nd Ordinary Panel of Federal Administrative Tax Court, by the President’s vote, denied relief to a Voluntary Appeal filed by Alfa Corretora concerning the imposition of PIS and COFINS on the alienation of shares under a demutualization scope.

Notwithstanding the defeated vote having understood that these taxes do not impose on these amounts, since the mere modification of the corporate format of titles does not result in the reallocation of these assets from capital asset to current asst, the vote of the Reporting Counselor won, to the extent that the revenue resulting from the alienation of these titles is taxable, since this activity corresponds to the operational activity of the assessed company.

In summary, the Reporting Counselor showed that the demutualization modified the legal nature of these titles, since before this transaction, there titles were essential to the operation in the stock exchange; thus, its maintenance in capital assets was reasonable. However, after the demutualization, the shares corresponding to non-profitable associations were returned to investors by their substitution for corporations titles – Bovespa Holding S.A. and BM&F S.A. – and they became negotiable from then on, which allowed their registration as current assets.

(Decision 3202-000,713. Available at: http://carf.fazenda.gov.br/sincon/public/pages/ConsultarJurisprudencia/listaJurisprudenciaCarf.jsf. Accessed in June, 2013).