Legal Update

In order to standardize the decisions handed down by the ordinary chambers, the Superior Chamber of the Tax Court of São Paulo (Tribunal de Impostos e Taxas do Estado de São Paulo – TIT/SP) approved, at its session held on August 31, four new Precedent Statements that will serve as basis for future judgments on subjects discussed before the administrative court. Three of the statements deal with issues related to the use of ICMS credits, while one deals with the updating of the amount of tax liability charged by a tax assessment. The matters dealt with in the statements are as follows:

  • Summary 09 – statute of limitation of tax assessments in cases related to improper use of credits;
  • Summary 10 – interest rates applicable to the tax and fine;
  • Summary 11 – write-off of ICMS credits related to illegitimate tax benefits;
  • Summary 12 – booking of credits in operations whose subsequent exit is benefited by reduction in the taxable base.

The approval of the new statements is not only an important tool to speed up the resolution of disputes between taxpayers and the tax authorities, but also serves as a guide in the interactions between the Treasury and taxpayer. However, the new statements governing certain matters by the TIT/SP does not prevent taxpayers from discussing the subject both at the administrative level as well as before the Courts.