The First Panel of STJ started to judge on 11.26.2013 a special appeal filed by Vale S/A against the National Treasury. The suit deals with the legality of charging IRPJ and CSLL on the profit of foreign companies related to the Brazilian mining company in Belgium, Denmark and Luxembourg, with which Brazil has treaties to avoid double taxation. According to media specialized in the financial market, this suit involves 30 billion Brazilian Reals.

Reporting Justice Napoleão Nunes Maia Filho acknowledged the illegality of the charge. To him, the treaties were internalized by means of decrees and OECD model is followed by all members, including Brazil. He emphasized that the Second Panel of STJ already decided on the prevalence of international tax treaties over internal rules, not due to a legal hierarchy, but for being more specific. The reporting Justice understands that these treaties forbid the charge as intended by Brazilian Government.

After the reporting Justice voted, Justice Sérgio Kukina disagreed and denied relief to the appeal. To him, there is no conflict between national legislation and the treaties executed by Brazil with those countries. The judgment was interrupted because Justice Ari Pargendler requested to see the records.

(Appeal in Lawsuit No. 18919. Available at: <>. Accessed in: Nov., 2013).