The State of São Paulo is expecting to recover up to 4 billion of ICMS not paid in the last ten years. Most of these revenues result from the ICMS Special Term Payment Program (Programa Especial de Parcelamento - PEP) of the State of São Paulo.

In summary, the tax benefits granted by the PEP ensure the taxpayer the payment of his ICMS debts with a reduction of the interest and fine for payments in up to 120 installments. The reductions may correspond to 50% of the fine and 40% of the interest.

If the taxpayer chooses to make a down-payment, the fines will be reduced by 75% and the applicable interest by 60%.

(DCI - Diário Comércio Indústria Serviços, Apr. 24, 2013, p. A3).