The CARF 2nd Panel of the 4th Chamber, after analyzing the amortization of premium in internal operations between companies of the Natura Group, upheld the opinion that such premium could not be object of a tax deduction because it lacked business purpose supporting the corporate operations carried out inside the group and also lacked effective disbursement that could justify the amortization.
This decision also emphasized the position of the Administrative Court with respect to the statute of limitation for the authority to question the taxpayer‟s assessment. This is so because one of Natura´s defense arguments was the lack of legitimacy of the tax assessment due to the statute of limitation, since it was issued in 2009 and concerns the operations that took place in 2000. The decision, however, confirmed the opinion that, in these cases, the statute of limitation term begins with the tax effects on the legal entity´s property, which, in the case at hand, began in 2004, when the company carried out the premium tax amortization.
(Panel Decision n. 1402-001-278).