One more demutualisation case has been recently judged by the Administrative Board of Tax Appeals (Conselho Administrativo de Recursos Fiscais - CARF). This time the discussion approached the requirement of contribution to the PIS and COFINS over the disposal of shares acquired by the Santander Group brokerage firm in the demutualisation operation. The decision, favorable to the taxpayer, was emphatic where it concluded, first, that the actual case implied not only an exchange of assets – exchange of equity shares for shares of the BOVESPA Holding, which were duly allotted to the “investments” account of the company´s permanent assets. In this context, it noted that notwithstanding the fact that the disposal of such shares, in fact, had occurred in a subsequent occasion, it was not the company´s intention to acquire them to sell them, for which reason the amounts resulting from such operation could not have operational nature and, therefore, the Tax Authority´s intent with respect to the taxation of the PIS and COFINS, according to the terms of art. 3, IV, of Law n° 9.718/98, was dismissed.

(Panel Decision nº 3403-001.734. Available at: <>. Access in: Jan. 2013).