Post by firoj8240 on Jan 10, 2024 23:59:18 GMT -5
On November 25th, Extraordinary Appeal 841,979 was judged by the Federal Supreme Court (STF), with general repercussions (Theme 756), one of the most anticipated tax issues in recent years. It was an assessment of the constitutionality of the non-cumulative system of PIS and Cofins, introduced by laws nº 10.637/02 and 10.833/03, under the argument that such Laws would have introduced a series of restrictions to the concept of input, which is one of the main defining criteria for the appropriation of input credits. The taxpayer requested, among others, the possibility of appropriating credits in relation to all inputs of goods and services into its establishments, so that the basis of contributions to PIS and Cofins would be the value added in its activities, in its meaning broader and unrestricted, without any limitation.
In this decision, it was stated that the system of non-cumulative PIS and Cofins provided for in the aforementioned legal commands is constitutional, with the extension of the concept of input being an infra-constitutional matter, reinforcing that the competence to regulate non-cumulative and the concept of inputs is hat the restrictions brought by the aforementioned Laws prevailed and consequently, the Union would have been fully successful, Betting Number Data but this is not what happened in its entirety. As you know, the extensionturing, production or provision of services process for the exploration of the taxpayer's economic activity. In our view, however, the position expressed by the STF has positive elements, especially for some economic segments such as, for example, retailers and wholesalers, as it gives strength to the understanding of taxpayers in these segments against the limiting vision imposed by the Revenue.
Federal, which, illegally, has disallowed the appropriation of credits on essential or relevant expenses incurred by these taxpayers because it considers that such activities do not have a manufacturing or production process. The winning thesis proposed in the rapporteur minister's vote makes it clear that the autonomy to regulate non-cumulative activity and, as a consequence, the extension of the concept of input must be guided by the principles of reasonableness,non-cumulative contributions to PIS and to Cofins. Understanding that retail activity is a simple process of buying and selling is to ignore the specificities and contours of the industry itself, as the exploration of this activity involves a huge range of efforts aimed at its full achievement, among them, huge expenses on marketing intelligence, technology, means of payment, logistics, inputs that are essential to the exercise of this activity.
In this decision, it was stated that the system of non-cumulative PIS and Cofins provided for in the aforementioned legal commands is constitutional, with the extension of the concept of input being an infra-constitutional matter, reinforcing that the competence to regulate non-cumulative and the concept of inputs is hat the restrictions brought by the aforementioned Laws prevailed and consequently, the Union would have been fully successful, Betting Number Data but this is not what happened in its entirety. As you know, the extensionturing, production or provision of services process for the exploration of the taxpayer's economic activity. In our view, however, the position expressed by the STF has positive elements, especially for some economic segments such as, for example, retailers and wholesalers, as it gives strength to the understanding of taxpayers in these segments against the limiting vision imposed by the Revenue.
Federal, which, illegally, has disallowed the appropriation of credits on essential or relevant expenses incurred by these taxpayers because it considers that such activities do not have a manufacturing or production process. The winning thesis proposed in the rapporteur minister's vote makes it clear that the autonomy to regulate non-cumulative activity and, as a consequence, the extension of the concept of input must be guided by the principles of reasonableness,non-cumulative contributions to PIS and to Cofins. Understanding that retail activity is a simple process of buying and selling is to ignore the specificities and contours of the industry itself, as the exploration of this activity involves a huge range of efforts aimed at its full achievement, among them, huge expenses on marketing intelligence, technology, means of payment, logistics, inputs that are essential to the exercise of this activity.