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CARF Disapproves Binding Precedent

CARF is a collegiate body, composed of representatives of the State and society, with the task of judging in the second administrative instance, disputes in tax and customs matters.

The law firm was represented today by our partner Jeová Costa Lima Neto, who accompanied the extraordinary session of the Administrative Council of Tax Appeals, in Brasília, which deliberated on fifty draft proposals.

THE CARF came up with the unification of the three Boards of Taxpayers then existing, from the edition of Law 11.941, of May 2009.

The measure stemmed from studies that pointed to the need to eliminate redundancies, rationalise administrative activities, optimise procedural procedures and print faster in the solution of tax administrative disputes.

Among the proposals, we highlight the 49th Proposal for Binding Precedents, whereby “the cargo agent and the maritime agent, as local representatives for the international carrier, are liable for infringements committed in the carriage of goods by sea”.

The Binding Precedent was not approved! This closed another chapter in the long battle fought by the Tax Authority against ship agents – who suffer from the fact that The Brazilian Federal Revenue Office imposes on them fines that should be destined to the international carrier.

The binding precedent proposed by CARF intended to give a final outline to the imbroglio, but in a completely unfavourable outcome to ship agents – essential figure for international maritime transport.

As agents of foreign shipowners who carry out international transport, ship agents perform important task of dealing directly with the complex intricacies of Brazilian bureaucracy.

Our office mission is to promote foreign trade, shipping mentality and Legal Certainty in and outside the courts, we are happy with the outcome of the non-approval of CARF’s proposed binding precedent!