Exporters go to court to maintain tax benefit

The Covid-19 pandemic has forced exporters who cannot ship goods because of closed borders to file legal actions. These companies seek preliminary injunctions not to lose the tax benefit of the regime called “drawback.” One of the decisions is benefitting an energy company from Rio Grande do Sul, saving R$ 2 million in taxes, excluding fines and interest.

According to José Augusto de Castro, president of AEB (the Brazilian foreign-trade association), around one thousand companies exporting manufactured products may have been impacted by the pandemic. They would risk losing the benefit.

Drawback temporarily suspends federal taxes on inputs used in the production of goods destined exclusively for export. However, if the sale is not carried out within a period of up to two years (one year extendable for another year), the exporter is obliged, by law, to collect the suspended taxes with additional charges.

In 2020, the federal government extended the deadlines for suspension of tax payments provided for in concession acts that were about to expire (Law No. 14,060). But this year, the bill that provides for the postponement is still pending in the National Congress (Bill No. 1232/2021).

“The Federal Revenue Service has already extended the deadline from 2021 to 2022, but it has to go through the National Congress [the bill], and this delay harmed some companies”, says the president of the AEB.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/legislacao/noticia/2021/08/23/exportadores-vao-a-justica-para-manter-beneficio-fiscal.ghtml

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