Supreme Court overturns laws granting exemption

In a unanimous decision, the Supreme Court (STF) ruled unconstitutional the decree of the Holy Spirit that allowed the deduction of ICMS (Tax on Goods and Services) in imported product. "The decree provides immunity as well stay embedded in the company's assets. I understand that's an incentive to be well within the so-called war tax, "said Minister Dias Toffoli.

 
Decree 1542-R capixaba / 05 was challenged in the Supreme through a direct action of unconstitutionality (ADI 3702) authored by the Brazilian Association of Machinery and Equipment (Abimaq), upheld by the ministers.

 
She explained the organization in action, the decree allowed to defer payment of GST in cases of import of machinery and equipment for the poultry and swine for the moment of disembodiment of the equipment of the establishment of permanent assets. Abimaq pointed out that this benefit resulted, in fact, "the tax exemption of imported product, with similar effects of the exemption or non-incidence."

 

Defunct process

Another process of reporting for the minister Dias Toffoli GST on trial this afternoon was the unconstitutionality of Direct Action (ADI 2352) filed against the Order of the Holy Spirit 153-R/00. This action had the preliminary injunction granted on 19 December 2000. So since then was suspended the effectiveness of the standard, which gave deemed credit on domestic transactions and interstate goods or property intended for certain research activities and mining of petroleum and natural gas.

Today the case was closed because the device has been revoked. "The law no longer attacked Subsisting implied repeal in that it has established a new regulation," said the rapporteur to determine the termination of the case without ruling on the merits. All ministers followed the vote of the rapporteur.

 
Para

In a third process of reporting for Dias Toffoli Minister dismissed this afternoon, declared unconstitutional the Supreme device Law 5.780/93, Para, which allowed the local executive to grant tax benefits in the collection of VAT in cases of known and need to defend the state .

The revoked device - which was suspended by the Supreme court order from the day August 17, 1995 - also determined that the tax benefit would be worth whatever the decision of Confaz (National Council of Farm Policy). "Keeping just a precautionary measure (injunction) accepted long ago by this Court," the minister said Dias Toffoli, which was followed by his colleagues.

In this case, was sacked the head of article 12 of Law 5.780/93 Para (as well as the standard expression which referred to this device). The law was challenged in a direct action of unconstitutionality (ADI 1247) filed in March 1995 by the Attorney General's Office (PGR).

 
In the injunction, it was noted that to prevent a "war tax" between member states, the constitutional legislator prescribed general guidelines regarding the issue of GST. For example, the national character of the tax, which imposes the conclusion of interstate agreements as prerequisite for the valid issuance by member states and the Federal District, exemptions from tax incentives for such tax.

Source: STF