With the publication of Decree No. 47,332/20, Rio de Janeiro taxpayers can already apply for amnesty for tax debts under the terms set out in Law No. 9,041/20.
The program in question applies exclusively to overdue tax debts arising from levies or disallowances of tax debts for taxpayers active in the economic activities of oil and natural gas extraction and natural gas processing, classified under codes 0600-0/01 and 3520-4/01 of the National Classification of Economic Activities (CNAE), and manufacture of petroleum refining products (CNAE 1921-7/2000). The program includes both assessed and non assessed tax debts, whether or not enrolled as outstanding debt, including those assessed for taxable events that occurred up to September 30, 2020.
The percentage of reduction of interest and fines is 90%, not cumulative with any other reductions. The decree makes clear the possibility of including only part of the debts subject to a given infraction notice, notice of assessment, or outstanding debt certificate.
In addition to ICMS debts, debts for contribution to the State Fund for Combating Poverty (FECP), the State Tax Balance Fund (FEEF), and the Temporary Budget Fund (FOT) may be included in the amnesty program. It is possible to opt for payment in lumpsum or in installments, except for FECP, FEEF, and FOT debts that only allow for payment in lumpsum.
To formalize enrollment into the program, the taxpayer will have to submit by November 13th of this year a proposal for a Consent Order for the Specialized Oil and Fuel Tax Audit (AFE04). One must also submit forms, the models for which are included in the exhibits to the decree, in addition to the company’s corporate documents and documents relating to its procedural representation.
Once the application is submitted (accompanied by the required documents and forms), administrative proceedings will be initiated and AFE04 will be responsible for certifying compliance with the legal requirements. In the event of non-compliance with any of the conditions required, the taxpayer will be summoned to remedy the non-compliance within a non-extendable period of five days, under penalty of dismissal.
Once the taxpayer's application for membership has been certified as being in good standing, AFE04 will forward the case to the Sub-Bureau of Revenue and the Sub-Bureau of Legal Affairs of the State Treasury, which will confirm the existence of interpretative differences. The purpose is to delimit, in an opinion to be ratified by the secretary of finance and the attorney general of the state, the conduct to be indicated in the Consent Order to be submitted to the governor.
Once the Consent Order has been signed, AFE04 will certify if the taxpayer has renounced and irrevocably waived the cases whose debts it intends to include in the amnesty program. After that, the Consent Order will be published in the Official Gazette and, within two days, the corresponding payment forms will be issued.
The decree clarifies that the attorneys' fees, in the event of payment in cash or in installments, will be 3% for debts not brought in court and 4% for debts brought in court. If the installment method is chosen, the fees must be paid in full when the first installment is paid. The reduction in fees refers only to the work of analysis and collection of the debt as a result of registration as outstanding debt. Any other fees fixed in other claims will be due in full, as established in the respective proceedings.
With the regulations of this amnesty expected by the oil and gas companies segment, it is recommended that interested parties as soon as possible begin the procedures to gather the documentation necessary in order to avoid setbacks in formalizing adhesion to the program.