Alerts
Definition of criteria for tie-breaking vote in the CARF
The Ministry of Economy defined criteria to delimit the application of the pro-taxpayer tiebreaker rule within in the Administrative Council of Tax Appeals (CARF), as determined by article 28 of Law no. 13,988, of April 14, 2020.
The proclamation of the result of the favorable judgment to taxpayers applies exclusively on:
a) judgments that have taken place in the sessions held since April 14, 2020, considering that it is a procedural rule;
b) in favor of taxpayers, not applying to third parties that are qualified as responsible (such as withholding agents) which may be challenged;
c) in administrative proceedings in which tax is imposed and enforced by means of issuance of a tax assessment or a tax assessment notice.
The results of the trials will be proclaimed with the casting vote of the president, even when a tie is found.
The tiebreaker rule in favor of taxpayers does not apply to judgments on:
a) matters of a procedural nature, as well as on conversion of judgments into a diligence;
b) motions for clarification; and
c) other CARF proceedings.
The new criteria must also be observed in judgments of motion for reconsideration or of preliminary or precedent issues that have merit content, such as: violation of statute of limitations or lack of standing of taxpayer.
Normative Act: Ordinance ME n. 260, published on 7/3/2020
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