The State of Rio de Janeiro enacted the Resolution n° 265 on June 19, 2018, in order to allow taxpayers to regularize their tax debts before starting an official tax audit and to reduce the amount of credits in dispute before the administrative court.

The proceeding is called a “friendly warning” and encompasses tax debts not yet declared in ancillary obligations and also ancillary obligations not yet presented to tax authority by the taxpayers. Tax authority identifies possible outstanding tax debts and ancillary obligations not yet fulfilled by crossing electronic data available in its systems.

The friendly warning does not withdraw the right given to taxpayers to perform a voluntary disclosure and pay the outstanding debts without penalties as long as it is settled a tax compliance statement with the tax authority listing the amounts to be regularized. Tax obligations not listed at the mentioned statement will be submitted to regular tax audits.

The friendly warning proceeding is not valid to (i) tax audits required by judicial courts or under the recommendation of the public prosecution; (ii) taxpayers that had incurred the same infraction before with the issuance of a tax assessment notice in the last three years; (iii) taxpayers that violated tax compliance statements in the last three years, and (iv) a tax assessment notice with the sole purpose of avoid the consumption of the statute of limitations.

The tax compliance statement will be considered fulfilled whenever the taxpayer (i) delivers or rectifies its tax ancillary obligations and/or (ii) pays the outstanding debts with legal accruals, as pointed out at the statement.

Resolution n° 265/2018 entered into force on July 16, 2018.

 

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Renato Lopes da Rocha

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