Enrollment in the Zero Litigation Program (Programa Litígio Zero) runs until 7 p.m. on March 31. The program, which extends to the Federal Revenue Service (Receita Federal) the model of tax settlements available since 2020 for the Office of the Attorney General of the National Treasury (PGFN), allows the renegotiation of tax debts based on the taxpayer’s ability to pay, in exchange for the withdrawal of court actions (in the case of debts registered in the Federal Government’s Outstanding Debt roster) or administrative challenges before the Administrative Council of Tax Appeals (Carf), the body that adjudicates, in the administrative sphere, debts owed to the Tax Authority.
The Zero Litigation Program can be used by individuals, small, micro and large companies; it is aimed at those who have federal debts of taxes and levies, such as Income Tax, ICMS and Cofins.
The enrollment period for the renegotiation of debts by means of the Tax Settlement (Transação Tributária) began in February 2023 and ends at 7 p.m. on March 31, 2023. Enrollment can be carried out on the Virtual Service Center Portal (e-CAC Portal), available on the Federal Revenue Service website.
Access to the e-CAC requires a silver- or gold-level Gov.br Portal account, a digital certificate (in the case of companies), or a special code that can be obtained by means of the receipt number of the last Income Tax return (for individuals).
Objective of the Zero Litigation Program
Zero Litigation was announced at the beginning of the year by the Minister of Finance, as one of the measures to replenish the government’s coffers in 2023.
Zero Litigation provides for the renegotiation, under special conditions, of debts owed to the Federal Government. Although the program works similarly to the traditional Refis programs, there is a difference because the granting of discounts occurs based on the size of the debt and the type of taxpayer.
The taxpayer’s debts—considered credits from the government’s point of view—are classified based on the ease with which they can be recovered by the Federal Government, being type A credits (with a high prospect of recovery), type B credits (with a medium prospect of recovery), type C credits (difficult to recover), or type D credits (unrecoverable).
Summary of the program’s objectives:
- To allow, by means of reciprocal concessions, the resolution of tax disputes.
- To allow the maintenance of the productive source, of employment and of the income of workers.
- To ensure that the collection of tax credits under administrative tax litigation is carried out in such a way as to adjust the expectation of receipt to the capacity of the taxpayers to generate results.
- To give effect to the constitutional principle of the reasonable duration of proceedings within the scope of the Federal Tax Administration.
Access the website of the government to learn more.
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Source: Agência Brasil
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