The Federal Supreme Court (STF) ruled last week, on the 15th, that ICMS cannot be included in the PIS/Cofins calculation base, a decision that allows thousands of taxpayers to win lawsuits against the Federal Union.
However, the Office of the Attorney General of the National Treasury (PGFN) says it will appeal, requesting that the so-called “modulation” be set for 2018, which would make the decision apply only to new cases. The PGFN states that the Federal Union would run the risk of having to pay up to R$ 100 billion in potential taxpayer lawsuits relating to the last five years.
An article from Folha de S. Paulo states that if all taxpayers harmed by the inclusion of ICMS in the calculation base of the contributions had filed suit from 2003 to 2014, the Federal Union could have had to pay approximately R$ 250 billion.
The newspaper also reports that about 10 thousand lawsuits are suspended awaiting the STF’s decision, and that the change in the PIS/Cofins calculation base has been under discussion at the Supreme Court for almost 20 years.
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