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Doing Business in Brazil
8. Tax Disputes
Brazilian law provides for a specific dispute proceeding regarding tax matters, in those cases, the disputes are usually developed through an administrative phase followed by a judicial phase. This model of dispute takes place when the taxpayer faces tax and/or fine charging.
The tax dispute framework is applicable to all administrative levels, i.e., Federal, States and Municipalities.
8.1. Administrative Proceeding
By receiving a tax and/or fine charging, the taxpayer can present a defense against the charging to be judged by the Brazilian Internal Revenue Service
This administrative proceeding usually has 2 levels: first, the taxpayer’s defense is judged by
the Internal Revenue Officers. The administrative appeal against this first decision, presented by either the taxpayer or the tax entity, will
be judged by a panel formed by representatives of the Internal Revenue Service and representatives of the taxpayers. In case of a tie, the decisive vote is made by an Internal Revenue Service representative.
In specific cases, there can be a third level of administrative dispute.
After the administrative proceeding, the taxpayer can still spontaneously dispute the charging in court or wait until the tax entity files a tax
The tax dispute framework is applicable to all administrative levels, i.e., Federal, States and Municipalities.
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