Government extends deadline for payment of tax debt installments.

The Ministry of Economy has extended the due dates for monthly installments related to payment plans administered by the Federal Revenue Service and the Attorney General's Office of the National Treasury (PGFN) due to the pandemic. This decision is outlined in Ordinance No. 201, published today in the Official Gazette of the Union.

However, the extension does not eliminate the application of interest stipulated in the installment payment law.

According to the rule, installments due in May 2020 may be paid until the last business day of August. Those due in June will be moved to October, and those due in July will be postponed to December.

Only installments that have not yet matured as of today, the date of publication of the ordinance and its entry into force, are covered.

The decree further clarifies that the extension of deadlines does not imply the right to restitution or compensation for amounts already collected. The extension also does not apply to installment payments of taxes under the Simples Nacional (Simplified National Tax System).

According to lawyer Fabio Calcini, partner at the law firm Brasil Salomão e Matthes Advocacia, the measure is relevant. "Many taxpayers were seeking the courts for this purpose," he states.

But the lawyer points out that interest continues to accrue, which increases the amount of taxes to be paid on the new due dates. "The benefit of this extension mainly concerns avoiding problems with tax compliance and exclusion from installment payment programs," he states.

By Beatriz Olivon.

Source: Economic Value