Law allowing direct agreement between creditor and the government for court-ordered payments is enacted.

President Jair Bolsonaro has signed into law Law 14.057/20, which regulates agreements between creditors for the payment of federal court-ordered debts. The legislation was published this Monday (September 14).

According to the new law, settlement proposals regarding court-ordered payments may be submitted by either the federal government or the creditor until the full amount is paid. However, the submission of a proposal does not suspend the payment of the debt in installments or the accrual of monetary adjustments and default interest.

Once the proposal is presented, the creditor or debtor entity will be notified to accept or reject it. It is also possible to make a counter-proposal, provided it is within the limit of 40% of the updated credit value.

It is possible to pay in up to eight annual and successive installments if there is a final and unappealable court order; or twelve annual and successive installments if there is no final and unappealable court order.

Vetoes
The approved text has six vetoes compared to the original bill. Among them is the possibility of advancing, albeit with a discount, expenses related to court judgments to be borne by the federal treasury in the short and medium term.

The government also vetoed an item in the text that provided for the allocation of money from these judicial settlements to policies to combat the coronavirus. The Presidential Palace considered the initiative meritorious. However, it argued that the proposal would increase spending to combat the epidemic without presenting an estimate of the respective budgetary and financial impact, in violation of constitutional rules.

President Jair Bolsonaro also vetoed the section that exempted religious temples from the CSLL — Social Contribution on Net Profit — and annulled fines imposed by the Federal Revenue Service for previous non-payment of this contribution.

Conversely, Bolsonaro maintained the provision stipulating that payments made to religious figures are not considered remuneration for social security contribution purposes. (Information from the Senate Agency.)

Source: Conjur