The STF’s decision on res judicata and its impact on IPI on the resale of imported goods
In August 2020, the Federal Supreme Court (STF) decided, by a majority vote and with general repercussion, that the levying of IPI on the resale of imported products is constitutional.
This decision, at the time, sparked a red alert about the safety of companies that had final and unappealable court decisions exempting them from paying IPI, i.e.: based on this new STF decision, for the constitutionality of charging IPI on the resale of imported goods, should these companies resume paying the tax, or would their final and unappealable court decision continue to produce effects protecting them from this charge?
This dilemma has taken on a new shape since the recent STF decision on res judicata in tax cases, in which the justices unanimously decided that once the STF has ruled that a certain tax levy is constitutional, everyone must pay the tax, including companies with final court decisions that until then had exempted them from paying it.
The STF’s decision on res judicata, although it did not deal directly with IPI, but because it was a procedural decision, has a significant impact on those companies that, even after the August 2020 decision (which ruled that IPI on the resale of imported goods was constitutional), continued not to pay this tax.
Based on this new understanding of the STF, which has not had its effects modulated, these companies could be charged for the period in which they failed to pay the tax, which therefore entails a high risk and a possible considerable tax liability in these operations.
In this context of legal uncertainty, it is worth noting that the SUPERIAin its 20 years of business, has always based its decisions on taxation on extreme conservatism, seeking greater security for its operations and those of its clients.
This was no different in the case of IPI on resale, so that, understanding at the time that there was a high risk, it opted to keep paying the tax, a fact that now puts it in a comfort zone in the face of all this trouble.
In the current scenario, it is entirely irregular for any company to continue not to pay IPI on output for resale. This imposition has already been more than confirmed by the Supreme Court and, from then on, there is no longer any room for doubt about the obligation to pay.
For this reason, it is very important that you carefully assess the Trading Company operating your imports, especially if it continues to insist on not collecting IPI.
What’s more, given this scenario, it’s important to carry out a risk assessment of any tax liabilities to which these companies(Trading Companies) may be subject, and how much this may or may not impact and jeopardize their operations.
Don’t miss out on this assessment.
Our team of experts will be happy to answer any questions you may have.
