The Brazilian newspaper VALOR ECONÔMICO reports that a decision by the 1st Chamber of the Superior Chamber of the CARF (Administrative Council of Tax Appeals) has stalled a relevant discussion for the Treasury regarding the taxation of real estate investment funds by rejecting paradigmatic rulings presented by the Union, under the understanding that they would only apply to cases involving fraud. With this, without a suitable precedent, such as that of the Península Fund, linked to businessman Abilio Diniz, experts believe that the tax authorities lose the ability to reverse unfavorable decisions in the last administrative instance. The understanding, the newspaper emphasizes, benefits two REITs (Real Estate Investment Trusts) that, in an ordinary panel, had their collection of IRPJ (Corporate Income Tax), CSLL (Social Contribution on Net Profit), PIS (Social Integration Program), and Cofins (Contribution to Social Security Financing) dismissed. As a rule, these funds are not taxed directly, and the tax falls on the shareholders or on the distribution of results, but Law 9.779/1999 imposes a limit to avoid competition with companies in the sector, prohibiting significant participation of shareholders in linked ventures. Failure to comply with this rule authorizes the treatment as a legal entity for tax purposes.
Source: www.jota.pro