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Taxpayer obtains injunction to extend deadline for filing Dirbi with the Federal Revenue Service

August 5, 2024

In July, a decision was issued by the Federal Regional Court of the 4th Region granting a preliminary injunction requested by a shoe manufacturing company to extend its deadline for submitting the Dirbi – Declaration of Incentives, Waivers, Benefits and Immunities of a Tax Nature.

In this action, the company requested, first and foremost, the suspension of the submission of the Declaration, and if this was not possible, that an extension be granted in the deadline for submitting the obligation to the Federal Revenue Service.

The Judge understood that the deadline for submission granted by the IRS would be short, taking into account the information and documents that the company would need to gather to make the Declaration, and the sanctions applied in cases of non-compliance with the obligation.

On the other hand, it was understood that the suspension of the delivery of Dirbi by the company would not be appropriate, since the need to analyze tax benefits for taxpayers to ensure transparency is justifiable.

In the decision, it was argued that although there is an obligation for taxpayers to follow new legislation that affects their tax sphere, there is also a need to observe the complexity and quantity of information that the taxpayer must gather, especially considering that there is severe punishment in cases of non-delivery or non-correction of errors in Dirbi.

It is worth noting that the deadline for submission established by the Federal Revenue Service was July 20, 2024, but with the preliminary decision, the company that filed the lawsuit will have until August 4 to submit the Dirbi. Furthermore, it is necessary to point out that, according to Normative Instruction 2204/24, there is an extension of the deadline for applying fines to taxpayers who did not correct their declarations, that is, a longer deadline was granted to correct errors in the Dirbi without applying sanctions.

Since this is a preliminary decision, there is no definitive ruling on the case, and it is possible that the first ruling will be revoked. Furthermore, we would like to emphasize that this decision, although positive for taxpayers, does not apply to all companies that should submit Dirbi, and therefore, the deadline for submission until July 22nd was valid for all companies. We, at Mazzucco e Mello Advogados, remain at your disposal for any questions or clarifications that may be necessary.

If you have any questions about the matters covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

This communication, which we believe may be of interest to our customers and friends of the company, is intended for general information only. It is not a complete analysis of the matters presented and should not be considered legal advice. In some jurisdictions, this may be considered lawyer advertising. Please see the company's privacy notice for more details.

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