By Guilherme Martins and João Pedro Riccioppo Cerqueira Gimenes*

In October, the 2nd Panel of the Superior Court of Justice (“STJ”), unanimously, pointed out that the limitations brought by Decree No. 10,854/2021 to the deduction of amounts allocated to the Worker Food Program (“PAT”) from the calculation of IRPJ were illegal, a relevant and assertive precedent established for the benefit of Brazilian taxpayers.

The reasons that led to this understanding, unprecedented in collegiate decisions in that Court, follow the line that the limitations have their source in an infra-legal diploma, so that, if the historical Legislation that instituted the PAT never brought the aforementioned restriction, it is forbidden for this to be done by a provision inferior to a Law, in view of the legal reserve for matters of this nature.

On that occasion, the 2nd Panel repeated other of its own understandings on the subject, which, added to the very recent precedent cited here, demonstrate the Panel's firm position on the matter and on other future ones that deal with a similar discussion.

It now remains for the 1st Panel, the other body that judges tax issues in the STJ, to take a position on the issue in a collegial manner, so that it becomes a settled matter in the Higher Courts.

Our team is available to provide any clarifications.

(with the collaboration of Pedro Antônio and GM Buzas)