Federal Supreme Court declared the Law 14.985/2006 from Paraná State unconstitutional. This law conceded discounts of ICMS (Brazilian VAT), without Confaz (National Council of Fiscal Policy) authorization, for companies importing goods through Paranaguá and Antonina ports, without Confaz (National Council of Fiscal Policy) authorization.
The decision was another declaration of unconstitutionality, regarding the "fiscal war", nickname that has been given to tax benefits granted by some states to attract companies. The innovation about this Supreme Court decision is its effect modulation from date of the judgment, March 11th, 2015.
The modulation of the decision effects is a consequence of the constitutional provision about the principles of good faith and legal certainty. Additionally, this law was in force for eight years, before it was annulled by Supreme Court, and the companies have used this benefit in good faith.
Given the recurrence of decisions regarding "fiscal war", Supreme Court Justice Gilmar Mendes, proposed a Binding Precedent (PSV 69) on this subject.Seizing Opportunities - Newsletter Brazil
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