The Special Administrative Charging Scheme, defined as the one that will be dealt with on a priority basis, was created by the Administrative Ruling No. 1,265/2015 and refers to taxpayers whose total amount of collectable tax credits is equal to, or higher than, BRL 10 million. Despite this objective criterion, the Administrative Ruling authorizes the Federal Revenue Office to include other tax credits in the Special Administrative Charging Scheme.

If, after been notified, the taxpayer does not pay or suspend payment of the tax credits included in the Special Administrative Charging Scheme, the following measures, among others, may be imposed:

  1. Inclusion in the CADIN (Register of Outstanding Credits kept by Federal Agencies and Entities);
  2. Exclusion of the taxpayer from the REFIS, PAES and PAEX tax instalment payment programs;
  3. Exclusion of the taxpayer from the SIMPLES NACIONAL (Simplified Federal Tax Regime);
  4. Filing of a Tax Brief for Criminal Purposes with the Public Prosecution Office;
  5. Application of a  fine to the Company, its Managers and other Senior Management's members;
  6. Listing of assets and rights in order to monitor the property of the relevant taxpayer;
  7. Reporting the default to the Brazilian Regulatory Agencies in order to revoke the authorization for the performance of commercial activities in cases where the taxpayer holds a Concession or Permission for the provision of public services;
  8. Reporting to public banks in order to prevent the extension of credit derived from public funds, including the installments of facilities that have not been disbursed yet;
  9. Reporting for the purpose of seeking relief in court; and
  10. Declaration that the taxpayer is as "ineligible" for any taxpayer that has not been located twice in notices sent in connection with the Special Administrative Charge Scheme due to incorrect information in the RFB register.

In case the tax credits are not paid or suspended after the application of the above mentioned measures, such credits will be referred to the National Treasury Attorney's Office for inclusion as immediately enforceable debts. 

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Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.