On the 22 of January, 2018, the Chico Mendes Institute for the Conservation of Biodiversity (ICMBio) published Normative Instruction No. 2/2018, regulating the procedures for the conversion of environmental fines into preservation, improvement and recuperation services of the environment in environmental protected units. Normative Instruction No.2/2018 sets forth two proceedings to convert an environmental fine:
- Direct Conversion: the company presents its own environmental project according to ICMBio s directives, which will be analyzed. Should the project be accepted, a discount of 35% is applied on the fine.
- Indirect Conversion: the company adheres to a project pre-selected by ICMBio and a discount of 60% is applied on the fine.
The value resulting from the discount cannot be lower than the legal minimum fine for the violation.
The conversion of the fine will be formalized through a Conversion of Fine Settlement (TCCM). The non-fulfillment of the TCCM will implies on the enrollment of the debt in the executable tax debt and in the judicial enforcement of TCCM s obligations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.