On December 21, 2022, the Attorney General's Office of the National Treasury ("PGFN") published the Ordinance n. 10.826, which regulates the procedures for taxpayers to use tax credits recognized in unappealable judicial decisions, formalized in "precatórios" (court order for payment), to offset or amortize outstanding federal tax debts.

Highlights of this new regulation are:

  • the authorization to use debts acquired from third parties;
  • the possibility of using these credits to pay or amortize debts included in installment programs or transaction negotiation; and
  • the provision that the claim to offset does not automatically release the judicial deposits made in guarantee to the debts to be offset.

The offer of credit must be made upon request on the REGULARIZE Portal (website of the Attorney General's Office of the National Treasury), along with other documents listed in the Ordinance, among which is the Certificate of The Net Amount Available for the purpose of Using Credit in special judicial order ("CVLD") to be issued by the Court, to prove the amount of the credit, and the domain chain upon the amounts.

The request will be reviewed by the competent sector of the PGFN, and taxpayers will be given the opportunity to justify or correct any divergence. With the formal acceptance of the proposal, PGFN shall notify the taxpayer, as well as the responsible judge and the Court about the total or partial use of the credit. The debt will be amortized after the financial availability of the funds by the Court.

Furthermore, the Ordinance provides for the possibility of a full or partial revision at any time, if any cause that prevents or modifies the credit offered appears (for example, if the credit is questioned administratively or judicially). In this case, the taxpayer will be notified to regulate the remaining amount of the debt.

Despite being an advance in the procedures for the use of judicial credits, it is important to notice that the Ordinance establishes that the offset or amortization of the debt will only be made at the time of the release of the funds by the Court, which requires attention in relation to any differences of amounts arising from the interests upon the debt, in the meantime.

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.