Determinants of the Temporality of Corporate Income Tax Litigation by Large Brazilian Banks in the CARF
24 Pages Posted: 14 Jun 2022
Date Written: June 1, 2022
This research maps the temporality of tax litigation within the Administrative Council of Tax Appeals - CARF, in proceedings dealing with the taxation of profits and withholding income of the six largest Brazilian banks. Moroseness generates costs and legal insecurity, delays tax collection, and aggravates tax litigation by making tax administrative procedures time-consuming and the tax administration inefficient. Methodologically, using proceedings from 01/2000 to 12/2021, the research identifies the determinants of temporality. The study of the largest banks exposes a unique portrait of the treatment of the administrative litigation system for its most recurrent and prestigious litigants, making one predict how much more problematic is the treatment of the small and medium taxpayers. The results show, among other findings, that procedural aspects, such as the final vote on the appeal and the use of the regular legal resources for clarification, special appeals, and diligence requests, are elements that significantly impact the temporality of proceedings. The procedure demands its simplification and that the necessary resources be ensured according to the predicted volume of litigation so that the tax administration can fulfill its function efficiently and reasonably. Understanding the determinants of temporality is crucial to act on the causes of slowness, seeking greater tax justice, both for the taxpayer and society, and ensuring a faster resolution of tax disputes. Shorting the length of administrative tax proceedings is a critical factor in guaranteeing public administration’s efficiency and tax justice. Bearing in mind that justice delayed is not justice, but qualified and manifests injustice.
Keywords: Procedural temporality. Administrative tax litigation, Income taxation, Banks, Administrative Council of Tax Appeals – CARF
JEL Classification: K4, K34
Suggested Citation: Suggested Citation