The result is against the tax authorities of Sao Paulo, which loses the collection of the ICMS with the validation of credits, and in favor of businesses
BRASILIA-IL Federal Supreme Court (STF) formed a majority to validate the claims of ICMS relating to the purchase of goods in Manaus Free Zone. The Court overturned the assessments of Fazenda do State of Sao Paulo who had rejected these credits and prohibited further measures in this regard.
The result is against the São Paulo tax system, which loses ICMS revenue with the validation of credits, and in favor of businesses.
The appeal was presented by the government of Amazon, who argued that the law guarantees the granting of ICMS tax incentives to companies in the Manaus Free Zone and prohibits other states from canceling tax credits granted in the operations of the industrial hub. The government also stated that the set of decisions taken by the Ministry of the Treasury of São Paulo constitute jurisprudence that violates the rules that regulate the area.
The majority of ministers understood that the Constitution does not require the authorization of other states, through the National Council for Financial Policy (Confaz), to grant fiscal incentives to ICMS.
Rapporteur Luiz Fux and ministers Alexandre de Moraes, Cármen Lúcia, Dias Toffoli, Edson Fachin and André Mendonça voted in this direction. Minister Cristiano Zanin was the only one who disagreed until Monday afternoon. The trial was scheduled to conclude at 11.59pm.
Source: Terra
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