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Zero Litigation | How does the Debt Rescheduling Program work and how to join?

The Litigation Zero program offers up to 12 months to pay off federal debts, plus interest discounts and fines cancellation.

This Wednesday (1st) the Tax Litigation Reduction program, known as Zero Litigation, was launched, which offers the renegotiation of federal debts at the Police Headquarters of IRS Judgment (DRJ) or the Administrative Commission of Tax Appeals (CARF). The initiative offers up to 12 months to pay off debts, as well as interest discounts and cancellation of fines.

The program covers all pre-trial tax charges, both at the DRJ and at the Carf, including income tax, CSLL, PIS, Cofins and IPI. In an interview with UOL, lawyer Cristiane Costa, a tax law specialist and partner of Urbano Vitalino Advogados, says that after receiving the notice of infringement, the taxpayer can present a defense (appeal) to be judged by the DRJ. In the event of a negative outcome, the taxpayer can still file an appeal through Carf.

The program aims to favor those who confess and pay tax debts without charging penalties for late payment and officio.  (Image: Playback/Freepik)

The subscription period started on February 1st at 8:00 am and will end on March 31st at 7:00 pm. Interested applicants can apply via Portal of the Virtual Service Center (e-CAC portal) on IRS. However, to participate, you must meet the requirements, which have specific rules for individuals, small and large companies. Watch:

Individuals, micro and small businesses: They must have debts of up to 60 minimum wages (R$78,120). The discount offered ranges from 40% to 50% of the total amount of the debt (taxes, interest and fines).

Big companies: They must have debts greater than 60 minimum wages and will receive up to 100% discount on the amount of interest and fines (bad and hard to collect debts). Companies that have a tax loss and a negative calculation basis for IRPEF and social contributions can use the tax credit to reduce the debt – between 52% and 70% of the debt.

How to join Zero Litigation?

Check out the step-by-step to join program below;

  • To the Revenue siteselect the “Tax Transaction” option in the Service Concentration Area field;
  • Subsequently, click on the service “Transaction for participation in the tax dispute reduction program – PRLF”;
  • Fill in the membership application available on the e-CAC Portal;
  • Attach proof of payment of the first installment;
  • Present the certificate issued by an accounting professional regarding the existence and retention of credits deriving from tax losses and the basis for calculating the negative CSLL calculated and declared to the Revenue Agency.

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Source: Terra

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