Post by account_disabled on Feb 18, 2024 23:52:02 GMT -6
The 2nd Panel of the Superior Court of Justice, in REsp 1.950.577-SP reported by Minister Mauro Campbell Marques, judged ratified the understanding [1] that article 9 of Law No. 9.249/95 does not imposes a temporal limitation on the deduction of interest on equity (JCP) calculated in previous years.
In the case at hand, the legal entity calculated JCP values for the years 2008 to 2011, but the crediting in favor of the partners, and the consequent deduction, was only operational in the years 2010 and 2011.
The tax authority disallowed the deductions, drawing Telegram Number Data up the respective tax assessment notice under the argument that “the defendant paid, in 2010 and 2011, interest on own capital calculated on the net worth of the calendar years 2008 and 2009. This conduct implies a violation of the accrual basis, by deducting from the taxable income for the years — calendar 2010 and 2011, interest charges on the net worth for the years — calendar 2008 and 2009”.
Type of remuneration
Interest on equity (JCP) represents a type of remuneration intended for partners or shareholders of a business company that allows the perception of income equivalent to what they would receive if they sought another long-term financial investment. Thus, in accordance with the discipline of article 9 of Law No. 9,249/1995, the company pays remuneration to its shareholders and recognizes the amount as a deductible expense, deducting it from its taxable profit.
The central controversy between the tax authorities and taxpayers revolves around the moment in which the deduction of expenses related to the payment or credit of interest on equity can be made.
In these cases, the understanding adopted by the Federal Revenue of Brazil follows the rationale that the JCP deduction can only occur in the year in which they were calculated, under penalty of violating the legal limits of deductions foreseen for a given calendar year.
Therefore, when calculating the net profit for the year, the amounts allocated to partners as capital remuneration must form part of the entity's accounting profit, necessarily implying that they are recognized as part of the company's yearly results as an expense, not admitting that are incurred only when the allocation of profits is decided.
In the case at hand, the legal entity calculated JCP values for the years 2008 to 2011, but the crediting in favor of the partners, and the consequent deduction, was only operational in the years 2010 and 2011.
The tax authority disallowed the deductions, drawing Telegram Number Data up the respective tax assessment notice under the argument that “the defendant paid, in 2010 and 2011, interest on own capital calculated on the net worth of the calendar years 2008 and 2009. This conduct implies a violation of the accrual basis, by deducting from the taxable income for the years — calendar 2010 and 2011, interest charges on the net worth for the years — calendar 2008 and 2009”.
Type of remuneration
Interest on equity (JCP) represents a type of remuneration intended for partners or shareholders of a business company that allows the perception of income equivalent to what they would receive if they sought another long-term financial investment. Thus, in accordance with the discipline of article 9 of Law No. 9,249/1995, the company pays remuneration to its shareholders and recognizes the amount as a deductible expense, deducting it from its taxable profit.
The central controversy between the tax authorities and taxpayers revolves around the moment in which the deduction of expenses related to the payment or credit of interest on equity can be made.
In these cases, the understanding adopted by the Federal Revenue of Brazil follows the rationale that the JCP deduction can only occur in the year in which they were calculated, under penalty of violating the legal limits of deductions foreseen for a given calendar year.
Therefore, when calculating the net profit for the year, the amounts allocated to partners as capital remuneration must form part of the entity's accounting profit, necessarily implying that they are recognized as part of the company's yearly results as an expense, not admitting that are incurred only when the allocation of profits is decided.