How the Fiscal Administrative Process Works in Brazil

The fiscal administrative process is a set of procedures defined by a country’s legislation to handle issues related to taxes and the fulfillment of tax obligations by taxpayers. It is overseen by the administrative authority responsible for tax collection and enforcement.

Multiple Stages

The fiscal administrative process involves various stages, such as initiating the procedure, allowing the taxpayer to present a defense, analyzing evidence and documents, and offering opportunities for appeals. The competent tax authority reviews the information provided by the involved parties and determines the legality and accuracy of the applicable tax issues.

It’s important to note that the fiscal administrative process serves as a way to resolve conflicts between the tax authority and taxpayers without requiring judicial involvement. This approach aims for a faster and less costly resolution for both parties.

[See more]: ACCOUNTING AND BUSINESS INTELLIGENCE: THE IMPORTANCE OF ACCOUNTING REPORTS IN DECISION MAKING

What If There Is No Agreement?

If no agreement is reached during the fiscal administrative process, the taxpayer still has the option to take the matter to the judicial system to contest the decisions made by the administrative authority.

[See more]: SUCCESSION PLANNING VIA HOLDING: HOW DOES IT WORK?

How Long Does It Take on Average?

The fiscal administrative process typically takes around one year to be resolved, though in some cases, it can extend up to three years. During this time, the taxpayer maintains positive CNDs (Debt Clearance Certificates) until the process is definitively concluded. At the end of the process, there is still the option to take the case to court.

Conclusion

The fiscal administrative process is a legal framework designed to resolve tax disputes, ensuring the fair and transparent application of tax laws and providing taxpayers with avenues for defense and appeal.

If you need experienced accounting support that can provide the best strategies to improve your company’s financial performance, CLM Controller offers tailored solutions to help navigate tax processes efficiently.