Entries by Dr. Plínio G. Prado Garcia

Prior Deposit Requirement Unconstitutional

By a 9 to 1 vote, the Brazilian Supreme Court has finally deemed unconstitutional a legal requirement whereby any taxpayer would have to post a cash deposit equivalent to 30% of any tax assessment in order for its claim against the assessment to be accepted at an appeal level. The so–called “prior deposit” represented an […]

COFINS tax and its exemption

By a vote of 6 to 4 of its eleven judges, the Supreme Court in Brasilia ruled to confirm a previous 2004 decision of a now retired member of the Court against the Federal Government. The Government had asked the Court to overule a Superior Court of Justice judgement which recognized a tax exemption that […]

Court order reduces tax costs

A Federal Judge in the Federal Regional Court for the First Region (TRF- 1ª Região) in Brasilia issued an order by request of a company headquartered in the State of Minas Gerais, allowing it not to include a state tax (ICMS) on the tax basis of two federal taxes, namely COFINS and PIS. The merits […]

Imported vehicles: Brazilian tax increase unconstitutional

The IPI tax increase of 30 percentage points adopted by the Brazilian government this September of 2011 for some imported vehicles is utterly unconstitutional. The IPI tax is based on two principles: selectivity and essentiality. Discrimination is not allowed on the basis of origin of the product. Importers and their customers in Brazil are therefore entitled to […]

Recognition and Enforcement of Foreign Judgments

Dr. Claudia Barmann Bernard Rechtsanwältin / Consultantconsultoria@pradogarcia.com.br I.      Introduction Globalization and international trade as well as Brazils growing economy have increased companies’ activities in the country including the needs to enforce judgments or arbitral decisions awarded in their favor. Foreign judgments can only be enforced or will have any other effects in Brazil after recognition by the […]

Standard & Poor’s and Fitch Ratings raise Brazil to Investment Grade

After S&P upgraded Brazil’s credit rating to investment grade on April 30, Fitch Ratings followed on May 29 granting Brazil investment grade status. The upgrades by both agencies recognize the country’s fiscal stability and debt management policies and reflect, amongst other factors, economic growth and the governments control over inflation. S&P raised the country’s long-term […]

PDP: The New Brazilian Development Program

The Brazilian Government has launched a new development program named Productive Development Policy (PDP). PDP has three purposes:  1.- To foster investments in 25 strategic sectors and to increase Brazilian  exports 2.- To stimulate development in the informatics and in the biotechnology industries 3.- To consolidate the Brazilian leadership in agribusiness, civil aviation and mining   PDP […]