In a lawsuit filed with the Superior Court of Justice, the Brazilian Institute of Family Law must ask the federal government to return approximately 6.5 billion reais in undue taxes. This is because the government would be charging Brazilians this tax unduly. The lawsuit, which began in 2015, will end at the end of this month. So, for more details, check below!
Government to refund up to US$6.5 billion in undue taxes
Therefore, according to the information released, one of the actions in question is the collection of income tax on alimony. In this case, according to the Family Law Institute, there may be double taxation, making the collection illegal. According to the Attorney General's Office, "Given that federal law allows alimony to be deducted from the calculation basis of income tax due, the amount corresponding to alimony is not taxed twice."
In other words, in this case, the rule does not result in the payment of double taxation. Therefore, there are two different views on the case. According to the AGU, if the STF's decision is favorable to the refund of the income tax amount or the removal of the rate, this could result in huge losses collected by the government.
In the end, if the fee is removed, the annual loss will be around 1.05 billion reais. Furthermore, if people go to court to claim the money back from the last five years, the country's collections will be immediately reduced by 6.5 billion reais.
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