Our partner Artur Muxfeldt speaks to ConJur about the requirement for proof of ICMS payment

Consultor Jurídico (ConJur) magazine reported on a court decision obtained by BVZ Advogados, with the involvement of our partner Artur Sahione Muxfeldt, on behalf of a company subject to a Special Tax Inspection Regime imposed by the State of São Paulo.

Under this regime, the tax authorities began requiring the company’s customers and carriers to present proof of payment of the ICMS owed by the supplier itself, under penalty of joint liability and restrictions on the use of tax credits. In practice, this requirement led to suspended payments, threats to cancel orders, and refusal to receive goods.

The 2nd Public Treasury Court of São Bernardo do Campo (SP) granted a preliminary injunction suspending this requirement, based on the grounds that joint liability depends on specific legal provisions and that conditioning the company’s commercial relationships on proof of payment may constitute an indirect means of collection, with the nature of a political sanction.

The case highlights the limits of special tax inspection regimes. Measures that make business activities unfeasible may be considered unlawful by the Judiciary.

Read the full article in ConJur.