Post by xyz3700 on Feb 27, 2024 6:22:01 GMT
Revenues arising from guarantees on insurance company risk provisions, called guarantee assets, are not taxable by PIS/Cofins. Thus, by majority, the 2nd Ordinary Panel of the 3rd Chamber of the 3rd Judgment Section of the Administrative Council of Tax Appeals (Carf) established. Disclosure Reproduction PIS/Cofins does not apply to revenues arising from collateral assets, says Carf. Insurers and reinsurers are required to maintain a technical provision to cover the risk of claims by policyholders. The guarantee asset, by law, must be equivalent to the provision made by insurers. In the trial, the understanding of counselor José Renato Pereira de Deus prevailed. For him, reserves intended for investment in collateral assets should be considered financial income, not revenue. Therefore, no PIS or Cofins are levied on them.
Although the investment in guaranteeing assets results from legal imposition, the financial revenues earned cannot be considered as typical revenue arising from the corporate purpose, and, therefore, subject to the incidence of Cofins. In the case of insurance companies, the financial revenues arising from Legally compulsory investments are not covered by the concept of revenue", says the ruling. "Financial Chinese Malaysia Phone Number List revenues should not be included in the Cofins calculation base of insurance and reinsurance companies, in view of the declaration of unconstitutionality of article 3 of Law Furthermore, the counselor recalled, collateral assets are investments required by law. "Thus, the revenues earned by the appellant were received due to compulsory investments, provided for by law, they cannot be transformed into typical business activity", he explained.
The advisor also says that the Federal Supreme Court has already established the understanding that, for the purposes of defining the calculation basis, "turnover" and "gross revenue" are synonymous terms and consist of the sum of revenues arising from the exercise of operational activities. "Thus, 'turnover' and 'gross revenue' are understood as, for the purposes of identifying the PIS and Cofins calculation basis, the sum of revenues arising from the operational activity of the legal entity, that is, those arising from the practice of operations typical provisions set out in its corporate purpose, respecting the principles of equality and contributory capacity", he says.The topic has already merited at least two decisions by the Superior Chamber of Tax Appeals which, by the majority of its members, established the understanding that financial revenues are part of the calculation basis of Cofins and PIS, when arising from their compulsory investments by provision cool," he explains.
Although the investment in guaranteeing assets results from legal imposition, the financial revenues earned cannot be considered as typical revenue arising from the corporate purpose, and, therefore, subject to the incidence of Cofins. In the case of insurance companies, the financial revenues arising from Legally compulsory investments are not covered by the concept of revenue", says the ruling. "Financial Chinese Malaysia Phone Number List revenues should not be included in the Cofins calculation base of insurance and reinsurance companies, in view of the declaration of unconstitutionality of article 3 of Law Furthermore, the counselor recalled, collateral assets are investments required by law. "Thus, the revenues earned by the appellant were received due to compulsory investments, provided for by law, they cannot be transformed into typical business activity", he explained.
The advisor also says that the Federal Supreme Court has already established the understanding that, for the purposes of defining the calculation basis, "turnover" and "gross revenue" are synonymous terms and consist of the sum of revenues arising from the exercise of operational activities. "Thus, 'turnover' and 'gross revenue' are understood as, for the purposes of identifying the PIS and Cofins calculation basis, the sum of revenues arising from the operational activity of the legal entity, that is, those arising from the practice of operations typical provisions set out in its corporate purpose, respecting the principles of equality and contributory capacity", he says.The topic has already merited at least two decisions by the Superior Chamber of Tax Appeals which, by the majority of its members, established the understanding that financial revenues are part of the calculation basis of Cofins and PIS, when arising from their compulsory investments by provision cool," he explains.