Following the enactment of Constitutional Amendment No. 132/2023, proposals for Complementary Laws to regulate the Tax Reform have been presented in the National Congress. Among the most debated points, it is important to highlight the proposals related to the monitoring of IBS (Broad-Based Sales Tax) and CBS (Contribution on Goods and Services).

Considering that the new constitutional forecast introduces principles of simplicity, cooperation, and transparency into the tax system, it seems contradictory that the new Complementary Law Project (PLP) No. 68/2024 allows for the concurrent monitoring of these new taxes.

In general terms, Article 312 of PLP No. 68/2024 establishes the competence of the Tax Auditor of the Brazilian Federal Revenue Service for the monitoring and establishment of the tax credit related to the CBS. In the case of the IBS, the competence will belong to the tax authorities linked to the tax administrations of the States, the Federal District, and the Municipalities. This is the first case where monitoring can be carried out concurrently by different federative entities.

Another instance of concurrent monitoring is provided for in Article 314 of the Law Project, which allows the Federal Revenue and the tax administrations of the States, Federal District, and Municipalities to enter into agreements for reciprocal delegation of the monitoring activity of IBS and CBS, in tax processes of small value whose assessment does not exceed the single limit established in the tax regulation.

Also, in accordance with the new constitutional principles incorporated into the tax system, PLP No. 68/2024 provides in Article 313, clause II, for the sharing in the same environment, of the records of the start and result of the CBS and IBS audits by the RFB and by the States, Federal District, and Municipalities.

However, the sharing of information does not mean that the audit process will be unified, but rather concurrent. This decentralization may lead to diverging interpretations and fines, since there is no explicit prohibition against taxpayers being surprised with simultaneous audits.

PLP No. 68/2024 was recently submitted to the National Congress, which will certainly lead to new discussions in search of effective and transparent monitoring of the new taxes on goods and services, essential requirements to ensure the simplicity of the system, one of the fundamental principles of the Tax Reform.

The Tax Law Department of Marins Bertoldi Lawyers closely follows the developments of the topic and is fully available to clarify any doubts and delve deeper into each business reality.

By Augusto Chimborski e Luiza França Pecis