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Legal Update

Brazil: Injunction suspends the effects of the State Tax Fee on environmental supervision of research activities, mining, and the exploration and production of oil and gas – TFPG (Law No. 7.812/2015)

21 March 2016
Tauil & Chequer Legal Update

The effects of the state tax fee related to the control, monitoring and environmental supervision of research activities, mining, and the exploration and production of oil and gas – TFPG – were suspended by an injunction provided by the judge of the 11th Court of Public Treasury.

The Judge of the 11th Court of Public Treasury, granted an injunction, dated as of March 18, 2016, based on the impossibility of the levy of the state fee considering the disproportionality between its calculation basis and the complexity of the activities.

Moreover, the decision has recognized that, INEA has no jurisdiction to supervise these activities, and therefore the imbalance between the jurisdiction for the exercise of police power and the aspects of the tax obligation chosen by the legislator is evident.

Finally, the decision has considered the lack of the required specificity of these activities in order to justify the state fee levy.

View the entire decision.

Authors

  • Carolina M. Bottino
    T +55 21 2127 4217
  • Diana Castro
    Associate
    T +55 21 2127 4252

Related People

  • Ivan Tauil
    Partner
    T + 55 21 2127 4213
  • Guido Vinci
    T +55 21 2127 4230
  • Ana Luiza Martins
    T +55 11 2504 4626
  • Celso Grisi
    T +55 11 2504 4671
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