The Brazilian National Congress recently approved Supplementary Bill (PLP) 124/2022, a measure that paves the way for consensual dispute resolution in Brazilian tax matters.
The special arbitration proposal
The central focus of the approved bill is to introduce new mechanisms to resolve disputes between taxpayers and the tax authorities, the government bodies responsible for tax inspection and collection. According to the text, dispute resolution will take place through special tax and customs arbitration.
Impact on tax dispute resolution
Arbitration is a dispute resolution method in which the parties agree to submit their case to independent experts, offering an alternative to traditional court litigation. By proposing this model for tax and customs matters, PLP 124/2022 seeks to foster a more consensual environment between the State and taxpayers.
Congressional approval represents a shift in Brazil’s approach to tax litigation, introducing consensual mechanisms into a field traditionally marked by lengthy court proceedings.
This content is for informational purposes only and does not constitute legal advice. For guidance on specific matters, consult a qualified lawyer.
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