The Brazilian Supreme Federal Court (STF) is set to define the scope of the penalty provided for under Article 32 of Law No. 4,357/1964, which applies to profit distributions by companies with unsecured federal tax debts. The trial of Direct Action of Unconstitutionality (ADI) No. 5,161/DF, which began in a virtual session, has already given rise to three distinct positions regarding the requirements for imposing the penalty and will continue in an in-person session on August 6.

More than deciding whether companies with outstanding tax debts may distribute profits, the Court is examining the criteria that will provide legal certainty on the matter in future cases.

In an article published by Lex Legal, our attorney Gregório Caballero analyzes the grounds supporting the positions under debate and their practical implications for taxpayers with significant tax liabilities.

Read the full article: https://lexlegal.com.br/stf-definira-limites-de-multa-sobre-distribuicao-de-lucros-por-devedores/