The Finance and Taxation Committee of the Chamber of Deputies (Câmara dos Deputados) approved Bill 1203/19, authored by Deputy Sérgio Souza (MDB-PR), which establishes a ceiling on fines imposed on taxpayers who fail to comply with accessory tax obligations, such as filing tax declarations.

It is important to highlight that, currently, these penalties do not have a maximum limit. Therefore, under the approved text, fines will vary according to the type of taxpayer. For legal entities in the early stages of activity, exempt entities, entities exempt from taxes, or those opting for the presumed profit regime or Simples Nacional (a simplified taxation system for small businesses), the fine will range from R$ 500 to R$ 25,000.00 per month or portion thereof. For other legal entities, penalties will range from R
1,500.00 to R$ 75,000.00 monthly. For individuals, fines may vary from R$ 100 to R$ 5,000.00. Additionally, those who do not comply with notifications from the Federal Revenue Service (Receita Federal) will be subject to penalties in the same amounts established for each category.

The proposal modifies Provisional Measure 2.158-35/01, which defines these penalties but currently does not impose a ceiling on the fine amounts. Thus, the new bill provides greater predictability and limits fines, thus avoiding excessive penalties that could compromise businesses and taxpayers, given that the lack of a ceiling currently allows for high amounts, thereby increasing tax litigation.

In light of the above, with the new rule, it is expected to find a balance between oversight and the protection of taxpayers, thus reducing judicial disputes regarding this matter. Finally, the project is in a conclusive status and is a priority for analysis in the Committee on Constitution, Justice, and Citizenship (Comissão de Constituição e Justiça e de Cidadania – CCJC).