ECONOMIC ANALYSIS OF LAW AND TAX CREDIT IN JUDICIAL RECOVERY

Abstract

Methodology: The methodology to be used is a deductive method, by means of an explanatory and descriptive approach, with jurisprudential and bibliographic research, national and foreign, all specialized in the core of the theme. The specific problem to be raised is whether it would be possible to include the tax credit in the judicial reorganization plan. To obtain a response that is technical, practical and academic, initially, it will be explained about the special treatment given to tax credit in Law 11.101 / 05.

Results: Afterwards, it will be shown that the power and privilege granted to the Tax Authorities, as it stands, in the literal terms of the law, in the judicial reorganization processes, is inefficient and that the installment conditions that were in force for many years they were also not efficient. In the same sense, the reasons that show that the current legislation does not create positive incentives for the taxpayer to join such installment will be exposed. In the end, as a response hypothesis, the reasons that make it impossible, legally, operationally and constitutionally, to include in the tax credit recovery plan, in view of the high transaction cost, will also be addressed.

Contributions: It appears that the power and privilege granted to the Tax Authorities, as it stands, in the literal terms of the law, in judicial reorganization processes, is inefficient. The installment terms that prevailed for many years were also not efficient. Current legislation does not create positive incentives for taxpayers to adhere to such installments. Currently, in our law, it is impossible, legally, operationally and constitutionally, to include in the tax credit recovery plan, given the high transaction cost.