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PGFN Ordinance No. 10,826 regulates the use of court-ordered payments for tax offset

19/01/2023

On 12/22/2022, Ordinance PGFN No. 10,826 was published, regulating the procedures for the use of credits resulting from final court decisions to settle debts enrolled in the Union’s active debt. This is a new alternative for taxpayers to redeem court-ordered payment credits and also extinguish their tax debt.

The provision of this modality for settling debts had already been approved by Constitutional Amendment 113/2021, which amended Article 100, §11 of the Federal Constitution, expanding the possibility of using court-ordered payments, which was previously limited to the acquisition of public real estate. With the regulation by the Attorney General’s Office through Ordinance No. 10,826/2022, taxpayers can now use their liquid and certain credits resulting from final court decisions to pay off debts enrolled in the Federal Union’s active debt.

According to the Ordinance, credits obtained through assignment can also be used to settle tax debts, and the assignment must be indicated in the certificate of the net amount available for the purpose of using the court-ordered payment credit.

The request for the settlement or amortization of debts must be submitted by the taxpayer on the REGULARIZE portal, accompanied by the documentation indicated in Article 8 of the mentioned ordinance, and, if in accordance with the established terms, will be accepted by the Attorney for the National Treasury, who will inform the judge of the execution and the court about the total or partial use of the credit. The debt settlement will only occur after the financial resources are made available by the respective court.

It is worth noting that the ordinance does not authorize the total or partial withdrawal of deposits linked to debts enrolled in the Federal Union’s active debt, which can only occur with judicial authorization.

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