STJ Prohibits Early Liquidation of Guarantee Insurance in Tax Executions


In a judgment held last Tuesday, February 20th, the 1st Panel of the STJ established that the Tax Authority cannot liquidate the guarantee insurance before the end of the tax execution.

This understanding emerged from the special appeal no. AREsp 2.310.912, in which the party contested the tax execution initiated by the state of Minas Gerais. With this new stance, the STJ changes an understanding that, until now, allowed the Judiciary to carry out the early liquidation of guarantee insurance, a practice that significantly impacted the finances of companies.

The discussion revolved around the applicability and the correct timing for the liquidation of the guarantee insurance, taking into account the importance of offering the Tax Authority a guarantee of payment, but also protecting taxpayers from a premature and potentially harmful charge.

The majority of the justices (4 votes to 1) understood that the guarantee insurance, provided by the Law of Tax Execution (Law 6.830/1980) as a way to ensure the payment of the debt in case of conviction, should only be liquidated after the judicial decision becomes final. This change in interpretation is a relief for companies, as early liquidation represented a significant outflow of resources from their cash reserves.

The discussion took on new dimensions with the overturning of a presidential veto in Law 14.689/2023 by the National Congress, which reinforced taxpayer protection by including paragraph 7 in article 9 of the Law of Tax Execution. This legislative change, of immediate procedural character, explicitly prohibits the liquidation of guarantees, including guarantee insurance, before the final judgment of decisions unfavorable to the taxpayer.

Therefore, the decision of the 1st Panel of the STJ represents a significant advancement in the protection of taxpayers’ rights and in the financial management of companies, avoiding measures that could compromise their liquidity and operation before the definitive conclusion of tax disputes.


Stay updated on the latest news and bulletins in the tax and corporate sectors.

    By providing my data, I agree to the Privacy Policy.