Subscription to Funrural Refis has the deadline extended until October 30th

Rural producers who want to regularize their situation with Funrural (Rural Worker Assistance Fund) will have until October 30th this year to join the Rural Tax Regularization Program (PRR), also called Rural Refis.

For lawyer Nelson Albino Neto, partner at EFCAN Advogados, "in the post-trial scenario of Funrural by the STF, the Rural Tax Regularization Program (PRR) became advantageous for the producer, as it allows the installment of the historical value of overdue debts until August 2017, with reductions of up to 100% in fines and late payment interest granted by law. It is now up to that producer who found himself frustrated with the STF's judgment, to make a rational and beneficial decision for his business. That's why , our recommendation is that you seriously evaluate the possibility of joining the PRR".

The extension was granted by the Federal Government, after the STF rejected the ruralists' requests to modulate the effects of the decision that declared the constitutionality of the contribution. With this measure, the Court did not allow Funrural to be considered valid only for sales that occurred after the trial.

Refisrural allows you to pay debts due up to August 2017 in installments as follows: 2,5% of the consolidated value of the debt at discounts, in up to two successive monthly installments and installments of the remaining amount, with reductions of 100% in fines, 100% in late payment interest and 100% of legal fees, in up to 176 monthly and successive installments, equivalent to a percentage of the average monthly gross revenue of the previous year, which varies between 0,8% for producers and 0,3% for acquirers.

Under certain conditions, the program also allows the offset of the debt with accumulated tax losses and a negative CSLL basis. In all cases, adherence to the program requires the producer to give up the objection/administrative appeal or the action filed to discuss this issue.

"It is very important to detail each taxpayer's debt, their financial condition and their cash capacity to then define the best adherence strategy, as the taxpayer must remember that the initial installment will have a significant value", explains Albino Neto.Also It is worth highlighting the situation of those taxpayers who sold their production to those who obtained a court decision, exempting them from the obligation to withhold at source or from payment as tax liability." The decision to adhere presupposes the analysis of a series of documents, so that the taxpayer does not pay the debt for the benefit of third parties".