ANSWER TO REQUEST FOR ADVANCE TAX RULING – NOTARIES PUBLIC CAN DEDUCT EXPENSES WITH ADVOCACY OFFICES AND PAYMENTS WITH DEBIT CARDS
Dutra Law Firm has recently resolved two Answer to Request for Advance Tax Ruling, where the Federal Revenue Service (RFB) was questioned through a client about the possibility of Notaries deducting from their Income Tax the expenses incurred by the Notary Public with law offices (Answer to Request for Advance Tax Ruling nº 210/2018 – Cosit) and the expenses to make available to the population means of payment by card debit card (Answer to Request for Advance Tax Ruling nº 280/2018 – Cosit).
The formal consultation is the instrument available to the taxpayer to clarify doubts as to the interpretation of a specific provision of the tax and customs legislation regarding the taxes administered by the (RFB). The same mechanism can also be used for questions about tax classification of goods.
This is a very interesting and useful mechanism, since, in addition to answering the taxpayer’s doubt, also prevents the Federal Revenue Service from establishing tax proceedings and / or applying fines and default interest related to the species consulted, provided that the presentation of the consultation occurs within 30 days after the taxpayer is informed of the content of the solution.
In the case of the Consultations, both results were positive to the Notary Public, since they confirmed the theses that the expenses of the Notaries, both with the hiring of law firms and with the use of a debit card receiving system, can be deducted from the Income Tax.
The first case (Answer to Request for Advance Tax Ruling nº 210/2018 – Cosit), which deals with the expenses with the hiring of law firms, RFB understood both contracting to provide legal advisory services and representation in judicial and administrative proceedings, can be deducted from income tax, provided that they consist of expenses of costing necessary to the collection of revenue and maintenance of the Notaries, regardless of whether such expenses are monthly, in fixed or eventual installments.
Likewise, in (Answer to Request for Advance Tax Ruling nº 280/2018 – Cosit) presented to the second case, they understood that expenses arising from the use of a debit card receiving system (such as bank fees and charges, amounts retained by the bank, leasing of equipment and expenses with bank account maintenance) are part of the cost to Notaries, and therefore are necessary to the perception of revenues and maintenance of the activity under taxation, and can also be deducted.
The decisions will benefit all the Notaries Public, since the Answer to Request for Advance Tax Ruling, have a binding effect, which means that both taxpayers and RFB auditors must follow their understanding.
In light of this, Dutra Law Firm is available for further clarification on the subject. Contact Us.
Por Aline Finatto