Citizen Suits Filed Against CARF’S Decisions

The press has recently reported¹ that decisions favorable to taxpayers, rendered in tax administrative proceedings by the Administrative Council of Tax Appeals (CARF), have been challenged before the Judiciary through Citizen Suits filed based on Law no. 4,717/65.

These actions claim, in general, that the cancellation of tax assessments by the CARF were illegal and mistaken, which seriously damaged the public coffers and property, as well as offended the administrative ethics, for which reason they seek that the taxpayers be ordered to reimburse the Federal Government.

We believe that the grounds of these actions are not very consistent, since they are based on the thesis that the interpretation made by the Plaintiff of the Citizen Suits as to the tax rules on which the assessments canceled by the CARF are based must prevail over the one that was legitimately rendered by the representatives of the Federal Tax Administration, in the performance of the duty and power