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High court rules companies cannot exclude inflation from tax base

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Vincent

The Superior Court of Justice (STJ) ruled that companies cannot reduce taxation on financial investments. Two tax law panels of the court rejected requests to remove inflation from the tax base of income tax (IR) and Social Contribution over Net Profit (CSLL). The requests relied on old case law to exclude monetary correction on financial investments from the tax base of IR and CSLL. The matter had been gaining steam in the Judiciary after rulings favorable to companies. The companies wanted to deduct inflation...

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