Judge authorizes debt transaction in SP before law comes into force

The 15th Public Finance Court of the Central Court of São Paulo granted an injunction, last Tuesday (14/11), which allows a company to transact debts in active debt with the São Paulo Tax Authority even before the beginning of the validity of the law that provides for such a possibility.

State Law 17,843/2023 was sanctioned on 7/11, but provides that most of its rules will only come into force 90 days after the date of publication. This period is called vacatio legis (vacancy of the law).

The decision interrupts the protests made at the notary’s office in the district of Bariri (SP) on behalf of the company regarding several active debt certificates (CDAs) in the state. It also suspends the enforceability of CDAs until the expiration date vacatio legis ends and the company presents the debt payment in installments.

Judge Gilsa Elena Rios explained that “the protest makes it impossible for the company to obtain credit in the market, which impacts the performance of its activity”. Furthermore, the author demonstrated an interest in adhering to the installment plan established by law.

For the judge, despite the period of vacatio legis, the injunction does not harm the state tax authorities. This is because, if adherence to the installment plan is not demonstrated, “the title may be presented for protest again and the tax execution will follow a regular process”.

The lawyer acted in the case Vinicius Araújo.

Click here to read the decision
Process 1076872-74.2023.8.26.0053