On October 18, the Federal Regional Court of the 1st Circuit submitted for judgment the Incident to Resolve Repetitive Demands which litigates the possibility that tax auditors participating in decisions by the CARF (Administrative Council of Tax Appeals) receive the productivity bonus established by Provisional Presidential Decree No. 765/16.
On that occasion, the court found that receipt of the bonus does not constitute cause for recusal or suspicion of councilmembers who are auditors since it is not possible to presume bad faith or dishonesty of persons, especially public servants in the performance of their duties. The court also found that the rules governing administrative proceedings do not cause any impediment to the performance of the tax auditors on the CARF. In addition, it pointed out that the scenarios for recusal and suspicion provided for in the agency’s internal rules do not contemplate the receipt of a benefit established by law, such as the productivity bonus.
But the final word on the subject will be given by the Federal Supreme Court (STF), which has already recognized the general repercussion of the matter (Topic 934). Although the appeal filed by the Public Prosecutor of the State of Rondônia discusses the productivity bonus due to state tax auditors, the position to be adopted by the STF will have repercussions in all spheres of tax administration.
