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THE EMPLOYMENT AND PAY-ROLL TAX ADMINISTRATION (UGPP) WILL BE ABLE TO MAKE COURT SETTLEMENTS WITH THE PAYERS OF MANDATORY CONTRIBUTIONS TO THE SYSTEM

The payroll taxpayers will be able to make court settlements to terminate judicial processes

 

The new Law 1819 established the following criteria:

  • Lower Court Instances: If the judicial process is being reviewed by a Lower Court Instance, the UGPP can settle with the payer, by lowering 30% of the penalties, interests on late payments, and price-level restatements. This settlement will be valid only if the payer pays in full all the mandatory contributions being disputed, 100% of the interests on late payments and 70% penalties, interests on late payments, and price-level restatements regarding the rest of the contributions.
  • Higher Court Instances: If the judicial process is being reviewed by a Higher Court Instance, the UGPP can settle with the payer, by lowering 20% of the penalties, interests on late payments, and price-level restatements. This settlement will be valid only if the payer pays in full all the mandatory contributions being disputed, 100% of the interests on late payments regarding retirement contributions and 80% penalties, interests on late payments, and price-level restatements regarding the rest of the contributions.
  • Penalties: When the procedure is determining the validity of a penalty imposed by the UGPP, but no mandatory contributions are being discussed, the settlement made with the payer can reduce up to 50% the penalties imposed to the taxpayer. For that, the payer will have to pay 50% of the penalties determined by the UGPP prior to the Court trial.