IOF: What do jurists say about the possibility of the STF to overthrow Congress decision?

The PSOL’s action questioning the decision of the Congress to overthrow Presidential Decrees about the Financial Operations Tax (IOF) will be reported in the Supreme Court (STF), by Minister Alexandre de Moraes. THE Infomoney Heard jurists to understand what is at stake in this case.

The request is to suspend the decision of the congress that overturned the acts of President Luiz Inacio Lula da Silva (PT) on the increase in the tax. AGU studies to file another request from the executive himself.

Government prerogative

The teacher of the Brazilian Institute of Tax Law Fernando Zilveti states that it is the competence of the STF to analyze the dispute between the powers.

According to him, the federal government has prerogatives to increase or reduce the IOF. “The last times the Supreme Court judged questions like this was favorable to the Executive for thinking that there is an invasion of competence by the legislature,” he argues. Zilveti also points out that when the government used the IOF to raise e -commerce, this was not questioned.

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According to the teacher, if the Supreme Court understands that there has been invasion of competence, the subject will return to Congress, which can make a law on the subject. “This should not generate crisis, they are common tensions in democracy,” says Zilveti.

Deviation of purpose

Lawyer Hugo Funaro, partner of Dias de Souza Advogados Associados and who is also a master of USP, believes that there is a tension between the three powers in this matter. “Obviously, any decision that comes from the Supreme will not please the other power, whether the legislature or the executive. Surely, it will displease someone,” says.

According to the lawyer, the law authorizes the Executive Power, but imposes limits. “There is a device that says that the change in rates must have in view of the objectives of monetary and fiscal policies,” he says.

Funaro points out that “the legislature concluded that this proposal for the taxation of the IOF made by the executive did not have in view of the objectives of the monetary and fiscal policy.” For him, the government simply needed an appeal and decided to change the IOF. Therefore, he believes that PSOL’s action would be considered unfounded.