STF releases sharing of PIX and card data with states

Recently, the Federal Supreme Court (STF) made an important decision that could have an impact on companies and taxpayers throughout Brazil.

In a close vote, the STF has determined that data from financial transactions carried out via PIX and credit and debit cards must be shared with state tax authorities. The aim of the measure is to improve tax inspection, especially the collection of ICMS.

What's at stake?

The central point of the decision is the transfer of financial transaction information to state tax authorities in order to increase the efficiency of tax collection. The National Finance Policy Council (Confaz) regulates that banks and financial institutions must provide data on all transactions carried out via PIX and cards.

The STF, by 6 votes to 5, declared this rule constitutional. The rapporteur of the case, Justice Cármen Lúcia, pointed out that the sharing of data does not constitute a breach of bank secrecy, as the information will remain protected by the state tax administrations.

Impacts for companies and taxpayers

With this decision, companies will need to redouble their attention to managing their tax obligations, since any inconsistency in financial transactions can be quickly detected by state tax authorities. The measure also represents an increase in inspection, which could lead to more notices being issued to those who do not comply with tax rules.

For taxpayers, the main concern revolves around privacy. Despite the STF arguing that bank secrecy will be maintained within tax agencies, Justice Gilmar Mendes, who voted against the measure, warned about the lack of clear rules to protect citizens' financial information, which could result in abuses of power.

What changes in practice?

The ruling does not require financial transactions to be exposed to the public, but rather shared exclusively with state tax authorities. This means that taxpayers and companies will have to adapt quickly to this new scenario of intensified inspection. Any flaws in ICMS reports or other tax returns can be easily identified and questioned.

In addition, the volume of financial information that will be transferred to the states could lead to an increase in the number of inspections, making tax compliance essential to avoid sanctions. Companies must ensure that their accounting management practices comply with the law in order to minimize risks.

Read also: Sales tax discount: impacts of the Tax Reform

Discussion on data privacy

Although the STF validated the agreement, the debate on privacy and bank secrecy continues. Justice Gilmar Mendes, along with four other justices, voted against the measure, stating that the lack of adequate rules for the use of this data could lead to violations of taxpayers' privacy.

The lack of clear regulations on how the data will be stored and used by state tax authorities could lead to uncertainty for companies and individuals. In addition, there is the possibility of new lawsuits challenging the constitutionality of the measure, especially if abuses or flaws in its implementation are identified.

Conclusion

This decision marks a new phase of fiscal rigor in Brazil, requiring companies to have impeccable accounting and tax management. To ensure that your financial operations comply with the legislation, it is essential to rely on accounting and tax specialists.

In this context, the CLM Controller stands out by offering personalized accounting and tax planning services for companies of all sizes. With an experienced and specialized team, CLM Controller helps ensure that your tax obligations are met accurately, minimizing risks and optimizing processes. Contact us to find out how we can help your company navigate the new tax requirements and maximize tax efficiency.