ADMINISTRATIVE COUNCIL FOR ECONOMIC DEFENSE RESOLUTION No. 24, OF JANUARY 30, 2002 (Published in the Official Gazette of the Federal Executive, Section 1, on February 4, 2002) Provides for the procedures for enrollment of credits as Executable Tax Debts and for administrative and judicial collection thereof. THE PRESIDENT OF THE ADMINISTRATIVE COUNCIL FOR ECONOMIC DEFENSE - CADE, pursuant to his authority under Article 8, V, VI and IX, of Law 8.884 of June 11, 1994, and to Article 5 of Ordinance 11 of March 24, 1999, Whereas it is necessary to provide for procedures and routines for the enrollment of credits as Executable Tax Debts and for administrative and judicial collection thereof, R E S O L V E S: To establish procedures and routines for the enrollment of credits as Executable Tax Debts and administrative and judicial collection thereof. Article 1. - Credits arising from a Tax Deficiency Notice (AI) and a Payment Notice (NP) shall be enrolled as an Executable Tax Debt. Credits arising from AIs are those resulting from fines under Articles 26; 53, paragraph 1 (b); and 54, paragraph 5, combined with Article 25, of Law 8.884/94. Credits arising from NPs are those resulting from fines under Articles 9, IV; 14, XI; 23, I to III, and 46, III and IV, of Law 8.884/94; those resulting from nonpayment or irregular payment of the Procedural Fee instituted by Law 9.781 of January 19, 1999; and those ascertained by Administrative Proceedings of the Human Resources Division (DRH/CADE). Article 2. - The administrative proceeding having been distributed, after the steps set forth in Resolution 09/07 or in any rule that may replace it, the Office of the Attorney shall, within 20 days, verify that the credit is net and certain and enrollment as an Executable Tax Debt, pursuant to Article 17, III, of Supplementary Law 73 of February 10, 1993. Article 3. - The amount of the credit to be enrolled will correspond to the amount recorded in a final administrative decision, in a uncontested notice, in acknowledgment of tax debt, in an administrative proceedings for redress or reimbursement of damage, or in decisions of the Federal Budget Oversight Board. Article 4. - After enrollment as an Executable Tax Debt, an administrative collection letter shall be issued, accompanied by an identified deposit form. Article 5. - The Attorney General or Federal Attorney appointed by the former shall sign the Executable Tax Debt Certificate (CDA) and the Executable Tax Debt Enrollment Instrument (TDA). Article 6. - The Attorney General or Federal Attorney appointed to handle the tax execution shall sign the corresponding complaint. Article 7. - The Executable Tax Debt Section shall keep an Executable Tax Debt Register (RDA), the pages of which shall correspond to the Executable Tax Debt Enrollment Instruments (TDA), in increasing numerical order as from one. Article 8. - The Federal Attorney in charge of the Executable Tax Debt Section, or a civil servant appointed by him, shall initial all pages of the Executable Tax Debt Register (RDA), which shall comprise three hundred (300) pages.
Sole Paragraph - The first page of the RDA shall be preceded by an instrument of opening and the last (No. 300) shall be followed by an instrument of closing, both drawn up on letterhead pursuant to the models in Attachment I and II hereto. - 2 - Article 9. - The Executable Tax Debt Enrollment Instrument shall include the data provided for in Article 2, paragraph 5, of Law 6.830, of September 22, 1980. The respective certificate, on the same lines, shall serve as an extrajudicial enforcement instrument for purposes of the tax execution. Article 10. - The RDAs shall be kept and safeguarded in the charge of the Federal Attorney responsible for the Executable Tax Debt Section, and may only be handled by civil servants assigned to the Executable Tax Debt Sector. Article 11. - All occurrences referring to the credit, such as cancellation and discharge, shall be annotated in the Executable Tax Debt Instrument (TDA). MONETARY UPDATING Article 11-A - The fine set forth in Article 25 of Law No. 8884/94 will be calculated on a daily basis until the limit of ninety days counting from the date established in the agreement for the compliance with the determinations. After ninety days, the amount will be annotated in the Executable Tax Debt Register for the administrative or judicial collection. (Added by Resolution No. 33/2002) Article 12. - The amounts corresponding to the credits payable to CADE shall be stated in reals, pursuant to Law 8880 of May 27, 1994, of May 28, 1994. Sole Paragraph - In the event of any change in the provisions of law on domestic currency and corresponding indices, CADE shall make the adjustments required for collection pursuant to this article. Article 13. - Credit consolidation means the set of transactions that alter the amount of the credit as a result of monetary updating and legal surcharges payable. (a) (b) In the consolidation of credits related to Law No. 9781, of January 19, 1999, altered by Law No. 10.149, of December 21, 2000, it will be applied the additions set forth in Article 6 of Law No. 9781/99, as well as the duties established in Decree-Law No. 1025/69 (Article 1º), Decree-Law No. 1645/78 (Article 3), Law No. 7799/89 (Article 64, Paragraph 2) and Law No. 8383/91 (Article 57, paragraph 2) (As amended by Resolution No. 33/2002); In the consolidation of credits related to penalties imposed in compliance with Law No. 8884/94, it will be followed the applicable federal legislation, specially Law No. 9065/95 (Article 13), Provisional Measure No. 1542/96 (Article 26), Provisional Measure No. 2176-79/2001 (Article 30), accrued by the duties set forth in Decree-Law No. 1025/69 (Article 1), Decree-Law No. 1645/78 (Article 3), Law No. 7799/89 (Article 64, paragraph 2) and Law No. 8.383/91 (Article 57, paragraph 2) (As amended by Resolution No. 33/2002). Article 14. - Consolidation of the credit balance not received in full, for purposes of enrollment as a Federal Executable Tax Debt at CADE, shall be reached by the difference between the original consolidated amount of the credit and the installments paid, with the due updating. INSTALLMENT PAYMENT OF THE DEBTS Article 15. - Credits receivable may be paid as follows: (Provisional Measure--MP 2176-79, Article 10)
(a) up to five thousand reals (R$ 5,000.00), payment shall be in a lump sum; - 3 - (b) (c) (d) from five thousand reals and one centavo (R$ 5,000.01) to fifty thousand reals (R$ 50,000.00), divided into at most ten monthly consecutive installments, updated in accordance with the Government s official monthly index as from the second installment, with due regard for the minimum amount of five thousand reals (R$ 5,000.00); from fifty thousand reals and one centavo (R$ 50,000.01) to five hundred thousand reals (R$ 500,000.00), divided into at most 20 monthly consecutive installments, updated in accordance with the Government s official index as from the second installment; from five hundred thousand reals and one centavo (R$ 500,000.01) on, divided into at most 30 monthly consecutive installments, updated in accordance with the Government s official index as from the second installment. Paragraph 1. - The procedure under the main provision and items (a), (b), (c) and (d) applies to debts under judicial execution if the debtor so desires. Paragraph 2. - The installment payment under this article does not apply to debts whose collection is governed by specific procedure issued by CADE act. Article 16. - To obtain authorization for installment payment the debtor shall fill in a specific form, obtainable at CADE. Article 17. - Installment payment shall be formalized by means of an "instrument of commitment", on a specific form, to be filled in by hand or electronic means. Paragraph 1. - The installment payment commitment instrument shall be signed against evidence of payment of the first installment. Paragraph 2. - The amount of each installment shall be stated in reals, the amount of the first installment to be adjusted so that the sum of the installments equals the total credit. Paragraph 3. - The amount of each installment shall not be less than five thousand reals (R$ 5,000.00). Paragraph 4. - Late payment of two installments, whether or not consecutive, or of the last, shall automatically cancel installment payment. Article 18. - CADE shall at its discretion grant new installment payment to the same debtor, with due regard for the provisions of Article 15 hereof. INCLUSION IN THE INFORMATION RECORD OF UNPAID CREDITS OF FEDERAL BODIES AND ENTITIES (CADIN) Article 19. - Pursuant to Provisional Measure 2176-79 of August 23, 2001, debtors shall be included in CADIN 75 days after they have been informed of the existence of the debt liable for enrollment therein, all information regarding the debt to be provided. Article 20. - Upon evidence of regularization of the situation that gave rise to inclusion in CADIN, CADE shall provide for the corresponding write-off within five business days. LEGAL PROCEEDING DOCKET Article 21. - The docket shall be opened with a copy of the complaint, method of calculation updating and breakdown of the enrolled debt, copies of all acts, including administrative acts, and documents on the status of the case to be attached thereto.
Article 22. - Proceedings for Executable Tax Debt collection shall be distributed equitably to the Federal Attorneys assigned to CADE. Article 23. - The proceedings, containing the data for prosecution, shall be distributed to the Attorneys, accompanied by the following documents: - 4 - (a) (b) (c) (d) (e) (f) Executable Tax Debt Instrument (TDA); Executable Tax Debt Certificate (CDA); Enrolled Credit Breakdown (DCI); Attachment to Legal Grounds - method of updating credits; Description of Jointly Liable Parties; Calculation Chart with updating of amounts; Article 24. - As from the tenth day after attachment of the Notice of Receipt (AR) of the administrative collection letter, the Attorney shall have ten (10) days to file the corresponding tax execution. Article 25. - On pain of functional liability of the Attorney attached to the case, unjustified requests for suspension or halting of administrative proceedings, repeatedly and for an indeterminate term, are hereby prohibited, except for locating debtors and assets to guarantee execution. Article 26. - When it is necessary to halt judicial proceedings temporarily in order to examine documents, the Attorney shall ask the Court to suspend execution for a maximum of thirty (30) days, informing the Federal Attorney in charge of the Executable Tax Debt thereof for the necessary steps. Article 27. - Suspension of the tax execution will not be requested in the event a public sale has already been ordered, except by express prior authorization of the CADE Attorney General. SERVICE OF PROCESS AND SURVEY OF ASSETS Article 28. - When a debtor is not served with process for tax execution because he cannot be located, the Attorney shall apply for service of process by public notice on the debtor and/or the jointly liable parties, if applicable. Article 29. - In the event it is impossible to locate the debtor or his assets for attachment, the Attorney in charge shall proceed in accordance with in Article 40 of Law 6830/80, providing for all necessary procedures. Article 30. - The proceedings shall be shelved when the debt has been fully paid up. Article 31. - This Resolution takes effect on the date of its publication, all contrary provisions being hereby revoked, in particular Articles 15, 16, 17, 18 and 19 of CADE Resolution 09/97. JOÃO GRANDINO RODAS CADE President
- 5 - ATTACHMENTS I and II INSTRUMENT OF OPENING This book, under the title Executable Tax Debt Register (RDA) and No...., to consist of ( ) Executable Tax Debt Enrollment Instruments, in increasing order with serial numbering per year, is designed for the enrollment of Executable Tax Debts, the creditor of which is the ADMINISTRATIVE COUNCIL FOR ECONOMIC DEFENSE - CADE and meaning debts arising from fines imposed by CADE and not paid by the deadline established by law or final decision rendered on administrative and judicial proceedings. Brasília (Federal District--DF),...,... OFFICE OF THE CADE ATTORNEY INSTRUMENT OF CLOSING By this Instrument of Closing, Executable Tax Debt Register (RDA) No.... is hereby closed, having contained... (...) Executable Tax Debt Enrollment Instruments under n os.../... to No..../.... Brasília (DF),...,... OFFICE OF THE CADE ATTORNEY
- 6 - EXECUTABLE TAX DEBT CERTIFICATE (CDA) I certify that pp. of Executable Tax Debt Register (RDA) No. record as follows: DEBTOR: Name (corporate) Individual Taxpayers Register/General Taxpayers Register (CPF/CGC) Address Alternative address: JOINT DEBTOR: Name (corporate) CPF/CGC Address Alternative address: DEBT LEGAL GROUNDS Principal (fine): R$ Interest: R$ Others: R$ Total: R$ Maturity Date: In full (...) PROCESSING Administrative Proceeding No. Publication of decision: Tax Deficiency Notice No. Notice No. Contestation Notice of Decision Request for reconsideration Notice of decision For the record, I hereby make an extract of this certificate, signed by me and the CADE Attorney General. Brasília, Prepared by: Examined: Name: Functional Category: Annotation: Name: Functional Category:
- 7 - EXECUTABLE TAX DEBT ENROLLMENT INSTRUMENT (TDA) No. By this instrument, the following is enrolled as an Executable Tax Debt to the Administrative Council for Economic Defense - CADE: DEBTOR: Name (corporate) CPF/CGC Address Alternative address: JOINT DEBTOR: Name (corporate) CPF/CGC Address Alternative address: DEBT LEGAL GROUNDS Principal (fine): R$ Interest: R$ Others: R$ Total: R$ Maturity Date: In full (...) PROCESSING Administrative Proceeding No. Publication of decision: Tax Deficiency Notice No. Notice No. Contestation Notice of Decision Request for reconsideration Notice of Decision For the record, I hereby make an extract of this instrument of enrollment, pursuant to Resolution 24/2002 of the CADE Board Session, signed by me and the CADE Attorney General. Brasília, Prepared by: Examined: Name: Functional Category: Annotation: Name: Functional Category:
- 8 - REQUEST FOR DEBT INSTALLMENT PAYMENT: LAW: MP 2776-79 of August 23, 2001, and subsequent republications. GROUNDS: Article 10 of MP 2776-79 The debit balance of the debt shall be updated in accordance with the Special Settlement and Custody System (SELIC) rate. Interest shall be charged on the amount of the monthly installment at the rate of 12% per year. DOCKET: / / PARTY CONCERNED: CADE PROCEEDING No.: FEDERAL BUDGET OVERSIGHT BOARD (TCU) No.: LEGAL ACTION: LEGAL PROCEEDINGS REGISTRATION No.: BASE AMOUNT (FACE): UPDATED AMOUNT: R$ MONTH/YEAR: INSTALLMENT PAYMENT PROPOSAL (MONTHLY INSTALLMENTS) DOWN PAYMENT OF R$ + ( ) INSTALLMENTS OF R$ MAXIMUM NUMBER OF INSTALLMENTS: THIRTY (30) NOTE: APPLICANT S EARNINGS: Monthly in reals: R$ Annual: R$ None ( ) Unspecified ( ) Other ( ) Specify: ATTORNEY S OFFICE OPINION Grant ( ) Grant with provisos ( ) Denial ( ) None ( ) CONCLUSION DENY ( ) GRANT IN Comments: Brasília, DF INSTALLMENTS