TAX

Souto Correa’s Tax team is dedicated to both consultancy and litigation and comprises professionals with multidisciplinary training and experience serving companies in different sectors of the economy. The consultancy services span municipal, state and federal taxes, including social security contributions, mergers and acquisitions, structuring of transactions, tax benefits, transfer pricing and due diligences, as well as the legislative process. The practice of judicial litigation comprises State Federal Courts with strong presence in the Higher Courts. In administrative litigation, the team’s practice covers representation at all levels, including the Board of Tax Appeals (CARF) and state and municipal administrative courts. In addition, the team has a consistent practice in Customs Law, working with taxation on foreign trade transactions, tax classifications, special customs procedures, customs clearance of import and export goods, customs services and registrations with SISCOMEX and SISCOSERV.

“One satisfied client says: ‘They are a very experienced team, who boast broad knowledge of tax law, including direct and indirect tax, and also develop close relationships with their clients.’” (Chambers and Partners)

“Another source adds: ‘The lawyers in the team are business-oriented, always available and have impeccable legal skills.’” (Chambers and Partners)

“Henry Lummertz specialises in constitutional tax law and customs issues. He has vast expertise in tax litigation with experience handling high-level cases before the Supreme Court of Justice. Clients highlight that ‘he is extremely skilled in many areas of tax law, covering both direct and indirect tax,’ and add: ‘He is able to work before all levels of the judicial system.’ Another interviewee praises his ‘impeccable technique, business mindset and availability.’” (Chambers and Partners)

 

Recent representations

• Representation of a Brazilian company that produces food for dogs, cats and farm animals challenged the charge of Excise Tax (IPI) levied on the production of animal food packaged in packs of more than 10kg on grounds that these products are exempt from Excise Tax;

• Assistance to a parent company of a multinational technology company based in China, which held certain credit rights against another company of the group based in Brazil deriving from transactions related to software purchases. In order to avoid unnecessary taxation, the firm assisted the client in structuring an operation to write off these credits;

• Assistance to a Brazilian company which manufactures friction materials and has factories in many countries worldwide in the project and analysis of the tax impacts in different possible structures for an acquisition of R$ 180 million, considering aspects such as goodwill amortisation;

• Consultancy for a company which operates in the Brazilian energy market to render regular tax consulting in relation to several matters, including corporate Income Tax (IRPJ), Value-Added Tax (ICMS), Social Contributions (CSLL, PIS, COFINS and INSS), Tax Benefits and Customs Controls and Regulation;

• Consultancy for a market leader that operates in the Brazilian technology market in rendering regular tax consulting in relation to several matters, including corporate Income Tax (IRPJ), Value-Added Tax (ICMS), Tax on Services (ISSQN), Social Contributions (CSLL, PIS, COFINS and INSS), Tax Benefits and Customs Controls and Regulation;

• Counselling for one of the largest security and outsourcing service providers company in Brazil. Based in São Paulo (SP), it requested legal counselling concerning the revision of their defense strategy against tax levies. In addition to this, the company asked Souto Correa to review the tax structuring of both their operations and those of the group;

• Legal advice to a company that operates in the segment of eCommerce (eBooks) and marketplace in providing a legal opinion addressing the feasibility of calculation of credits under the noncumulative payment regime of the Contribution to the PIS – Programa de Integração Social (Social Integration Programme) and Contribution to Fund Social Security (Contribuição para o Financiamento da Seguridade Social, or COFINS).