Brazil's supreme court STJ has ruled that the government levy of certain taxes on the value of private pension contributions from 1989-95was illegal, the court said in a statement.
The federal government will now have to pay back retirees certain tax revenues above the legal limit set for that time period based on a federal rule compensating lost interest income, the court said.
"It's not going to affect us a lot because it's a decision about the specific amount of money people put in the private pension system between 1989 and 1995," life and private pension federation FenaPrevi VP Carlos Guerra Barreiros told BNamericas, adding corporate plans would not be affected.
During time, individual contributors were not able to defer their taxes on private pension contributions, resulting in overpayment, but the situation only applied to about 2% of the pension funds under management excluding VGBL plans, he said.
In the case of Itaú (NYSE: ITU), where Barreiros is a lawyer, this would only apply to 0.25% of these funds.
The STJ ruling came in a case involving five retirees demanding back payment for their overpayment, but the plaintiff's lawyer claims to have 2,000 similar cases, local daily Folha de S Paulo reported.
The retirees in the current case appealed to STJ after receiving two unfavorable decisions in lower courts, according to the STJ statement.
No comments:
Post a Comment