The Brazilian government denies Foxbit, the national cryptocurrency exchange, a preliminary application to remain out of the country’s taxpayer register for up to 90 days.
Foxbit’s request was made because the electricity The corona virus crisis had a 40% impact on operating income. The exchange office wanted an extension of 90 days in order to be able to pay income taxes. The company is in a difficult economic situation as it has to pay three additional contributions to the state.
The decision of the Brazilian federal judiciary is based on the fact that the extension of income tax payments is not granted to companies that are not subject to the National Simple. It is a tax system regulated by the Brazilian Complementary Act, which unifies the payment of various taxes in a single guide and enables the payment of lower tax rates.
Cristiane Farias Rodrigues dos Santos, Judge at the 9th Federal Court of São Paulocommented on the situation. “The moratorium is to extend the term beyond the final term set for the settlement of a debt, thereby suspending the tax credit. However, it happens that there is a universal dependence on the law so that the judiciary cannot act as a positive legislator, from which only a part benefits individually, ”he clarified.
Corona virus is the main cause of the effects
Before the government’s decision, Foxbit mentioned Regulation No. 12/2012. This regulation regulates the expansion of federal tax payments upon recognition of a public accident. However, Cristaine said that the Federal Tax Service and the Office of the Attorney General of the National Treasury should take steps to make this possible.
Both agencies have to Enact the necessary laws and establish municipalities that fall under the state decree recognizing a public accident. Since the judge has not mentioned what happened, Foxbit cannot count on the requested extension despite the situation of the coronavirus.
Before the government’s decision, Foxbit stated that they would meet all of their tax obligations. However, they also assured that they are considering the possibility to appeal the decision of the country’s regulators.
It should be noted that CryptoNews previously reported on the Brazilian government’s measures regarding income tax payment and the situation caused by the corona virus. With this in mind, the Brazilian tax authorities have decided to postpone the deadline for declaring income tax, which was originally set to April 30, to June 30.