Criticism revolved around this tiebreaker. As the president is appointed by the IRS (National Treasury), the final decision could be analyzed as favorable to the regulatory body.
So, the main points debated regarding the constitutionality of the casting vote are:
The casting vote rule was designed to prevent ties in CARF votes by allowing the chairman of the panel to decide the issue. However, critics argue that granting this tie-breaking power to the representative of the National Treasury gives the regulatory agency an unfair advantage, since the chairman of CARF is appointed by the government. This could lead to a perceived lack of impartiality in decisions , which could harm taxpayers.
Separation of Powers
The Brazilian Constitution provides for the separation of the kuwait mobile database Three Powers , where the Executive, Legislative and Judiciary have distinct and independent functions. Some legal experts and specialists argue that the CARF's casting vote interferes with the independence of the Judiciary, since the president of the council is appointed by the Executive. This interference could be considered unconstitutional , since the Constitution establishes that the Judiciary must be impartial and free from external influences.
Balanced representation
The equal composition of CARF, with an equal number of representatives from the National Treasury and taxpayers, aims to ensure a balance of power in the judgment of tax issues. However, the application of the casting vote may undermine this representation , since the president's vote may override the position of the other council members. This raises questions about the effectiveness of the participation of taxpayer representatives in the council's decision-making process.
The impacts of the CARF project on the budget
According to the economic team at the Ministry of Finance, with the return of the casting vote at CARF, the expected revenue is up to R$60 billion for public coffers , still this year.
This measure is one of the most important elements for the new set of fiscal rules to work and allow the government to be able to spend what is necessary to implement its agenda.
In addition to the return of the casting vote, the proposal provides that the Federal Revenue Service must make available a tax self-regulation program. In practice, this means that taxpayers will be able to be classified according to their level of compliance, and may receive benefits such as priority service and non-application of penalties.