The 4th Panel of the Federal Regional Court of the 3rd Region (TRF3) unanimously upheld a ruling that ordered the collection of taxes levied on operations carried out on board an international cruise ship, in the 2016/2017 season, in Brazilian territory.
The international cruise companies claimed that the requirement to collect taxes was illegal and asked not to pay the amounts related to the sale of goods on board the ship. The company questioned the following taxes:
- Corporate Income Tax (IRPJ);
- Social Contribution on Net Profit (CSLL);
- Import Tax (II);
- Tax on Industrialized Products (IPI)/
- Social Integration Program/Contribution to Social Security Financing (Pis/Cofins).
In addition to the illegality of the charge, the companies claimed that the operations carried out on an international cruise would fall under the customs transit regime — not subject to tax incidence.
The panel, however, considered that, as international cruise companies sail in Brazilian waters, they are subject to the legal system set out in article 102 of the National Tax Code (CTN).
According to the rapporteur, federal judge André Nabarrete, “in addition to transporting passengers, cruises offer tourists the provision of various services and the sale of products in bars and shops located on the ship. Therefore, such operations carried out in national territory are subject to taxation, according to legal provisions”.
The judge concluded that IN SRF No. 137/1998 and COANA Execution Standard No. 06/2013 do not violate the principle of tax legality (article 5, item II, of the CF) and fulfill the regulatory function of customs/tax obligations imposed by federal legislation.
The process is number 0024717-31.2016.4.03.6100.
Source: https://www.jota.info/tributos-e-empresas/tributario/cruzeir-tributos-brasil-trf3-14022022