Brazil’s Supreme Court reversed its prior position in one of the most relevant tax issues in dispute before the Brazilian judiciary: the possibility for manufacturers to take federal excise tax (IPI) credits on purchases of materials that are zero rated, or exempt from or not taxed by IPI. With a 6-5 vote, the Supreme Court ruled that taxpayers are not legally entitled to take IPI tax credits on purchases of materials subject to IPI exemption, zero-rating, or nontaxation.
15Aug 2007